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0 pointsseanmcdirmid6y ago0 comments

This is why capital gain taxes are generally different from income taxes (the previous are lower and can be offset by losses to prevent risk taking).

Social security and Medicare are funded directly via payroll taxes, they are not part of he general fund and you pay for them separately. Comparing them is like comparing medical insurance premiums or 401k savings to military spending.

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scarface746y ago

Social Security and Medicare taxes have always been mixed in with regular income taxes. The government “borrows” money from the social security fund and issues the funds IOUs. There is no separate account where money is stashed away and only spent on SS and Medicare.

seanmcdirmidOP6y ago

> Social Security and Medicare taxes have always been mixed in with regular income taxes

No, they never had. In fact, 47% of the population doesn’t pay income taxes at all, just payroll taxes, which are capped rather than progressive (anti progressive, actually).

The government does borrow money via IOUs to fund things like military mostly, but they also borrow money via treasuries, are you saying China’s export surplus should be mixed with regular income taxes as well?

scarface746y ago

Despite all of the accounting tricks, at the end of the day, “payroll taxes” are spent to fund every part of the government just like all of the other taxes. We just happen to have a surplus now.

Once the tide turns and social security is running at a deficit, regular income tax will have to pay for social security. It’s all the same money.

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0 pointsseanmcdirmid6y ago0 comments

This is why capital gain taxes are generally different from income taxes (the previous are lower and can be offset by losses to prevent risk taking).

0 comments

scarface746y ago

seanmcdirmidOP6y ago

> Social Security and Medicare taxes have always been mixed in with regular income taxes

No, they never had. In fact, 47% of the population doesn’t pay income taxes at all, just payroll taxes, which are capped rather than progressive (anti progressive, actually).

scarface746y ago

Despite all of the accounting tricks, at the end of the day, “payroll taxes” are spent to fund every part of the government just like all of the other taxes. We just happen to have a surplus now.

Once the tide turns and social security is running at a deficit, regular income tax will have to pay for social security. It’s all the same money.

1 more reply

j / k navigate · click thread line to collapse