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We have means of doing it, through higher social security cheques or helping the unemployed.
But most economists say they expect higher Social Security taxes have started to weigh on consumers.
The bill uses $52 billion in higher Social Security taxes to pay for health care expansion.
More than half of this would be financed by higher Social Security payroll payments.
They are real and have to be met through insurance premiums, cash payments or higher Social Security contributions.
(Mr. Reagan also approved three more major tax increases, starting with higher Social Security levies in 1983).
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(Low income workers have a relatively high Social Security replacement rate, so they don't need to save as much).
But Tito Boeri, a pensions expert at the Bocconi University business school in Milan, said that, curiously, Italians, after paying high social security taxes to support the pensions of their parents' generation, have little set aside for their own retirements.
Moreover, countries that have had relatively low rates of economic growth, such as the United Kingdom and the United States, are relatively low spenders on social security, while countries that have had high rates of economic growth, such as Belgium, Denmark, and the Netherlands, are high social security spenders.
Nobody denies France's labour market has problems: stubbornly high unemployment; paltry growth; stifling and often incomprehensible set of employment laws (the latest edition reportedly runs to 3,689 pages); high social security charges; and complicated hire-and-fire rules that mean French employers prefer precarious short-term contracts over stable jobs.
Europe pays for the bulk of its welfare state with extremely high social security taxes, in most cases double our current rates.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com