It’s a simple question that progressive types – and many non-Washingtonians, for that matter –ask themselves all the time: If Social Security needs more money in coming decades, why not just raise the payroll tax? It’s how we’ve done it in the past, why can’t we just do it again? The reason is that the far right and the center-right – Washington’s Very Serious People – have agreed that the low-tax regime they’ve collaborated on putting in place for the affluent is here to stay, along with the income inequality it’s helped to spawn. There will be no further increases, even in a comparatively un-progressive levy like the payroll tax, they insist.
It’s not news that you can’t mention the words “tax increase” in Washington without someone attaching an epithet like “job-killing” or “politically unpopular” to them as a matter of reflex. This goes for the payroll taxes that fund Social Security as for any other tax. House Budget Committee chair Paul Ryan says Continue reading →