Krugman: Just Say No (*'s Faltering Soc Sec Scam)

[RamboLiberal]

http://www.nytimes.com/2005/03/01/opinion/01krugman.html?hp=&pagewanted=print&position=

President Bush's effort to hustle the nation into dismantling Social Security as we know it seems to be faltering: the more voters hear about how privatization would work, the less they like it.

As a result, some Republicans are reported to be talking about a compromise in which they would agree to some kind of tax increase, probably a rise in the maximum level of earnings subject to the payroll tax. They would offer to use the revenue from that tax increase, rather than borrowed funds, to establish private accounts, thereby assuaging fears about the huge debt buildup that would take place under the administration's plan. They might even agree to make private accounts an add-on to traditional benefits, not a replacement.

But it would still be a bad deal. Creating private accounts in the current environment, no matter how they are financed, would be a mistake.

First, think about the fiscal implications. We have a huge budget deficit, largely caused by Mr. Bush's decision to cut taxes while waging war. Any realistic plan to bring the budget deficit under control will have to include tax increases, especially if we want to avoid the harsh cuts the administration is trying to impose on Medicaid and other essential programs.

There may be a place for a rise in the payroll tax maximum in such a plan: AARP, among other groups, has proposed such a rise as one way to improve the Social Security system's long-run finances. Devoting the extra revenue to the trust fund would also reduce the overall budget deficit.

[Cha]

1. I like the way..Krugman spells it out..

"hustle the Nation into dismantling Social Security"!

bush got away(seemingly)(but maybe not)with taking the country to war on Iraq..now he thinks he can do away with FDR's Social Security.

[beltanefauve]

2. And I like how Krugman

zings Lieberman while he's at it!

[priller]

3. Lieberman is a fool

if he thinks he can work with the Pukes. Krugman spells it out very clearly -- whatever compromise they give Joe will be tossed out by the Pukes in committee. And even worse, they'll also toss out increasing the tax cap. That will put Joe in the position of voting against his own bill because it didn't include a tax increase. A perfect way to turn a winner into a loser.

[tom_paine]

4. kick

:kick:

[libodem]

5. I'm glad this kind of talk is out there!

They just want to spend the taxes off the middle classes back. That is our tax money. To promote for the general welfare. Not their huge money stockpile to gamble in the stock market with, while making a profit. I suppose the same people who bought WMD's will buy this, too. Why don't they know they lie?

[teryang]

6. Staying focused on this issue is smart

...in so many ways.

:kick:

[sadiesworld]

7. Note that Krugman is opposed to raising the cap. n/t