A tactical play on Social Security

For a moment last week it looked as though the Republicans were going to give away the store on Social Security reform.  Britain's Guardian reported rumors that the Republicans in Congress were going to draft a bill 'stripped of President Bush's proposed personal accounts financed with payroll taxes' and it would 'avoid the difficult choices of curbs on benefits, higher taxes or changes in the retirement age needed to implement the president's call for long—term financial stability.'  It looked as though Republicans had given up on reforming Social Security with personal accounts.  Some conservatives started panicking. O ye of little faith.  When the Republicans' proposed Social Security bill was actually announced on June 22, it turned out to be a nice tactical play that still achieved the strategic goal of getting the camel's nose of personal accounts under the tent.  The plan called for taking the current Social Security surplus—the share of...(Read Full Article)