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by Robert B. Reich
The president and a few other prominent Democrats are openly suggesting that
This is even before Democrats have begun formal budget negotiations with Republicans -- who still refuse to raise taxes on the rich, close tax loopholes the rich depend on (such as hedge-fund and private-equity managers' "carried interest"), increase capital gains taxes on the wealthy, cap tax deductions or tax financial transactions.
It's not the first time the administration has led with a compromise, but these particular pre-concessions are especially unwise -- economically and politically.
Consider the economics. The
According to this view, when it comes to adjusting
But this leaves out a major piece of reality. Unlike most other Americans, seniors pay 20 percent to 40 percent of their incomes for health care. They can't switch to lower-cost alternatives because they either don't exist or seniors aren't in a position to shop for them.
In addition, health-care costs have been rising much faster than inflation. So even the inflation adjustment now utilized for
The fact is,
Given how much income and wealth have now concentrated at the top, why not get rid of the ceiling altogether and exempt the first
The case against "reforming"
The only way to reap significant savings from "means-testing"
With health-care costs under better control, retirees wouldn't be paying a large and growing portion of their incomes for health care.
Yet ever since
Why should Democrats now lead the charge against them?
The Case Against Cutting Social Security and Medicare | Politics