When we push lawmakers to privatize Social Security, we are pushing to regain control of our money. Then there are the thousands of state and local taxes, the strings on Gulliver s fingers and toes. In 1952, state and local taxes took up less than 7 percent of gross domestic product. Today that figure is close to 14 percent. Instead of fixing this by lowering rates, state and local governments use their powers to punish certain groups, increasing the burden on poor people through measures like cigarette taxes.
Cities compete and spend to attract or retain sports arenas.
Such metro mercantilists argue that they are retaining or bringing economic growth to their states or cities. But plainly their efforts are a zero-sum game. Citizens and businesses would be better off with lower rates overall. The Social Security debate is at heart a tax debate. When we push lawmakers to privatize Social Security, we are pushing to regain control of our money.