letter to the editor in the C-J on SS

The C-J published my letter to the editor yesterday...

The solvency of Social Security is a legitimate but exaggerated concern (Dreier and Cohen, Sunday's Forum). The larger and usually overlooked issue is the oppressive burden the program places on the working poor and the middle class-- through its 12.4% payroll tax on every dollar they earn and the pathetic rate-of-return it affords them as a retirement program.

A lot of people miss this because they imagine that the firm is paying "their half" of the tax. But we don't believe that the local gas station is paying the excise taxes on gasoline. Similarly, firms shift the burden of their share of the payroll tax to workers through reduced wages and fringe benefits.

As a result, a family of four with earnings at the poverty line loses more than $2500 to the payroll tax. A middle class family earning $50,000 loses more than $6,000 to payroll taxes. The resulting rates of return are anemic-- and even negative for African-Americans, given their shorter lifespans.

One might support Social Security as a necessary evil. But avid support which ignores its staggering costs is not helpful.