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February 10, 2012
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David G. Savage: Why activists may not be in a hurry to have High Court rule on alternative marriage
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Kimberly Palmer: How to actually enjoy -- relaxing, financially -- your vacation
February 8, 2012
Warren Richey: Why momentous Prop. 8 ruling might not satisfy gay-rights groups
Menachem Wecker: Though Controversial, LL.M.'s Can Lead to Specialized Legal Jobs
The Kosher Gourmet byDana Velden: Going to the bother of making soup? You know it better be good. This CREAM OF TOMATO SOUP certainly is! And it's a cinch to make, too (Includes techinques and serving secrets)
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Suzanne Bohan: Leaping lizards! Tiny reptiles advancing robot design
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Jonathan Tobin: Iran Threatens Israel With Destruction, But the New York Times Doesn't Hear It
Jeffrey Fleishman: In newly democratic Egypt, tens of democracy activists jailed, to stand trial; their groups are 'threatening the stability of the homeland'
Julie Deardorff : Researchers say antioxidants may not be that effective and could do more harm than good
Mark Clayton: How did Anonymous hackers eavesdrop on FBI and Scotland Yard?
February 3, 2012
Edmund Sanders : Israeli official says Iran is creating missile that could reach East Coast of US
Victoria Kim: Immigrant-smuggling ring used black drivers to avoid racial profiling
February 2, 2012
Jim Carney: Wrong number call may have saved her life
Reza Kahlili : Ex-CIA spy in Iran's Revolutionary Guard: What Obama doesn't grasp about striking deals with Tehran
Tina Susman: For woodchuck rescuer, every day is Groundhog Day
February 1, 2012
Brian Bennett: US officials see increasing threat of domestic attack from Iran
Emily Brandon: How to Take Advantage of New 401(k) Fee Disclosures
January 31, 2012
January 30, 2012
Paul Richter and Ramin Mostaghim: Misreading Teheran's limits -- deadly and economically devastating as they may be -- is a risk administration, Europe seem willing to take
Suzanne Bohan: Warning: Nap-deprived tots missing more than sleep, study finds
Meg Handley: Banks Revamping Rewards Programs to Woo Customers
January 27, 2012
Caroline B. Glick: Obama: Of course I intend to prevent a nuclear holocaust . . . in a few months
Yochonon Donn: In liberal New York City, fervently-Orthodox Jews may soon be getting a district to call their own
Jeannine Stein: An inflated ego and thinking you're 'all that' doesn't just make others sick of you, it can make you ill
Katy Hopkins: New budget rules may affect how much money you get for college
January 26, 2012
Ed Koch: To the New York Times, calling for the murder of Jews by those capable of having their incitement taken seriously isn't news
Jeannine Stein: Mental illness struck one in five U.S. adults in 2010: Report
January 25, 2012
Richard Simon: House passes two bills endorsing the use of religious symbols at military memorials
Fred Weir: Putin: Multiethnic Russia cannot survive as a US-style 'melting pot'; must find its own way
Susan Johnston: 5 Sneaky Coupon Strategies Consumers Should Watch Out For
January 24, 2012
Carol Clark: The price of your soul: How your brain decides whether to 'sell out'
Caroline B. Glick: America lost most in 'Arab Spring'. Sadly, many voters still don't grasp the extent
Warren Richey: Drug criminal scores win in GPS ruling from conservative-leaning high court
Erika Bolstad: Black conservatives gather to talk about gaining strength
January 23, 2012
Melissa Dribben: Jewish voters to play a key role in Florida's Republican primary
Jordan Rau: In quest to grow, Catholic hospital system will announce this morning its break from church
Ali Safi: U.S. envoy gives Taliban terms for peace talks
January 19, 2012
January 18, 2012
January 17, 2012
Frank J. Gaffney Jr.: No-kidding red lines: U.S. response to an Iranian nuke may be bluster, but Israel's won't be
David G. Savage: They sued their principals after slandering them online --- now the cases are headed to the Supreme Court
David Francis: Where to Invest in 2012: With stocks expected to rebound, opportunity abounds for investors
January 13, 2012
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Alexia Elejalde-Ruiz: Thriving through touch: Gentle massage helps older people with low mobility improve in mind and body
January 12, 2012
Warren Richey: Landmark Supreme Court ruling a 'resounding win' for religious groups
Warren Richey: Supreme Court says no to new rule on eyewitness testimony
John Fauber : Statins found to raise diabetes risk in postmenopausal women
Katy Hopkins : Consider This Before You Pay for an Online Degree
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January 11, 2012
Shari Roan: Millions of atrial fibrillation sufferers at risk for devastating, but preventable, stroke
