Thread: Hands off Social Security

Hands off Social Security

Hike taxes on wealthy; put jobs ahead of deficit reduction.

By Josh Bivens

President Obama wants his deficit commission to put "everything on the table" as it addresses long-term budget deficits. While "everything on the table" has become Beltway-speak for expressing seriousness about the budget, it's precisely the wrong approach. A truly serious look at the nation's projected budget imbalance shows that just two things really demand attention: rising health care costs and insufficient revenues.

Medicare and Medicaid are the primary drivers of federal spending increases in coming decades. Both programs rely on the private health system to deliver care, so they are at its mercy just like businesses and families. And just as any family with health insurance can tell you that premiums are fast becoming unaffordable, the failure of our private-sector health system to contain costs is what is driving up the bill for Medicare and Medicaid.

Even after getting health care costs under control, however, tax revenues won't cover all of the programs that Americans support. Given that we've now had three-plus decades of growing income inequality, we desperately need a more equitable tax system. Rolling back the Bush tax cuts for the wealthiest households is an obvious first step. The deficit commission should also consider pricing carbon emissions and levying a Wall Street sales tax; each could raise substantial revenue in an efficient, progressive way.

Social Security should not be a target. The program will run a surplus as late as 2015, and past surpluses will finance all benefits until 2043. Given this, it's more than a little odd to keep it "on the table."

Lastly, deficit reduction must take a back seat to job creation. The high deficits of the last couple years are driven by the recession and the temporary policy responses to it. A return to pre-recession unemployment rates will increase tax revenues and shrink the deficit by at least two-thirds. Prematurely choking off spending on job creation will just make the budget situation worse.

Josh Bivens is an economist at the Economic Policy Institute, which advocates broadening economic policy discussions to include the interests of low- and middle-income workers.

Posted at 12:20 AM/ET, March 17, 2010 in USA TODAY editorial

http://blogs.usatoday.com/oped/2010/03/ ... .html#more

Run our country into the ground and the consequences will be dire indeed...We WILL hold you accountable Mr Politician...You can bet on it.

Even after getting health care costs under control, however, tax revenues won't cover all of the programs that Americans support. Given that we've now had three-plus decades of growing income inequality, we desperately need a more equitable tax system. Rolling back the Bush tax cuts for the wealthiest households is an obvious first step. The deficit commission should also consider pricing carbon emissions and levying a Wall Street sales tax; each could raise substantial revenue in an efficient, progressive way.

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Lastly, deficit reduction must take a back seat to job creation. The high deficits of the last couple years are driven by the recession and the temporary policy responses to it. A return to pre-recession unemployment rates will increase tax revenues and shrink the deficit by at least two-thirds. Prematurely choking off spending on job creation will just make the budget situation worse.

What brain trusts! Get rid of the Bush Tax Cuts, levy carbon taxes, and institute a sales tax on investment. And in the same breath have the gall to say deficit reduction must take a back seat to job creation. Don't these jerks understand that the above actions will ensure continued unemployment in the double digits by stifling investment, new ventures, and expansion of existing businesses. And there is no way Government money (our tax money) can compensate because it is taking money from one pocket and putting it in another...it creates nothing. [/quote]