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final review - Social Security Payroll tax Social Security...

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Social Security – Payroll tax – Social Security is funded through a payroll tax with equal employer and employee contributions. A portion of a person’s paycheck is taken out and put into social security. The payroll tax makes recipients of Social Security feel deserving because of their previous contributions, and it has made Social Security popular. Pay-as-you-go system – This is a system where the money contributed in payroll taxes pays benefits for current retirees. Contributors do not have special accounts that are earmarked for them. Targeting within universalism – programs provide benefits to everyone but gives a disproportionate amount to people at the bottom of the economic ladder, spread costs and deliver benefits across classes, sustained moral imageries of “deservingness” Indexation – government benefits are linked to inflation, cost of living adjustment, related to social security and welfare, signif. Social security is indexed while welfare is not indexed – monthly check buys less and less PRWORA – Personal Responsibility and Work Opportunity Reconciliation Act, enacted in 1996 (Democratic President Clinton approved a relatively conservative bill), abolished Aid to Families with Dependant Children (AFDC), replaced AFDC with TANF (Temporary Assistance for Needy Families), work required, states had rights to distribute money, time limits; represented a “cutting back” of benefits to recipients compared to social security Dual clientele trap – This is a welfare policy that serves 2 constituencies – poor children and their parents. serve poor children and parents of poor children, parents are not sympathized with as much as the children, helping children rewards parents’ bad work ethic Money trap – reform usually requires short-term increased spending, bad campaign platform, welfare policy, indication that you can’t get something you want without getting something you don’t want, ex. Long term benefits with short term costs (education) “End welfare as we know it” – 1992 presidential campaign and Clinton’s pledge to “end welfare as we know it”, democrat who claimed to not spend as much as other Democrats Harris Wofford – story begins in 1991, with a Pennsylvania special election to the US Senate, Democrat Harris Wofford wins a surprising upset victory, pundits interpret his victory as a sign that health care reform is politically popular
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“Harry and Louise” – opposition campaign to health care reform, grassroots mobilization including the famous “Harry and Louise” ads Health Security Act – after winning the 1992 election, Clinton formed a task force on
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