The Perils of Payroll Tax and Pension Holidays
8 February 2012 |
I grimaced when the federal government decided to continue the payroll tax holiday for at least two more months in 2012. Sure, people can use the cash and it is an efficient way to stimulate consumer spending. But it worries me that nothing is being done to address the long-term financial health of Social Security and Medicare.
The federal government could learn a great deal by looking at what has – and has not – worked to ensure sound funding of state and local pensions.
The sooner we get serious about our long-term obligations, the better positioned we’ll be to keep our retirement promises.
Want the facts about state and local pensions, state and municipal bankruptcy, and municipal bonds? “Facts You Should Know,” http://tiny.cc/n6ehq
Good, concise article on a difficult structural issue.
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