For most Americans the Social Security tax is one that cannot be evaded or even reduced. Not so for state and local governments; unlike private businesses, they are free to pull themselves and their employees out of Social Security if they choose. In the past two years 138 cities, counties and other jurisdictions, including Alaska, have given up their memberships in the Social Security system, and another 207 government units have declared their intention to do so. Last week Mayor Abraham Beame announced that New York City, the biggest local government of all, would join the dropouts, and New...

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