Social Security

On Monday, September 15th, six experts in fiscal policy and healthcare policy debated the nature of the nation’s pending fiscal crisis at the National Press Club. Moderated by TaxVox editor Howard Gleckman, the event featured Henry Aaron and Alice Rivlin of the Brookings Institution, Julie Barnes and Maya MacGuineas of the New America Foundation, Robert Greenstein of the Center for Budget and Policy Priorities, and Eugene Steuerle of the Peterson Foundation. Henry Aaron warned that long-term deficit projections would… more

On October 28th, 1997, House Speaker Newt Gingrich and President Bill Clinton held a secret meeting where they reached a groundbreaking deal to create a centrist political coalition to reform Social Security and Medicare. Although the Lewinsky scandal ultimately undermined their agreement, the efforts of these men, and others in Congress, might serve as a model for members of both parties interested in addressing the long-term shortfalls in the nation's entitlement programs. Steven Gillon will discuss the details of… more

...Raising the retirement age further, reducing benefits across the board, pegging increases in benefits to inflation rather than wage hikes, and allowing retirement at an earlier age in return for cuts in benefits were all floated in a December 2005 study, “Nonpartisan Social Security Reform Plan.” Its authors included Jeffrey Liebman, now Mr. Obama’s chief Social Security adviser, and Maya MacGuineas, who advised Mr. McCain on the subject in 2000... LINK

After a two-year hiatus, Social Security has made its way back onto the political stage. Both presidential candidates, recognizing that the program is insolvent over the long-run, are claiming that they will confront the system’s $4 trillion long-term shortfall. Senator Barack Obama has made a specific proposal to finance part of the shortfall through a tax on people making over $250,000 a year, while Senator McCain has pledged that he’ll "fight to save the future of Social Security” and “won't leave office without doing everything [he] can… more

...Maya MacGuineas, a budget expert at the New America Foundation who advised McCain on Social Security in 2000, said of his proposal: "In terms of details, there is so much to be filled in..." LINK

While congressional negotiators build a federal budget for 2009, a group of bipartisan budget experts are launching a campaign to wean the government off what they call a debt addiction. John Dimsdale reports.

RENITA JABLONSKI: In Washington today, House and Senate negotiators will try to sketch out a federal budget for 2009. At the same time, across town, a group of bipartisan budget experts will launch a campaign to wean the government from what they say is a debt addiction. John… more

Washington, DC – The Committee for a Responsible Federal Budget, a bipartisan group of some of the most highly respected budget experts in the United States that includes former directors of the Office of Management and Budget, Congressional Budget Office, and Government Accountability Office, as well as many former members of Congress, today launched US Budget Watch, a critically important new effort to force the 2008 presidential candidates to pay attention to the deteriorating federal budget situation.

US… more

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. . .Paulson did help promulgate reports about the nation’s fiscal woes and tried to revive interest in Bush’s moribund Social Security plan. “He worked with all the stakeholders,” says Maya MacGuineas, president of the Committee for a Responsible Federal Budget. “He talked to everyone.”  . . .

The Social Security payroll tax hurts working Americans -- and it’s getting worse. Because the tax (a flat levy of 15.3 percent, combining the nominal employer portion with the nominal employee portion) applies to income only up to $97,500 (with a scheduled increase to $102,000 this year), it is inherently, grossly regressive, falling far more heavily on working Americans than on the rich. At the same time, as a result of rising pre-tax wage inequality, the payroll tax system is… more

Think Tanks Offer Latest Social Security 'Reform' Plan (CongressNow, subscription only)

A new plan to reform Social Security released today would transform it into a true retirement insurance program to protect people against costs that exceed their means, according to a report released today. The proposal, presented jointly by The Heritage Foundation the New America Foundation, would mandate retirement savings and insurance,while scaling back benefits for those who don't need them. The proposal also would require… more