teapartyeconomist.com / By Gary North / January 14, 2012
The mainstream media are filled with stories about the surprise experienced by American workers this month. Social Security’s FICA tax will rise by two percentage points this year.
It turns out that workers forgot to budget for this. They did not know that they would be pushed over their own personal fiscal cliff. They thought the tax hike would only affect rich people.
What’s this? You mean lunches are not free? You mean somebody has to pay for granny’s retirement? Will wonders never cease?
Of course, the present value of the gap between the promises made by the government and the taxes expected to be collected is now $222 trillion for Social Security and Medicare. But this does not faze Congress. Congress will deal with that later. For now, two percentage points will have to do.