Wednesday, October 19, 2011

Thoughts for the day...on the "Cut Social Security and Medicare that drive deficits" hype

From Dean Baker:

(I)t would take just 5 percent of the projected wage growth over the next 30 years to make the Social Security trust fund fully solvent for the rest of the century.

Health care costs are projected to take more of people's income, but this is far more the result of our broken health care system. If we paid the same per person for our health care as other wealthy countries we would be facing enormous budget surpluses in the decades ahead. If our per person costs were the same as the average of other wealthy countries it would free up more than $1.2 trillion a year ($4,000 per person) for other uses.

The impact of Herman Cain's "9-9-9" tax plan... one REALLY LONG graph, via Jared Bernstein and the Tax Policy Center.

Cain:"Stupid people are ruining America!"
Presidential aspirant, book tour star and pizza Godfather Herman Cain has a tax plan that raises taxes on the bottom 80% of the population.

The working poor see their taxes raised nearly $2000 on average.  Most Americans who have jobs will see a tax increase of around $4000 - while the top 20% of earners will see a tax reduction of over $14,000 on average.  But even that average distribution is deceptive.  What's most startling is how Cain's plan benefits the top 1% - and even more amazing, how his plan cuts taxes on the top 10% of that top 1%: