Tuesday, May 17, 2005

One Democrat's Alternative on SS

We finally got a Democrat alternative to President Bush's Social Security plan. Link.
Rep. Robert Wexler, Florida Democrat, broke with his party leadership yesterday and introduced a plan to fix Social Security by raising taxes, saying it's time more Democrats join the dialogue by introducing plans of their own. [...]

Mr. Wexler's plan would increase taxes to take care of Social Security's projected shortfall. The proposal would subject income above the $90,000 cap to a 6 percent tax -- 3 percent paid by the worker, 3 percent paid by the employer. Income less than $90,000 already is taxed at twice that rate. [...]

Mr. Wexler said he also has spoken privately with several of his Democratic colleagues about moving forward with plans and that "there's a lot more support for this kind of action than people might believe."
Rep. Peter A. DeFazio, Oregon Democrat, is considering introducing a plan that would lift the cap on income subject to the payroll tax while exempting the first $4,000.

I am Shocked! Shocked! A Democrat wants to solve a problem by raising taxes. The main objection of the Democrats to Mr. Bush's suggestion to means test the rate of growth of benefits is that is turns Social Security into a welfare program by separating benefits from payments made. The problem with raising Social Security taxes is that it automatically raises benefits, since benefits are linked to taxes paid. Mr. Wexler's solution to this problem: charge the wealthy more taxes, but do not raise their benefits. Democrats have an incredible ability to hold two conflicting ideas at the same time. X is good if a Democrat wants it, but bad if a Republican wants it.


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