Why can the government reduce our taxes to offset the proposed 2% increase in Social Security deduction?
The proposed 2 percentage point increase in the Social Security contribution rate is part of a privatization proposal that would use the increase to finance private investment accounts. It would be possible to provide an off-setting income tax reduction but this would reduce revenue which is used to pay for other government spending. This recommendation could be made to your Congressional Representative and Senators for their consideration during the Social Security reform debate.