Tom Hussain: Pakistan -- recipient of more than $21 billion in civilian and military aid -- speeds pursuit of Iranian pipeline, defying US
David G. Savage: High court signals it won't be loosening TV's 'indecency' rules
Stephen Ceasar: Oklahoma's Islamic law amendment can't go into effect, court rules
January 10, 2012
Reza Kahlili: From an ex-CIA spy: US must exploit new split in Iran's Revolutionary Guard
Karen Kaplan: Study: Nicotine replacement products ineffective when used in real-life situations
January 9, 2012
Michael Doyle: Put through legal hell over dream home, couple fought back hard --- all the way to Supreme Court
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Jewish World Review
Feb. 24, 2005
/ 15 Adar 1, 5765
How to cut Social Security and live to tell about it
By
Dick Morris
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http://www.JewishWorldReview.com |
President Bush and, in a separate effort, Sen. Lindsey Graham (R-S.C.) and a group of bipartisan moderates are try to figure out a way to cut Social Security benefits or increase the taxes that fund the system without getting killed politically in the process.
Everybody recognizes the truth of what Federal Reserve Chairman Alan Greenspan said: that privatizing a portion of the system is a good idea but will not undo and might just worsen the deficits the system as a whole faces. The hard facts are that benefits must be cut or taxes increased or the system won't make it.
Surprisingly, Bush seemed to leave the door open recently to an increase in the ceiling up to which the payroll tax applies. Various proposals have involved raising the cutoff from its current $90,000 limit to $200,000. While Bush has precluded any increase in the Social Security tax rate, he has appeared yet to rule out any such an increase.
Good for him. A dose of fiscal reality will go a long way to ameliorating the Social Security problem. But it must be accompanied by a similarly strong dose of political reality.
If Bush and the Republicans just increase the ceiling on the tax, they will sell out the very voters who put them in power. Nobody is going to maintain that an increase in the limit on the payroll tax is not a tax hike or that there is any real difference between a rise in the rates and a hike in the income on which the rates apply.
But there is a way Bush can make it work. His current thinking on Social Security would allow each person paying taxes into the system to invest privately four percentage points of his income or about one-third of the total tax. It is the diversion of the revenues those four points produce that is scaring Greenspan and other responsible observers of the system.
But Bush could propose that those who are currently at the $90,000 limit would not be permitted to divert four points to private investment. They would have to take the share of their taxes that they channel through personal accounts out of the increased amount they will have to pay because of the raise in the ceiling. All or part of that increased amount could be available to them for private investment.
If all of it were to be available, they would, in effect, be paying a tax increase to themselves and the hike would simply seem like a mandatory stimulant to the personal savings they know they should be setting aside in any event. And the four points that they would not be able to earmark for private investment would no longer be diverted from the Social Security coffers and would not figure into the deficit calculation.
Even if the taxpayers who make more than the $90,000 ceiling were not allowed to keep all of the increased payment, but only half of it, the tax increase would go down much more easily since at least half of the money would, in effect, be a payment to themselves.
Bush and Sen. Graham's group should also consider the following other proposals to cut the deficit without cutting their own throats in the process:
- As suggested earlier in this space, index the retirement age to life expectancy. Over the next 40 years, the change will be dramatic and the savings will be substantial.
- Provide for a cut in cost-of-living adjustments for future retirees as long as they pay their current tax levels. However, give them the option of maintaining the current value of their Social Security retirement funds, even in the face of inflation, by indexing their tax rates to reflect the increased costs of adjusting for the cost of living. Everybody understands that the cost of living is going up and that taxes must either keep pace or benefits must be cut. But if you give them their choice of a cut in benefits or a commensurate increase in taxes, it will seem fair and political unobjectionable.
These steps can make cutting Social Security or at least funding it for the future an exercise that one can survive politically.
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JWR contributor Dick Morris is author, most recently, of "Because He Could". (ClickHERE to purchase. Sales help fund JWR.) Comment by clicking here.
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