| :East Valley Tribune; |
:May 8, 2005; |
:Perspective; |
:96 |
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Nonpartisan Social Security plan gets partisan brushoff
- CONTACT: (480) 898-6507 Fax: (480) 898-6362 Mail, P.O. Box 1547, Mesa, AZ 85211 or bschuster@aztrib.com
In case you haven’t noticed, the national debate over the future of Social Security has taken a bizarre turn. And it’s not that as the public has soured on the private investment accounts President Bush has been trying to sell the past few months, Bush has started talking about other reforms, including applying a means test to benefits.
The odd twist is that Democrats, who’ve traditionally embraced means tests for just about every federal program to keep "the rich from profiting at the expense of the poor and middle class," are attacking Bush’s means-test proposal.
I take it as further proof that the Democrats are locked into a bash-Bush mode no matter what the president proposes — even if it‘s in line with traditional Democratic philosophy. And it’s a shame, because there’s much merit in what Bush and some other conservatives are proposing that sounds very Democratic.
Although Social Security is perhaps the most popular federal program, its tax structure is regressive. It’s a flat tax that proportionately overtaxes low-income workers while providing a nice cutoff point for high-income workers. And at retirement, millionaires receive benefits at least as generous as low- and middle-income retirees.
Conservative syndicated columnist George Will suggested on these pages a few weeks ago that Social Security reform include lifting the income ceiling on FICA payroll taxes. That would bring the payroll tax system more in line with the progressive nature of the rest of the federal tax system that requires the well-to-do to pay a larger share than people of more modest means.
Now Bush is proposing putting reasonable limits on benefit increases for future middle- and upper-income retirees while ensuring lowerincome retirees maintain the safety net that Social Security was originally intended to provide.
With Social Security headed toward a fiscal train wreck — and it is, make no mistake about it — what’s wrong with such sensible proposals? Nothing. But congressional Democrats claim it’s another Bush assault on the middle class.
For clear-thinking Americans — that is, those not captives of partisan politics — a promising recipe for Social Security reform includes lifting the earnings cap on the payroll tax, means-testing benefits and allowing younger workers the freedom to invest some of their payroll taxes in the free enterprise system that powers this great nation.
But is Congress capable of such clear thinking?
