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If they are unfunded, they come from workers' taxes; if funded, they come from investment income.
Today workers outnumber retirees and the workers' taxes pay the retirees' benefits.
Yet Social Security has always been a pay-as-you-go system, with workers' taxes going not to some actual trust fund for them but directly toward benefits for retirees.
The analyses showed that the plan would cost the government $2 trillion -- the number Mr. Kerry used -- to keep paying benefits to retirees while part of workers' taxes went to their personal accounts.
Also by quixotic last stands – above all Concorde, that great socialist project to spend squillions of workers' taxes so that Joan Collins could arrive in New York in time for lunch.
How would the government raise the hundreds of billions of dollars it would cost to write checks to retirees while some of workers' taxes were being diverted into their private accounts?
Similar(45)
The payroll tax holiday this year has reduced workers' tax on wages up to $110,100 to 4.2 percent from 6.2 percent.
Allowing businesses to give health insurance to their workers tax-free does promote insurance, but it also encourages overspending on health care.
He would give all workers tax cuts, while Mr. Gore would give tax relief only to the "right" people, as determined by bureaucrats.
Tuition subsidies, provided by some employers for their workers tax-free, were made permanent for undergraduate study and reinstated for graduate study.
This suggests that the bill has little chance of becoming law this year, robbing Mr Obama of funds he planned to use to make his workers' tax cut permanent.These setbacks should not be read as defeat, however.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com