Comments on: WSJ: Nancy Pelosi Already Has What She Wants (Plus a BIG Extra Point on Social Security) http://www.bizzyblog.com/2006/12/20/wsj-nancy-pelosi-has-what-she-wants-plus-a-big-point-on-social-security/ The Business End of the Blogosphere Sun, 14 Mar 2010 17:27:01 -0700 http://wordpress.org/?v=2.8 hourly 1 By: TBlumer http://www.bizzyblog.com/2006/12/20/wsj-nancy-pelosi-has-what-she-wants-plus-a-big-point-on-social-security/comment-page-1/#comment-63055 TBlumer Thu, 21 Dec 2006 13:02:27 +0000 http://www.bizzyblog.com/2006/12/20/wsj-nancy-pelosi-has-what-she-wants-plus-a-big-point-on-social-security/#comment-63055 #1, your last para makes an excellent point. Along those same lines, the Fair Tax people (national sales tax replacing income tax--fairtax.org) like to point out that a Fair Tax would be less volatile revenue-wise than the income tax system is. #1, your last para makes an excellent point. Along those same lines, the Fair Tax people (national sales tax replacing income tax–fairtax.org) like to point out that a Fair Tax would be less volatile revenue-wise than the income tax system is.

]]> By: meep http://www.bizzyblog.com/2006/12/20/wsj-nancy-pelosi-has-what-she-wants-plus-a-big-point-on-social-security/comment-page-1/#comment-62995 meep Thu, 21 Dec 2006 09:55:54 +0000 http://www.bizzyblog.com/2006/12/20/wsj-nancy-pelosi-has-what-she-wants-plus-a-big-point-on-social-security/#comment-62995 You don't need to tell me this. I had to run projections on this stuff for work - we had made a retirement calculator, which projected Social Security, DB pensions, DC accumulations annuitized, etc. I'm not a pension actuary (I do annuities, but I don't analyze DB pension plans), but I've seen various pension funding methods, all of them legit...and the method used for Social Security is pretty much a sham. But you know that. I had to explain it to a co-worker that those IOUs in the Social Security "Trust Fund" are totally bogus, and that tax is tax is tax. The money all goes into the same pile. Here's what bugs me about these progressive taxation schemes: they're very volatile. If you have 35% of your revenue dependent on what 1% of the people get, and generally that 1% of people get income that's highly dependent on the business cycle...not good. Is it any wonder that most localities prefer to tax sales and property values? Those are much more stable. You don’t need to tell me this. I had to run projections on this stuff for work – we had made a retirement calculator, which projected Social Security, DB pensions, DC accumulations annuitized, etc. I’m not a pension actuary (I do annuities, but I don’t analyze DB pension plans), but I’ve seen various pension funding methods, all of them legit…and the method used for Social Security is pretty much a sham. But you know that. I had to explain it to a co-worker that those IOUs in the Social Security “Trust Fund” are totally bogus, and that tax is tax is tax. The money all goes into the same pile.

Here’s what bugs me about these progressive taxation schemes: they’re very volatile. If you have 35% of your revenue dependent on what 1% of the people get, and generally that 1% of people get income that’s highly dependent on the business cycle…not good. Is it any wonder that most localities prefer to tax sales and property values? Those are much more stable.

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