Thursday, March 03, 2005

WSJ.com - More Proposals Surface to Mend Social Security

How about reinstating the estate tax and setting the assessment at a much higher level, indexing it to wages and cutting the rate?

This gives the Democrats what they want - higher taxes- and adds "revenue" in future years.

Carve-outs are the way to go if your intrepretation of Greenspanese is correct, which concurs with my post yesterday.

"Social Security revenues currently exceed benefits by about $150 billion a year. That surplus is lent to the government, and Social Security receives Treasury bonds in return. As baby boomers retire, that surplus will evaporate. A commission led by then-private citizen Greenspan in 1983 created those surpluses by advocating tax increases and benefit cuts. But yesterday Mr. Greenspan suggested those surpluses did more harm than good because, rather than lift national saving, they "have served primarily to facilitate larger deficits in the rest of the budget."

Read: Given politicans more money to spend on essentially permanent governement programs.

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