Remember though during the 1960's the fire wall
between money raised from SS taxes and income
taxes was breached.
The general fund borrowed from the SS funds, and
the general funds paid and pays SS funds IOU's
Thus SS taxes go to fund general fund programs
in reality.
Now during the eighties when the marginal income rates
were cut, SS taxes were raise a number of times.
SS taxes are capped for the first $65,000 or so.
Thus if you make $2,000,000 only the first
$65,000 is taxed, and if you make $65,000
all of it is taxed.
Thus the tax of 7% on some one who makes 65 G's
is approx. $4,550 or 7% of gross income.
The tax of 7% on some one who makes 2 mil is
also $4,550 or 0.228% of income.
With SS taxes, in essence borrowed from to fund general
programs, the tax cuts of the eighties became
more of a tax shell game. Marginal income
rates down, SS taxes up. Who bore the greatest burden
if all the money "really" goes into the general fund?
Seems most taxes get shifted, in general rather than
reduced. Cut State income taxes, raise local property
taxes..et cetera.
Regardless, I wonder exactly what taxes were accounted for
when Wall Street Journal did its analysis.
Is there a link to the article or can some one
provide the complete text? Did this article
also site the percent increases per capita of the top 1%,
top 5% and median earner?
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