How is social security in the US at risk of running out of funding, if every tax payer pays into it?
In: 1004
Because the US government has set the tax rates so that they get less money in taxes than they spend.
If your income is smaller than your expenses, you need to go into debt and borrow money to keep going.
It is different for countries than people, but the basics of money in and money out needing to match stay the same.
Part of the problem is that taxes are unpopular and taxes on people with money are unpopular on the people who help get politicians elected.
Another issue is the persistent idea that there is a point where you can increase the amount of tax revenue by lowering taxes, this may be true in theory in some cases, but certain politicians act as if it is always the case.
Also the IRS needs money to ensure that everyone actually pays their taxes as they should. This is normally not a problem as every dollar spend on the IRS gets you an estimated $12 in taxes at this point. So giving them more money to do their job should be a no-brainer.
Of course giving the IRS money to do its job is deeply unpopular with rich tax cheats.
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