National Review Faces Reality And Talks Social Security

Most conservatives seem to be in a state of denial about what can be done about Social Security's long term funding issues. Most, including the President, seem to believe that privatization is still possible, despite the fact that Democrats control Congress and are firmly against privatization. The National Review, perhaps the country's most prominent conservative publication, may be an unlikely place to find ideas which could be a starting point for fruitful negotiations on legislation to improve Social Security's long term funding, but it looks as if its editorial board is starting to face reality. Check out this recent National Review piece that may actually provide a useful starting point:

First, the program could be put on a sound fiscal footing by reducing the future growth of benefits. Republicans will like this proposal better than Democrats, but few Democrats have ruled it out. Second, the government could provide tax credits to help low-income workers begin investing. Democrats have proposed this policy for years, and Republicans have objected. But if Republicans are as interested as they say they are in expanding the investor class — and they should be — they should drop their objections. Third, the taxes that fund Social Security could be made more progressive. There is a cap on the amount of wages that is subject to the payroll tax. That cap could be raised. This is where Democrats want to go, and Republicans have good reasons for resisting: It would increase marginal tax rates for the affected workers quite a bit, and it would not raise much money. But if the cap were not raised much, and the revenues gained were used to fund the tax credits or to lower the payroll-tax rate, Republicans might find their objections dwindling.