Greenspan did not pull any punches in 1983...the intent was to put Social Security on solid basis, positive trust fund all the way, for 75 years.
If fact, for the time, it was very conservative, if the economy continued to grow as it had for the previous 40 years since WWII, the trust fund would grow forever (which would mean workers being taxed too much in the present). At the time, one might have even suspected Greenspan raised the payroll rates too much... Now why would he have done that...
What's happened since? Well of course the Reaganomic trickle-down economy has not turned out as well as the previous 40 years, ESPECIALLY for wages, the basis of revenue for SS. Part of Reagnomics is huge cut in tax rates on the wealthy, corporations, investment income, not so much on poorer people (who may have actually seen tax increase because of the increase in payroll tax).
So, in effect, ordinary taxpayers invested in the wealthy by giving them huge tax cuts, and the wealthy were supposed to return an endlessly growing economy, a rising tide that would lift all boats, jobs for and with a future. But instead the wealthy did these things:
1) outsource, outsource, outsource
2) cash out at the low rates and build guilded age mansions
3) predatory finance, healthcare, ...
4) political "speech"
Time for clawback, or at least drop this counterproductive social investment program of undertaxing the wealthy. They aren't delivering, it's a money pit.
If fact, for the time, it was very conservative, if the economy continued to grow as it had for the previous 40 years since WWII, the trust fund would grow forever (which would mean workers being taxed too much in the present). At the time, one might have even suspected Greenspan raised the payroll rates too much... Now why would he have done that...
What's happened since? Well of course the Reaganomic trickle-down economy has not turned out as well as the previous 40 years, ESPECIALLY for wages, the basis of revenue for SS. Part of Reagnomics is huge cut in tax rates on the wealthy, corporations, investment income, not so much on poorer people (who may have actually seen tax increase because of the increase in payroll tax).
So, in effect, ordinary taxpayers invested in the wealthy by giving them huge tax cuts, and the wealthy were supposed to return an endlessly growing economy, a rising tide that would lift all boats, jobs for and with a future. But instead the wealthy did these things:
1) outsource, outsource, outsource
2) cash out at the low rates and build guilded age mansions
3) predatory finance, healthcare, ...
4) political "speech"
Time for clawback, or at least drop this counterproductive social investment program of undertaxing the wealthy. They aren't delivering, it's a money pit.
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