Social Security Reform

Memo to Congress: Social Security is a form of insurance, a guarantee that, no matter what direction a citizen's fortunes take, after a lifetime of labor he or she will not suffer an impovershed old age. If someone is already lucky enough to enjoy a particularly high salary, there is no rationale for gifting them the additional benefit of exemption from Social Security taxes. Social Security obligations currently max out at $90,000. Raise the cap to $1,000,000. End of problem.

The Center for Budget and Policy Priorities analysis of the Bush plan shows that private accounts won't make Social Security solvent and is economically unwise: <http://www.cbpp.org/2-2-05socsec4.htm>

New York Times columnist Paul Krugman describes the Social Security scheme as the latest ploy in the conservatives' "Starve the Beast" gambit. "The attempt to 'jab a spear' through Social Security complements the strategy of 'starve the beast,' long advocated by right-wing intellectuals: cut taxes, then use the resulting deficits as an excuse for cuts in social spending. The spearing doesn't seem to be going too well at the moment, but the starving was on full display in the budget released yesterday." <http://www.commondreams.org/>

The Center for American Progress has crafted a detailed alternative plan to really protect Social Security in a way that's safe and sustainable: <http://www.americanprogress.org/>