Dean Baker: Why Is President Obama So Anxious to Cut Social Security?

Dean Baker: Why Is President Obama So Anxious to Cut Social Security?.

This cut to Social Security seems especially inappropriate since the near retirees who would feel the full impact of this cut have just seen most of their wealth destroyed by the collapse of the housing bubble and the plunge in the stock market. The typical near retiree (ages 55-64) has just $170,000 in net wealth, including the equity in their home.

GOP may OK tax increase that Obama hopes to block – Yahoo! News

GOP may OK tax increase that Obama hopes to block – Yahoo! News.

You won’t hear from me very often around here, but there are some stories that simply cry out for commentary. This is especially true when Max Brantley over at Arkansas Times get it completely wrong (which does not happen very often).

Here is the beginning of the story.

WASHINGTON (AP) — News flash: Congressional Republicans want to raise your taxes.

Impossible, right? GOP lawmakers are so virulently anti-tax, surely they will fight to prevent a payroll tax increase on virtually every wage-earner starting Jan. 1, right?

Apparently not.

Republicans are opposing Obama, so they must be wrong, right? Well, not so fast.

This particular tax is the payroll tax. It funds Social Security. It is IMPORTANT that this “temporary” tax cut be reversed and the full amount collected. Let me note that Social Security Disability is apparently in trouble and one method of funding that obligation is to “borrow” from Social Security.

One way or the other, if Social Security should run out of dough, which is more possible if it is permanently starved of essential revenue, Max will be the first to wail loud and long. This is an essential program and funding it is imparat9ive. I am personally grateful that Republicans (even people like Eric Cantor) see the importance of Social Security.

In other words, Obama is VERY wrong and Republicans are (at least on this one) correct.