State(MA) sees burden in Bush funding idea (Tax Public Employees SocSec)

[RamboLiberal]

http://www.boston.com/news/local/massachusetts/articles/2005/03/07/state_sees_burden_in_bush_funding_idea?mode=PF

President Bush is considering a controversial new source of revenue to help fix Social Security: shutting off the exemption from Social Security taxes of future state and local public employees who otherwise would be contributing to public pension plans.

For Massachusetts, where more than 300,000 public workers are exempt from the Social Security tax, the change could end up costing taxpayers billions of dollars, according to state officials.

One proposal under discussion at the White House would preserve the exemption from Social Security tax for state and local workers who do not have to pay it but would cut off the exemption for new workers.

If the proposal were enacted, state and local governments would have to compensate for the decrease in money flowing into pension plans from new employees. In addition, state and local governments would have to start paying millions a year as the employers' share of Social Security tax.

[mom cat]

1. Didn't dimson promice "no new taxes", or was that just "no new taxes

for the filthy rich"? :puke:

[TahitiNut]

2. So much for "States' Rights"

It's fascinating how rapidly the Reichbots can don and remove the cloak of "Constitutional principle" whenever they feel like it.

It's also remarkable how they avoid and evade the one absolutely certain approach to increasing FICA tax revenues: increase the Federal Minimum Wage, and reverse the declining income equity of the working class.

[MAlibdem]

3. Wow, want to drive down the quality of state employees more?

Give them a pay cut equal to social security taxes. Already people can make more in the private sector. To get people to work in public service, they need good benefits, assured employance with competence, and a reasonable stadard of living. Want to get a government that works less for the people? Lower the quality of its workers.

[DemocracyInaction]

4. State and Local Employees CANNOT draw SS because it's

two government pensions. Right now, like me a former teacher, lots of these people have had to pay SS through extra jobs they have held or jobs while working way through college, etc. and they can never claim one dime of social security. Soooo, if he's going to tax them, does it mean they will remove the exemption and allow them to collect both their SS payments upon retirement AND their state pensions??? I bet not. What they are really looking for is the states dumping their pension funds into Social Security and having no more pension funds. Easier if everything is in one place when they finally take it all and run and leave the people broke.

[David__77]

5. In California, state employees do pay into Social Security.

This isn't in every state. We here, teachers and other public employees, can draw a state pension and Social Security--there's no law against that. The question is that some states have exempted their employees.