Monday, November 28, 2011

beware this thin edge of the wedge goo goos.....: Limit future increases in transfer payments to affluent households

watch the definition of affluent and whether its indexed to inflation

the strategy is to turn all transfer systems into anti poverty programs

take this dodge ball
" in 1979, households in the lowest income quintile received 54 percent of all transfer payments. In 2007, those households received just 36 percent of transfers."

generational wedge

"In effect, Social Security and Medicare have been transferring money from low-earning young people (who don't pay income but are hit by the payroll tax) to increasingly affluent old people"