Top Democrat Identifies Another Threat To Social Security In Obama Tax Planhttp://tpmdc.talkingpointsmemo.com/2010/12/top-democrat-identifies-another-threat-to-social-security-in-obama-tax-plan.php?ref=fpiAn outspoken and respected House liberal is concerned that President Obama's tax cut plan will pose more than one threat to Social Security.
Progressive advocates, and a wide swath of the Democratic party, oppose Obama's call for a partial employee payroll tax holiday. Not because they don't want workers to have extra cash in their pocket, but because they worry that a supposedly temporary payroll tax rate will become the new normal and jeopardize Social Security in the long run. Next year, they worry, Republicans will characterize allowing the holiday to lapse as a "tax hike" on workers, and Dems will be cowed into extending it.
Rep. Rush Holt (D-NJ) shares that fear. But even if things don't shake out that way, he says, treating the funding mechanism for Social Security as a variable that can be tweaked to fund stimulus or reduce deficits will erode Social Security's status as the third rail of American politics, and leave it vulnerable to future attacks from the right.
(snip)
"Social Security becomes something we use to stimulate the economy, next year we'll use it to balance the budget -- it becomes another government program like the Endowment for the Arts," Holt said. "Ever since 1945 there have been dedicated enemies of Social Security and the reason it has been able to withstand the attacks is that it is special. If that goes away, Social Security goes away in no time flat."
Rep. Rush Holt: Tax Deal Turns Social Security Into ‘Just Another Trading Chip’ (snip)
With this deal, Social Security is put into a package with the Bush tax cuts, with the AMT, with business accelerated expensing, and so forth. And as a result, Social Security, in a sense, becomes just another government program. And if Social Security is a program where one year you borrow from it to stimulate the economy, and another year you use it to balance the budget, you replace it from the general fund — or maybe you don’t — the political support for this will evaporate quickly…That’s the real problem here. It changes the very nature of Social Security. <...>
What is worse
is if people begin to believe that Social Security is just another trading chip. You can use it this year for this purpose and that year for another purpose. Whether to use Social Security to accomplish other government aims, and put it in the debate just like whether the income cut-off should be $250,000 or $1 million, means that Social Security is just like those other things.
Listen here:
http://thinkprogress.org/2010/12/15/holt-trading-chip/