199 comments on DrumBeat: June 29, 2006
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westexas on June 30, 2006 - 7:13am
My proposal is that we fund Social Security/Medicare with a tax on energy consumption.
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mcain6925 on June 30, 2006 - 6:42pm
I have no problem with this. The EIA puts current spending on energy at about 8% of GDP. Current spending on SS and Medicare is about 6% of GDP, so we need roughly a 75% tax on top of current energy prices. Being self-employed, and probably making less than $93K this year, I'm paying 15% of my earned income in payroll taxes. If I can drop that in return for an energy tax that looks like about 6% of my income, I'll be better off than I am now. The poorest workers, who spend more of their household income on energy than the average, will be worse off. Poor pensioners, who pay no payroll taxes and little income tax, will be substantially worse off.
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