Social Security isn't funded by income tax, so it's difficult to count it in total spending, especially as it relates to EITC. I think this is a mistake, because we're heavily taxing low earners (as there's no exemption for paying SS tax), then giving them an credit on their income taxes. I would prefer to do away with payroll taxes altogether, as I think they're pernicious. We can argue all day about the merits of a flat vs. a progressive tax system, but I think most rational people would agree that a regressive tax (and SS is very regressive) is unhealthy for the economy. What's worse is that they hide half of it by making your employer pay on your behalf. In my informal anecdotal evidence, it seems to me that most people don't know how much they're paying (and they don't know that there's a cap after which income isn't taxed). To me, before we can even talk about what to do with income taxes, this should be addressed.