Thursday, February 10, 2005

Prevent a Massive Tax Increase

This is a good explanation of the Social Security Reality. I know NRO is considered by many to be on the far right. However, I don't see this as an opinion piece. It is just laying out the facts. If anyone has sources for different facts, please let me know.

Bruce Bartlett on Social Security Reform and Income Taxes on NRO Financial: "But the real reason to reform the program is to prevent a massive income-tax increase, not because anyone's benefits are threatened by inaction."


Anonymous said...

Here's a link that provides more details on a plan that is supported by the White House. If you scroll down to table two, you will see that the plan actually results in a substanstial reduction in benefits, even with successful private accounts involved. They are not the panacea to the problem that Bartlett seems to suggest.

Most people won't have to face a massive tax hike - the truth is the money can be generated through raising the tax cap currently in place. Raising the cap on Social Security taxes above $90,000 wouldn't have a great impact on the working class, but would go a long way in solving the projected problems that Social Security may face.

The main problem with the Bush plan is he says he won't "raise taxes," which many people feel includes this solution. Which means the only thing left is to cut benefits for people.

David M. Smith said...

I believe anonymous is wrong in claiming the White House supports the plan that is analyzed in the link provided.

Mr. Bartlett's article that I linked is about the current Social Security facts and problems.

Obviously, any new plan will have a negative effect on some Americans.

We will discuss proposals when they are actually being considered. As of now, we only have the current system to analyze and critique.