What do you think — should we fund Medicare out of general tax revenues rather than through FICA taxes?
Forbes post, “Does The Medicare Payroll Tax Still Make Sense?”
What do you think — should we fund Medicare out of general tax revenues rather than through FICA taxes?
Just read your Forbes post. I consult for the non-partisan employment policy NGO Get America Working!, which proposes payroll tax shifting (revenue neutral shift away from PRT and towards non-labor taxes/tax expenditure reductions) to unleash labor demand and boost job growth. We have looked at this, and there’s no unique magic in PRT revenue getting earmarked for SSTF — you can just as easily earmark non-labor revenues. We think that would put entitlement funding on a stronger, not a weaker footing, because it would no longer be distortionary and on a collision course with job growth. My latest piece on PRT shifting generally is http://www.gothamgazette.com/opinion/7598-the-problem-with-cuomo-s-payroll-tax but here’s one by Al From (Democratic Leadership Council) and Bill Brock (former Reagan DoL Secretary and GOP Senator) that says PRT shifting could be a better financing mechanism for Social Security: http://thehill.com/blogs/congress-blog/economy-budget/300713-rethinking-how-social-security-is-financed-to-foster-job Would love to know what you think re: PRT shifting and Medicare. I’ve talked with AARP and other groups about tax shifting and entitlements. They find the arguments intriguing (including PRT shifting effects on senior employment) though understandably don’t want to touch the PRT mechanism. There are ways around that, i.e. keep withholding but still do PRT shifting…