Let's talk Social Security here.
Those of you who follow national elections know that Democrats just love to demagogue the Social Security issue. In almost every federal election I can remember since I've been on talk radio ... .and there's been about 18 of them .... the Democrats have tried to frighten the Depends ® off our senior citizens with charges that the Republicans had a "secret plan" to end Social Security at worst, or were going to "slash" Social Security benefits at best.
Just why do you think the Democrats had to work so hard to trash President Bush's plan for a partial privatization of Social Security? Come on now ... this one is easy! If people own their own Social Security accounts, how in the wide wide world of politics will the Democrats frighten the wizened citizens with outrageous charges that the Republicans are going to take all or part of their Social Security benefits away? Tell that to a senior citizen who owns his own Social Security retirement account and he's going to laugh in your face!
It's true, though, The Republicans have had a plan for Social Security, and the plan was simply to allow people to own their own accounts. When you own your own account it can't be taken away from you. When you die you can leave it to your kids --- or to anyone you wish! Not only does the account belong to you, but you can actually invest the account so that it will earn you more than the average 1.5% or so that’s earned on that phony paper account you have with the Social Security Administration … if you’re lucky
The Democrats have a plan too. Really ... it's quite brilliant. Trust me, the Democrats plan is a sure-fire cinch to broaden the loyalty of the Democrat voter base, and to continue broadening it until Social Security finally collapses under its own weight.
Here's the plan, as presented by none other than N.Y. Democrat congressman Charlie Rangel. He wants to exempt the first $15,000 of wages from Social Security taxes! Not bad, huh? As I said, it's just brilliant! A wage earner making $30,000 a year is going to have his Social Security payroll tax bill cut in half! And remember, Charlie Rangel is going to be the chairman of the House Ways and Means Committee. That's where the tax bills are written.
But hold on. This won’t work because it’s going to cost Social Security big time, isn't it? How will Social Security get by without all of the taxes on that first $15,000 of income? Won't that hasten the demise of Social Security? Oh come on. I know you were born at night, but was it last night?
Of course this isn't going to cost Social Security anything. THINK! All the Democrats have to do is raise the earnings limit on the evil, hideous, stanky rich to cover the cost!
Now at first blush you might think that they would just take that 15,000 off the bottom and add it to the top. That would bring the Social Security earnings cap up to around $110,000. But hold on here. There are many many more people who earn that first $15,000 than there are people who earn $110,000. The truth, then, is that they'll actually have to raise the earnings limit by much more than $15,000. $20,000 or $25,000 might be a better bet. The end result, of course, is that those in the lower income ranks will get a free ride for a good portion of their future Social Security benefits ... a free ride paid for by the wicked and undeserving rich.
Wait. We're not through here. I want you to consider what the Democrats would do every single time a federal election rolls around once they have managed to create this $15,000 exemption. Can't you just hear Joe Democrat's campaign ad right now?
"Cast your vote for me, Joe Democrat, and I'll work to raise your exemption on Social Security payroll taxes to your first $18,000 in wages!"
Well what myrmidon isn't going to go for that? Vote for Joe and get a tax cut! What a deal! Trust me ... for many voters who earn less than the Social Security earnings limit this will be the defining issue of the election. They will not give one second’s worth of thought to the high achievers in the upper income levels who will see their taxes increased, nor will they care that the tax increases on those evil rich exploiters of the downtrodden will exceed the tax cut they're getting from Joe Democrat. Joe and his fellow Democrats have already wiped out any federal income tax liability they might have had with a laundry list of exceptions, deductions and tax credits .. now they see the Democrats working hard to get rid of their payroll taxes! Keep voting for Joe Democrat and soon they’ll have a completely free ride!
It's a classic case of taking away from the upper income earners to give to the lower income earners, and since there are more on the lower end than on the higher, ... it's an automatic vote getter! Charles Rangel knows the opportunities that wait here ... and as soon as the Democrats are in power he's prepared to move.
As the lawyers like to say when they write you blue-steam letters .... be governed accordingly.