The Time for Social Security Reform Is Now

With the payroll tax holiday set to expire in March, there seems to be little doubt on either side of the aisle that the forthcoming negotiations will result in an extension of the 2% payroll tax cut through the end of the year. Of course, Republicans should have good reason to oppose this extension.  The payroll taxes in question (FICA) are in place to supply the Social Security trust funds with revenue, and cutting these taxes without securing spending cuts drives a massive amount of debt, currently estimated at $120 billion annually.  But since the payroll tax holiday has been presented to Americans as a benefit to help the struggling poor and middle classes, fiscal responsibility doesn't matter -- Republicans would appear merciless to oppose it.  And Democrats have no reason to reinstitute the 2% that has been cut from payroll taxes in an election year, regardless of whether a new push for the "millionaire surtax" fails and the shortfall goes unfunded. This reckless...(Read Full Article)

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