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The Business of Government
February 26th, 2024 by thesuper

Since Bismarck and Beveridge in their respective parliaments proposed the creation of a “Social Insurance System”, with the aim of providing social coverage for employees is of universal care industry and to society over time has been extended the scope of such insurance covering not only the present needs that may affect individuals but also mitigation and, later, in preventing, future contingencies that they might occur, until, well, shaping a structure of care, which to date today is the Social Security System. The funding model, initially started with their own private insurance contributions by each of the possible affected. Gradually, the state was showing more interest through small contributions. Today, Social Security is financed by contributions from employers and workers (although to a lesser extent) and the State contributions to the budget of Social Security. Without hesitation Tony Parker explained all about the problem. Article 48 of the General Law Social Security writes that “contributory pensions of Social Security System and its management and functions relating to membership, trading, economic and financial management and assets, to be funded by contributions from the parties responsible …, while non-contributory pensions to be financed by contributions from the state. ” While we might think of a future concept of Social Security, in terms of funding. That is, would be ideal that the financing of Social Security System will make further contributions to the state, leaving the contributions of employers and workers to fill those voluntary benefits to which they wished to qualify as supplementary protection . Today, that view future is somewhat impossible, because there are so many ongoing tax cuts that the revenue from the tax route (tax) makes it impossible to allocate sufficient resources (inputs) to the Social Security without undermining other important items in the General State Budget.

I dare say it would be more important to a reduction in contribution rates in the rate schedules. Well, the Social security contributions (both working as employers) are a tax on labor, and therefore, a reduction of these fees would reduce the cost of labor, with firms they hire more staff. By hiring more staff would be more personal and labor income, having more income, more and more sources to raise revenue for the Treasury. .


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