Townhall - Extending the payroll tax cut -- as the GOP leadership has now agreed with Democrats to do -- may be good politics, but it is lousy policy.
Payroll taxes of currently employed workers end up paying for the benefits of current Social Security recipients, with any excess retained by the Social Security Trust Fund. But because, on average, Social Security recipients receive more in benefits over their lifetimes than they and their employers contributed in taxes during their working years, the system functions only because there are enough current workers making additional payments into the fund. This is why some people describe Social Security as a giant pyramid scheme. Read full column here: News New Mexico