It’s a simple question that progressive types – and many non-Washingtonians, for that matter –ask themselves all the time: If Social Security needs more money in coming decades, why not just raise the payroll tax? It’s how we’ve done it in the past, why can’t we just do it again? The reason is that the far right and the center-right – Washington’s Very Serious People – have agreed that the low-tax regime they’ve collaborated on putting in place for the affluent is here to stay, along with the income inequality it’s helped to spawn. There will be no further increases, even in a comparatively un-progressive levy like the payroll tax, they insist.
It’s not news that you can’t mention the words “tax increase” in Washington without someone attaching an epithet like “job-killing” or “politically unpopular” to them as a matter of reflex. This goes for the payroll taxes that fund Social Security as for any other tax. House Budget Committee chair Paul Ryan says Continue reading It’s All About the Taxes
Contrary to the conventional wisdom, “saving” Social Security doesn’t have to just be about making more fiscally “solvent.” It can also link up with efforts to raise wages, make the program more equitable, and even to start rebuilding the U.S.’s crumbling infrastructure – without privatizing it. In fact, there are a multitude of ways to make Social Security more secure – none of which involve cutting benefits for hard-pressed working people and retirees.
I’m giving over this post to John Burbank, executive director of the Seattle-based Economic Opportunity Institute. He lays out a menu of changes that would improve Social Security benefits and pay for them in a way that would make the program – and its funding – more equitable. I met John at the National Academy of Social Insurance conference earlier this month, Continue reading “Rebuilding the Foundation” of Social Security, Chapter 1
What does it mean that the U.S. no longer has a permanent tax code? That every major tax Americans pay, including income tax and the payroll tax covering Social Security, is now a temporary measure subject to — effectively — mandatory revision by Congress in the next one to two years? With passage of the Obama-McConnell “stimulus” package, American government is entering a fun-house period like no other in its history.
The tax cut/stimulus bill passed, of course. Indeed, the skids were really greased on this baby (to use then-Treasury Department official Bob Rubin’s choice phrase) like nothing since the 1983 Amendments to the Social Security Act. Here’s how the Wall Street Journal describes the situation we’re about to be living under: Continue reading The Payroll Tax: Just Another Tax?
Rep. Jan Schakowsky’s deficit reduction proposal is a game changer: a serious, moderate, balanced blueprint for addressing the nation’s long-range fiscal challenges, by a leading progressive lawmaker. How her colleagues on the president’s deficit commission respond to it will be a test of how serious they really are about solving the deficit puzzle in a fair and equitable way.
Jan Schakowsky is sometimes described as “one of the most liberal members” of the commission. But the deficit reduction plan she released on Tuesday is moderate, sensible, and actually more effective at lowering the deficit over the next few years than the plan co-chairs Alan Simpson and Erskine Bowles tabled last week ($427 billion in savings by 2015, vs. $250 billion). Continue reading Schakowsky’s Deficit Reduction Plan Is Game Changer
Separating fact from superstition about Social Security, social insurance, and mutual aid.