by Locker Room contributor
First, I don’t know how many people consider Social Security or any
other taxes when they debate having children. In addition, a payroll
tax cut could still mean a tax increase unless it is also exempted from
the higher income tax rate.
I’m also not sure how many people consider income tax credits as
compensatory for payroll taxes. Money may be fungible, but tax cuts are
not seen that way–receiving a tax cut or credit in one area does not
generally affect the perception of taxes in another unless they are
linked in the proposal (e.g., raising the sales tax while
cutting property taxes for revenue neutrality). Finally, future
payments for Social Security will eventually come from income taxes
and, as the author has noted before: “taxes will be raised and benefits cut, one way or another.”
The bigger issue to me is whether parenting in general, and keeping one parent home in particular, is penalized in the tax code.