Matt Bai's Post-Partisanship -- RollingStone.com: "Let's be clear about what's going on here. Social Security was never the cause of the nation's debt problems. This issue dates all the way back to the Eighties, when Ronald Reagan hired Alan Greenspan to chair the National Commission on Social Security Reform, ostensibly to deal with a looming shortfall in the fund. Greenspan's solution was to hike Social Security tax rates (they went from 9.35% in 1981 to 15.3% in 1990) and build up a 'surplus' that could be used to pay Baby Boomers their social security checks 30 years down the road.
They raised the SS taxes all right, but they didn't save the money for any old Baby Boomers in the 2000s. Instead, Reagan blew that money paying for eight years of deficit spending and tax cuts. Three presidents after him used the same trick. They used about $1.69 trillion in extra Social Security revenue (from the Greenspan hikes) to pay for current-day goodies, with the still-being-debated Bush tax cuts being a great example. This led to the infamous moment during Bush's presidency when Paul O'Neill announced that the Social Security Trust Fund had no assets." (emphasis mine).
 |
| Gore's 'lockbox' idea so funny now? |
No comments:
Post a Comment