Mr. Krugman recently responded to those that are pointing out that almost half of all Americans pay no income tax. It is a fact that roughly 47% of Americans pay no income taxes at all. Yet what is the basis for Mr. Krugman's rejoinder? Social Security [or FICA] taxes.
Apparently Mr. Krugman didn't do well in forensics class. We are discussing income taxes not total taxes.
Mr. Krugman apparently didn't do well in basic economics class either. I find that a bit surprising given the area of expertise for which he was awarded the Nobel Prize.
The fact is that your total Social Security tax rate must include any Social Security benefits that you may receive. Currently, the vast majority of retirees have a negative Social Security tax rate. Put another way, they receive more in benefits during retirement than they paid in taxes over their working lifetime.
Special note for those of us under 50. The Social Security system is $8trillion in the hole. Don't expect to get the same sort of benefits when you retire.
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