Tag: "Unfunded Liabilities"

Arguments Against the Payroll Tax Holiday

As I have previously written, the 2-percentage point payroll tax deduction is a bad idea.  The current reduction expires March 1, but it appears that enough Congree members support extending it through the rest of the year.  It is a shame that despite warnings from the annual Social Security Trustees’ reports, even those who support entitlement [...]

Feb 17, 2012 | 2 comments | by

SOTU: Winners, Losers and a Tax Plan that Makes Me Go “Huh?”

I watched last night’s State of the Union address in hopeful anticipation that all taxpayers, from individuals to small business owners to multinational corporations, could look forward to a fairer, more simplified system.  No such luck.  Much of the speech was spent pointing out who or what is to blame for the sluggish economy, income [...]

Jan 25, 2012 | 4 comments | by

A Thoughtful Look at Social Security Reform

Bobby: “Psssst. Don’t tell anyone. It’s our secret! There’s an elephant in the living room, but we’re pretending it’s not really there and it’s not really an elephant.” Billy: “But it smells and it’s enormous!” Bobby: “Just ignore it. Maybe it will go away.” (Source:  Diane Hunter, “Elephant in the Living Room, Acknowledging Alcoholism Can [...]

Nov 17, 2011 | 5 comments | by

Pension Funds: What Not to Do

A word to the states and the people:  ignore what the federal government is doing in terms of how to manage a budget.  Among the dire predictions about the solvency of state and local employee pension funds (see our NCPA study on this topic), Treasury Secretary Timothy Geithner recently announced that unless the debt ceiling was [...]

May 20, 2011 | 1 comment | by

Is Some Serious Entitlement Reform on the Way?

Some preliminary recommendations from the White House Debt Commission were released.  (See NYT article, “Panel Seeks Social Security Cuts and Higher Taxes“).  While these recommendations are yet to be negotiated among commission members for release in a final report, they at least represent a willingness of members to consider the elephant in the living room:  [...]

Nov 11, 2010 | 8 comments | by

California’s Dreamin’ if Lawmakers Think Their State’s Pension Is Sound

What a sad time in California legislative history.  The opportunity to pass tough but meaningful pension reform has resulted in the passage of a bill akin to throwing a bucket of water on a blazing inferno.  (See Barbara Hollingsworth, “California Rejects Even Modest Pension Reform,”)

Aug 27, 2010 | Leave a Comment | by

Unrealistic Medicare Projections are No Joke

New on the blog!  A corny economics joke: “How many economists does it take to change a light bulb?”  Answer:  “One, if you assume a ladder.” If you fail to see the humor, this joke reflects the sometimes dubious assumptions in economic theory when making predictions and forecasts.  The latest example is the just-released Medicare [...]

Aug 06, 2010 | 1 comment | by

Underfunded State Pensions, BP, and the Blame Game

If the latest proposed class action suit picks up speed, shareholders of British Petroleum will be in worse shape than they are now. The Wall Street Journal reports that public pension funds in New York and Ohio are considering a class action suit against BP, citing that the company allegedly misled them about the protocols it had in [...]

Jul 29, 2010 | Leave a Comment | by