Leaving the payroll tax intact and reducing Social Security benefits for higher-income seniors is, in effect, an increase in marginal tax rates but it was clear from the discussion at this morning’s GOP Presidential debate that few Republicans see it this way. Still, it’s true. The way Social Security works is that you pay taxes when you’re working and you collect benefits when you retire, with the benefits proportional to what you paid.
Means Testing Social Security Is A Kind of Tax Increase