Is the Social Security Fraud Drawing to a Close?

[Valin]

Power Line:

John Hinderaker
8/25/11

Social Security, not Medicare or Medicaid, is the crown jewel of the entitlement state. For several generations now, it has been sold to voters as a more or less sacred compact. Many Americans still believe that the federal government maintains an “account” in their name, which contains assets. Some even think that their “account” contains their own contributions, carefully set aside for their retirement by Franklin Roosevelt or his successors. If this is not the biggest fraud in the history of the human race, it is certainly in the top five. Inexorable demographic realities are casting the shadow of extinction over Social Security; ironically, though, what may set the program’s demise in motion is a cheap political trick by the Democratic Party.

Last December, as part of a budget deal, the Democrats negotiated a temporary 2% cut in the employee’s portion of the payroll tax. Many economists argued that this was an inefficient tax cut, and it certainly contributed to federal deficits. But the politics of the payroll tax cut were powerful. Nine months later, the temporary payroll tax cut is about to run out, and the Democrats are trying to make a political issue out of extending it. This headline is typical: “The GOP will raise taxes — on the middle class and working poor.” “Raising taxes” means allowing a temporary cut to expire on schedule. So at least we have established a principle: if the Bush income tax cuts expire, that too is a tax increase.

(Snip)

Mikulski and Ellison were, I think, correct. As it becomes more obvious that Social Security is financially unsustainable, calls to reform the program will be irresistible. The most obvious reforms are to 1) increase the age of eligibility–that, essentially, is a done deal–and 2) means test the program. Once inadequate revenues lead to means testing, Social Security is just another welfare program, and we all know how popular they are. So the smarter Democrats are right to worry that short-term political gain from payroll tax cuts will ultimately undermine the viability of Social Security.

(Snip)

[Pepper]

Valin! Thanks

 

good article:

Call their bluff….heighten the contradictions! Raise the ante–permanent abolition of the payroll tax! What? It’s tax justice now but 10 months ago (and beyond to 1939) it was just swell? This is just so obvious an opportunity to hoist them on their own petard…and yet…the dumbass Republicans are giving the left an opportunity to do it to them!