regressive vs progressive (Reply #54) - Democratic Underground

In the discussion thread: Ultra Low Interest Rates A Threat To Social Security [View all]

Wed Mar 30, 2016, 04:52 PM

eniwetok (1,629 posts)

54. regressive vs progressive

"Taxed once through SS and then through income taxes to repay it. This is the problem with any financial tool the government can get their fingers on. They'll rip it off and say trust us, we'll pay it back. "
Payroll taxes are regressive and income taxes are progressive. So if there's more to be paid in interest... ie out of general funds... at least hopefully. Borrowing has gotten insane.

So I don't understand your objection. When interest was 6-7-8% on the trust fund... the interest was coming from the same source. By your logic we can be taxed for SS and not get any interest and in that way we can avoid the double taxation.

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Replies to this discussion thread

57 replies	Author	Time	Post
Ultra Low Interest Rates A Threat To Social Security [View all]	eniwetok	Mar 2016	OP
A start	TrueDemVA	Mar 2016	#1
they will pay it back	eniwetok	Mar 2016	#4
So double taxation for the same benefits.	OnlinePoker	Mar 2016	#6
some canadian money is invested OUTSIDE the country	eniwetok	Mar 2016	#11
regressive vs progressive	eniwetok	Mar 2016	#54
It's not just taxation to pay back the interest	OnlinePoker	Mar 2016	#57
That's still a dumb idea	Recursion	Mar 2016	#38
LBJ and the "unified budget" NT	1939	Mar 2016	#48
It isn't raising alarm bells because the trust fund is supposed to be spent.	jeff47	Mar 2016	#2
no guarantee the GOP will implode	eniwetok	Mar 2016	#12
There's no guarantee the sun will rise tomorrow	Major Nikon	Mar 2016	#14
it's untenable if the only new revenue is from	eniwetok	Mar 2016	#23
I'm speaking about the GOP, and not SS	Major Nikon	Mar 2016	#25
There's only so long the Democratic party can keep the Republican party alive.	jeff47	Mar 2016	#17
where did you get 30 years from?	eniwetok	Mar 2016	#24
The 2034 claim started in about 2004.	jeff47	Mar 2016	#30
I don't know where you got those numbers	eniwetok	Mar 2016	#40
From previous reports. Just because they're not online does not mean they do not exist.	jeff47	Mar 2016	#41
Applause	Recursion	Mar 2016	#39
Is that you Pete Peterson?	Fuddnik	Mar 2016	#3
hardly	eniwetok	Mar 2016	#8
There it is!	-none	Mar 2016	#35
The rate that the government lends to itself is inherently trivial	Taitertots	Mar 2016	#5
2.8 trillion is trivial?	eniwetok	Mar 2016	#9
You're missing the point	FBaggins	Mar 2016	#15
of course...	eniwetok	Mar 2016	#37
"Lent and spent". It's gone. Every penny comes from increased taxes	Taitertots	Mar 2016	#50
shifting the tax burden...	eniwetok	Mar 2016	#52
The obligations are independent of the income stream.	Taitertots	Mar 2016	#53
see post above	eniwetok	Mar 2016	#55
of course interest payments come from the same source... somewhat.	eniwetok	Mar 2016	#56
Sorry... untrue	FBaggins	Mar 2016	#7
what's "untrue"?	eniwetok	Mar 2016	#10
The entire premise of the article.	FBaggins	Mar 2016	#13
sorry... you're incorrect	eniwetok	Mar 2016	#19
Apologies... but you still don't get it.	FBaggins	Mar 2016	#34
missing the math?	eniwetok	Mar 2016	#42
interest rates are set by Congress	eniwetok	Mar 2016	#22
Well, yeah Congress can always amend the SS Act. But until they do that, it's pretty much a market	Hoyt	Mar 2016	#28
comparable interest paid	eniwetok	Mar 2016	#43
Nope. They're tied to market rates	FBaggins	Mar 2016	#33
so you want to cut benefits?	eniwetok	Mar 2016	#21
Lol... nope	FBaggins	Mar 2016	#32
when you	eniwetok	Mar 2016	#44
Ultra low interest rates are not healthy for the economy in general...	Wounded Bear	Mar 2016	#16
nope... I don't favor privatization	eniwetok	Mar 2016	#20
In general, I agree....	Wounded Bear	Mar 2016	#27
I think they have driven rates down in the hopes of spurring job creating business.	Hoyt	Mar 2016	#29
Low interest rates also reduce unemployment and generally boost the economy.	jeff47	Mar 2016	#31
low interest rates	eniwetok	Mar 2016	#45
And it hasn't worked well because of other issues that only Congress, not the Fed, can address.	strategery blunder	Mar 2016	#47
And NO privatization	Omaha Steve	Mar 2016	#18
Raise the cap. nt	WhiteTara	Mar 2016	#26
or stop exempting capital gains	eniwetok	Mar 2016	#36
and, not or...	Wounded Bear	Mar 2016	#46
Ultra low interest rates...	sendero	Mar 2016	#49
Agreed. Allowing giant banks to borrow money for free from the taxpayers without no requirement	GoneFishin	Mar 2016	#51

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