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February 09, 2005


It is wrong to say that revenue increases today will help Social Security's solvency. Social Security is running a surplus, which the government spends on other programs and puts IOUs in the Trust Fund. Therefore raising payroll taxes, or any taxes for the matter, with the intent of helping Social Security's longterm solvency is not possible. Any extra money brought in bewteen now and when the surplus is exhausted, estimated to be in 2018, will be spent on other programs. Anyone who proposes more payroll taxes to "fix" Social Security is merely giving license to Congress and the White House to spend it.

Chris Ullman
Former OMB spokesman, 2/01 to 11/01
[email protected]

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