April 14, 2005

Cliff Upcoming

Word on the street (Which I get from TPM and NewDonkey who get it from this guy) Is that the GOP in the House is going to move ahead with a version of SS reform that:

Push through a Social Security privatization bill with no new revenues and no benefit cuts.
I can barely begin to imagine how much you'd have to borrow--or cut from guaranteed benefits--to pay for this woofer, but we are probably talking about many trillions. I'm sure Josh or Max or somebody will soon enlighten us.

What these guys are talking about is incuring Trillions of dollars in costs and not paying for them. Simply not paying for them. Even the "full faith and credit" of the United States is up for incurring that kind of debt. And if you are wondering if your particular tax bracket will be screwed by this policy, the answer is yes. There is hope however:

But now it seems a few of the ultras in the House have convinced themselves that it's actually good politics to vote on it, send it over to the senate, and if it dies there blame the Democrats.

This would be a smart and gutsy strategy if phase-out were popular. But since every public poll available seems to show that it's not popular at all, it's not immediately clear why letting the Democrats stop this unpopular bill in the senate would necessarily be a bad thing for them. Indeed, common sense would suggest that stopping an unpopular piece of legislation would be something they'd be happy to do.

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