It's simple, elegant, and devastatingly cynical

I found this Kilgore thought in The New Republic's blog "etc". They, in turn take it from the Wall Street Journal. Give it some thought


WHAT SOCIAL SECURITY GIVETH TAX REFORM TAKETH AWAY: Yesterday's Wall Street Journal contained the following interesting nugget:

But some conservative activists say they would be willing to accept a tax increase in return for achieving such longtime conservative aims as overhauling Social Security, which was established under President Franklin Roosevelt. "If you can take 10 steps forward in exchange for three steps back, that's not unreasonable," says Dan Mitchell, a senior fellow at the Heritage Foundation, which generally favors lower taxes to encourage economic growth.

"We've got to get away from the idea that you can fix entitlements without some sacrifice," adds Republican Sen. Lindsey Graham of South Carolina. To reduce the needed borrowing for Social Security, Mr. Graham has been advocating a combination of tax increases, including lifting the payroll-tax cap, and ending loopholes and other special-interest tax breaks. He hopes that formula can attract a bipartisan coalition of centrists.

Under Mr. Grassley's direction, the Finance Committee is examining ways to improve taxpayer compliance and close loopholes that benefit corporations and individuals. Its list of potential steps includes making changes to expand the payroll tax -- for example, by making it harder for self-employed people to avoid payroll taxes on their income. Mr. Gregg favors applying the payroll tax to state and local workers who don't pay it now -- a move that likely would be contested by public-employee unions.

One Republican lawmaker involved in the debate even says "I don't think it's beyond the pale" that Mr. Bush might be willing to accept expiration of some tax cuts to achieve other goals. Aside from Social Security overhaul and deficit reduction, Mr. Bush has embraced the cause of revamping the U.S. tax code.

A bipartisan tax-overhaul panel appointed by the president is to make its recommendations by July 31.

Ed Kilgore has speculated that the push on Social Security privatization may just be one big bait-and-switch designed to help pass large, tax-free savings accounts for the wealthy (which could be Bush's understanding of "tax reform"). But this latest tack strikes me as a way of accomplishing both tax reform and Social Security privatization. Step 1: Get GOP members of Congress to go along with a tax increase that helps you pass privatization--presumably in some grand compromise with Democrats--by privately assuring them you'll undo the tax increase when you do tax reform. Step 2: Undo said tax increase when you do tax reform.

It's simple, elegant, and devastatingly cynical--exactly what you've come to expect from this White House.

posted 3:46 p.m.

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