George Gilder Saves Social Security — Supply-Side Economics Redux
I am always amazed how market fundamentalists are able to use any problem — real or imagined — as an excuse to carry out their desired polices, even if they will make the problem worse.
“Lower tax rates will yield the additional revenues and borrowing power we need to sustain social programs for the aged for decades to come. As a pay-as-you-go transfer scheme, Social Security is currently working fine. But we have to stop driving aged workers out of employment through implicit Social Security taxes on their incomes. As a key first step, we need to reduce the payroll tax by at least a third — at least to the degree we are pretending to build up “reserves” for the future. Lower payroll taxes will mean more jobs and income for Americans of all ages, and build up the real capabilities as opposed to the mere accounting balances of the U.S. economy. Ideally, as part of a flat tax program, we should eliminate the payroll tax altogether.”
Gilder, George. 2007. “Economics Is Not For Actuaries.”Wall Street Journal (2 January): p. A 23.