Social Security Tax Breaks - Beginning of the End?

The Obama tax cut legislation signed on December 17th not only provides windfall profits for the very rich but endangers the social safety net for millions in our society who most need it. Under the plan, social security taxes will decrease 2%, lowering the tax paid by workers from the current 6.2% to 4.2%. The government is in essence cutting the revenue stream for social security by about $120 millon dollars. The tax break is in effect for one year with the government making up the shortfall from the general fund.

While this will put a few dollars in the pockets of the working class, it will hardly make a dent in our our rapidly faltering economy. As for only being in effect for one year - well, we all know how that goes. After any tax break has been in place for a period of time an attempt to repeal or deny extension tends to appear as a tax increase to the general public. Not very popular politically.

Social security since its inception has largely been a pay as you go system, with one generation paying out benefits to the previous generation. It has never been a federal budgetary issue. The huge danger in this legislation is that social security (which contrary to some views is in fact solvent) must now rely to some degree on the general fund. As such the program must compete politically with hundreds of other programs also financed from the general fund. This opens the door wide for future benefit cuts to make up any social security deficit.

To quote Senator Bernie Sanders, I-Vt, "You're talking about the beginning of the end for Social Security."