The recently enacted tax extension compromise was good for my pocketbook but bad for my children’s future and thus worries me greatly. It also makes me worry about the backbone of our Democrat politicians.
Why does it make me worry? Because of the 2% reduction in the employee Social Security contribution.
Let’s consider history a moment. Ever since Franklin Roosevelt introduced Social Security legislation, it has been under attack from the conservative right. The reasons have varied but ultimately it boils down to what distinguishes Republicans from Democrats: Republicans believe that the only safety net that government should provide is for the wealthy, a class they dream of joining, whereas Democrats believe there should be a safety net for those who are not wealthy and never will be wealthy. This is a fundamental philosophical difference and one that will become a chasm wider than the Grand Canyon in the Congress soon to be seated.
Over the years the right’s attack on Social Security has been thwarted. The most recent defeat was the plan to privatize a portion of Social Security. Can you imagine the mess most of us would be in had that plan come to fruition a few years ago? But now the Democrats have helped drive the first nail into the coffin of Social Security as a safety net. If there is one thing that can be said about Democrat politicians, it is that they are clueless.
Remember when the Bush-era tax cuts were enacted by the Republicans? What was the key to getting the tax cuts passed? It was the assertion that the cuts were temporary and would expire. The U.S. treasury would not lose those hundreds of billions of dollars forever. I suppose another key was the fanciful and fantasy belief that by giving the wealthy more money to spend, it would all trickle down to the middle and poor classes. Trickle is not what I would call what occurred; I feel more like a Robert Maplethorpe exhibit than the recipient of wealthy largesse.
So here the tax cuts are set to expire and what is the Republican hue and cry? To not extend the tax cuts would be a tax increase and they are adamantly opposed to a tax increase — even if just on millionaires and billionaires. I have to tell you how glad I am that the Republicans fought so bravely to maintain the wealthy’s ability to have both winter and summer homes and a Tiffany Christmas. But that is beside the point.
The point is that 42 Republicans stood together, united in refusing to do any of the countries business unless the wealthy got their tax cuts extended, with the preference that they be made permanent. What do you think will happen next year when the Social Security tax cut is supposed to expire?
It is like a perfect storm in the sense that the Republicans, with the help of Democrats, can accomplish two goals in by casting one stone. How better can they destroy Social Security for the future than to deprive it of finding, just as they plan to do to the health care reform measures. And when Democrats howl about how Social Security will be under financial threat, the Republicans will stand tall and united yet again in opposition to anything that smacks of a rise in taxes, which returning the Social Security tax rate to its 6.2% level would clearly be.
Of course there is the possibility that Republicans won’t object because basically the tax is a regressive tax on the middle- and low-income classes, not on the wealthy, but I doubt it. I expect that at some point the Democrats will realize they have been snookered yet again and my generation will be the last generation to collect Social Security as a safety net in old age.
I am always amazed at how ruthless Republicans can be and hapless Democrats are; I keep hoping that Democrats will suddenly get hit over the head with the frying pan and it will jostle their minds sufficiently to see that if they really want to be champions of the middle and lower classes, they need to give Republicans a dose of their own medicine. Alas, I expect that will never occur because Democrats tend to be leaderless.
This year was the 75th birthday of Social Security; I doubt we will celebrate its 100th.