It's now almost certain the House will vote this fall on a Social Security reform bill to let workers invest part of their payroll taxes in U.S. Treasury bonds they would own.
Contrary to the belief President Bush's investment accounts plan is dead, half of his reform proposal is alive and kicking in the House -- the far less controversial part. The so-called "grow accounts" bond investment bill has the full support of House Republican leaders, including Speaker Dennis Hastert of Illinois and Majority Leader Tom DeLay of Texas, who is pushing for an early vote.
The only thing missing right now is Mr. Bush's support. The White House has been cool to the idea, but conservative strategists say the bill would "pass the House in a heartbeat" with the president's backing. While its prospects remain uncertain in the Senate, a roll call vote on its merits would return Mr. Bush to the offensive on one of his toughest issues, throw the Democrats into a thorny political situation, and, if it fails, give Republicans a great issue to run on in 2006.
Hahahahahahahaha. So let me get this straight, the Republicans, in a time of rising gas prices and debt and falling incomes, the Republicans are going to put grandmothers and grandfathers into poverty and out on the street, and then are gonna take Middle America's money that was going to be for their retirement and give it to the rich in tax breaks, to Halliburtion and Bechtel in tax "incentives" and no bid contracts for Iraq, and to the Oil Companies, because, you know, they are hurting financially right now.
You do that Republicans. Go ahead. While we Democrats have a lot to run on in 2006, we will surely make room for this.
For good measure, here is their plan, wisely framed and named as "Grow Accounts:"
In the fierce political warfare raging over Social Security reform, Mr. Hastert and other Republican leaders have played their cards very close to their vests. But in a confidential internal memo Mr. Thomas sent to House GOP leaders earlier this month, he said grow accounts will "likely" be a part of the package he brings out of committee after Labor Day.
Democrats have been able to force Mr. Bush and the Republicans almost to a standstill on any plan including stock investments, saying it's too risky, costly and would undermine Social Security's future. They have not been able to make the same argument about investing in U.S. Treasury bonds because that's what Social Security funds are invested in now.
The Republican plan, sponsored by Ways and Means Social Security Subcommittee Chairman Jim McCrery, Louisiana Republican, would allow workers to invest some part of their payroll taxes in such bonds, backed by the full faith and credit of the U.S. government. Here's how it would work:
The Social Security payroll tax system takes in billions of dollars more than needed to pay out monthly retirement checks. The government takes this huge cash surplus and uses it as general revenue to pay its other bills. In return, the feds give the Social Security's so called "trust fund" Treasury bonds that promise to pay back the borrowed money in future years.
Under the grow accounts proposal, workers who sign up would own a share of these bonds and the interest payments that would accrue from them over their working years. Instead of having nothing but promises that they will get their future benefits, they would own secure, tangible assets no one could take away from them when they are ready to retire and which could be left to their heirs.
While the bond idea is less than the sweeping privatization reform conservative reformers wanted, they now see the stripped-down proposal as "the camel's nose under the Social Security tent" that would eventually lead to a more expanded program including stocks.
ATTENTION DEMOCRATS IN WASHINGTON AND AROUND THE COUNTRY: This is the number one reason there shall be no compromise on "reforming" Social Security with these Republicans, because they are deceiving us. They are, not surprisingly, lying to us. They will compromise now, but only to get one foot into the privatization door. They will get what they want later after we have capitulated. So, Senator Reid, Senator Byrd, Senator Clinton, Congresswoman Pelosi, Congressman Pomeroy, if you dare accept these Grow Accounts, the entire blogosphere will revolt against you. Reform at your own peril.
Stand strong Democrats. Buck up that Spine. We have our plan, and it is called Social Security.
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