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Wednesday, June 18, 2008


No I didn't google myself (haven't done that in ... weeks)

In a comment at Krugman's blog I claimed that the present value of increased revenues from Obama's proposed donut increase in FICA is roughly equal to the present value of lost revenues due to his make work pay income tax cut and that the two reforms are part of a disguised effort to make the payroll tax progressive (stealth class war).

Krugman just wrote a post in which he wonders where Obama will get the money for health care reform. I was about to write a one word comment "FICA" when I panicked and decided to check that my claim was about right. I googled : obama payroll tax donut revenue present value. I got a great sounding hit right at a very authoritative source

Omigod Krugman has already noted it. Blush. So I clicked and found my comment its own self.

So I have confirmation from myself that my guess is correct.

Oh and another hit, the money from FICA roughly balances the cost of making work pay (hundred billion here hundred billion there) according to James Pethokoukis who, like me, suspects that the social security tax increase has little to do with pensions.

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