Greg Sargent follows up on the
newfound concern Republicans suddenly have for Social Security's fiscal future with
some new examples.
Republicans who are looking for reasons not to support Obama’s push to extend the payroll tax cut have hit on a new one: It poses a grave threat to the Social Security trust fund. Here, for instance, is GOP Senator Mark Kirk making that case:
"The White House has redefined this as the payroll tax deduction. It's not the payroll tax deduction—it's contributions to Social Security. And when the American people hear that we have legislation moving forward to cut contributions to Social Security and drive the trust fund into the red, I think opposition would be fairly overwhelming."
As Sargent points out, quoting Kevin Drum, that's just not how it works. The funds not going into Social Security for the duration of this tax holiday are being made up from the general fund. Now that does pose a political problem, and a serious one, for Social Security. Extending it indefinitely will undermine Social Security because it will finally give Social Security opponents some basis in fact for their argument that Social Security contributes to the deficit, or is unsustainable on it's own, or whatever the argument du jour against it happens to be.
That aside, Sargent has another point, that this is another set up from Republicans to argue that it's the Democrats who are trying to undermine Social Security, and that they, the Republicans, who are the true defenders of the program.
Well, here's a suggestion to combat that, and to actually strengthen Social Security in the long run. Democrats should embrace this newfound concern among Republicans for the program, and up the ante by coupling the payroll tax holiday with lifting the payroll tax cap. Right now, income over $110,000 is exempt from the payroll tax. Do away with that cap, and you help make sure that the lowered contributions from people who will never have more than $110,000 in income in a year don't get hit now. It's a win-win.