Two steps forward
So I've been pretty pleased to see the Democrats get out in front in the battle to save Social Security, and general admissions all around that Bush's plan that has yet to materialize is probably going to go over like a lead balloon.
But this article in the Washington Post is a little maddening. It seems that the talk has shifted from funding Social Security by payroll tax to one of a national sales tax. That, of course, would help shift the burden more squarely on the low and middle class shoulders. But for now, that debate will be set aside. Josh Marshall points out, however, the difficulties this debate would bring:
Hypothetically, if the whole payroll tax system were scrapped or fundamentally changed, there'd be no clarity on what sort of plan was diverting money from Social Security taxes or not, since the whole funding base of the system would have been done away with and replaced with something else.
More worrisome is the idea that Democrats would support private accounts on top of the current system. While I have no problem with people owning private accounts, forced government accounts would actually give people less control of their money. Because the government would mandate what is otherwise known as private investment.
Josh Marshall, again:
In the Post's description, "Social Security would remain essentially unchanged as a stable, defined retirement benefit, but benefits could be slightly reduced and taxes slightly raised through a variety of mechanisms to keep it solvent as baby boomers retire." And then they say McCrery calls this assessment "right on."
So wait, have McCrery and Thomas just ushered the entire Republican majority into the Conscience Caucus? They're agreeing to leave Social Security intact as a defined benefit, near-universal government program and they'll set up private accounts with new funds from somewhere else?
Somehow I doubt that's what they're agreeing to.
I'd have to agree. Any step toward government mandated privatization could only be seen as a step toward the dismantling of Social Security because, they would argue, there is no reason to have both Social Security and these private accounts to plan for the future.
Both proposals hint at something bigger coming down the line that will give the GOP their rally point and will have nothing to do with the current crisis debate. Hopefully, we'll all be ready.