By stating that the immigration bill before congress will lower the federal deficit over the next ten years, President Obama has put an end to the belief that Social Security is a use tax with receipts going toward paying for contributor retirement.
It is a most regressive 12.45 percent income tax.
The Congressional l Budget Office (CBO) is correct in saying welfare costs associated with making illegal immigrants legal will be less than amounts paid into social security and because our cash based federal accounting system doesn’t measure the cost of the accrued liabilities associated with immigrants paying said taxes.
Gasoline taxes and seaport use taxes were instituted to keep our infrastructure world class but they also go into the general fund creating an accrued liability to be paid for with increased future spending or lower future income because of poor infrastructure.
Social Security, its sister tax Medicare and many of our use taxes go into the general fund where they are used as bribes to citizens to get votes and keep elected officials and their party in control.
Our spend before spend philosophy is a broken record. The Federal Government was created when business interest wanted freedom from England for mercantile reasons so said government borrowed to fight the Revolutionary War. The war over, the new Federal Government we tried to levy a whiskey tax to pay war debt, rural farmers who sold product locally revolted. Troops went in and the tax was paid.
Our country was started with spend first and tax later.
