Beginning of the End for Social Security
The following is an excerpt from an interview on Democracy Now Thursday, December 16, 2010 with Representative Rush Holt. Here he explains in simple understandable language how the enemies of the American people finally win the war.
Here’s the link for the complete interview:
REP. RUSH HOLT: But you heard the President say, well, in a compromise, we have to sacrifice some things we care about. I’m not willing to sacrifice Social Security. And I’m concerned that this does real damage, does violence, to the rationale for Social Security. Apart from what it does to the financing of Social Security, which can be made up in future years, it does, I think, irreparable damage to the very idea of Social Security. It puts Social Security on the table as a bargaining chip along with the alternative minimum tax, the debate over whether the Bush tax cuts should end at $250,000 or a million dollars income, and with business expensing and estate tax rate. In other words, it’s just a bargaining chip, it’s just another item. And, you know, ever since 1935, Social Security has had its enemies, but it has withstood those enemies because of really the ingenious, the shrewd rationale that FDR assigned to Social Security. And this undermines that. It makes Social Security just another program, not—it does away with the idea that Treasury funds, that general funds, are not fed in to Social Security to support it. And I think a year or two in the future, the political support for Social Security will just unravel.
QUESTION: […] Obviously, every working American will next year see, for one year, their pay—this is a sizable reduction in what they have to pay out in Social Security taxes. So then, at the end of next year, as you’re beginning a presidential election year, the Obama administration will be forced to having to increase those taxes again or may end up bending to Republican pressures to begin creating private retirement accounts as part of that two percent return, and something that Obama’s own economic adviser, Austan Goolsbee, has often advocated. Do you have any concerns about that? What will happen at the end of this one-year period?
REP. RUSH HOLT: Well, in January 2012, workers—under this proposal, under this scheme, workers would see their take-home pay go down. I’m not sure who wants to be responsible for that. So, this is called a one-year change. And any lost revenue will be replenished from the general fund, and then the tax rates would be restored to the full 6.2 percent in 2012. I’m not so sure. I mean, it—but my point is, even if you lose that revenue for one, two or three years, it could be made up. But the damage done to the idea, the political underpinning of Social Security, will be, I’m afraid, irreparable.
By the time of this posting tax bill will already be signed – the beginning of the end. On Yahoo News: Bill preventing big tax hikes heads to Obama Fri.
Obama Signs (Republican) Tax Deal, Hails Bipartisan Effort to Grow Jobs
and calls it “COMPROMISE.” I wonder how he defines surrender.