How are “taxes earmarked for social security” accounted for?
(See PG 11.14) In the NHA, taxes that are earmarked for social security are allocated to the source groups that paid them. Employers are the source of the taxes they pay, and households are the source of taxes paid by employees. The reason for this treatment is that such taxes are in essence a form of premium, and should be treated in the same way as premiums paid to private social insurance or voluntary medical insurance. Taxes used to support other government health care programmes are counted as general revenue, which is attributed to government as a source.
