No Payroll Tax Increases
It appears that there is some agreement between liberal blogs and President Bush: Payroll tax hikes should not be part of any "solution" to the social security "crisis." Increasing revenue now (pre-funding) is only sensible if one accepts the validity of federal bonds. Republicans don't believe in the trust fund, dismissing it as empty IOUs. In the abstract, I think the word of the government is reliable; in reality, I think Republicans will break any covenant, sacrifice any lamb, in pursuit of power.
Increasing payroll taxes will do exactly three things:
- Let Republicans brand Democrats as tax hikers;
- Give Republicans more room to cut taxes on income and wealth;
- Finance more of Bush's reckless fiscal adventurism.