In 2005 I spent a lot of time, too much time actually, writing about Social Security and the President’s dishonest and misguided attempt to gut and privatize one of the most popular and successful programs in this country’s history. But George W. Bush had just won reelection and made “reform” his top priority, so I felt it important to document the alternate reality he rolled out as he traveled around to fake photo ops and Potemkin town hall meetings. From totally manipulative nonsense about Social Security shortchanging African Americans to his stunt at the Office of Public Debt Accounting and borderline un-constitutional assertions that the nearly $2 trillion in the Social Security trust fund is worthless, it was quite the roadshow. But for a seriously united Democratic opposition, Bush would have had his way. The clash would prove a sign of things to come. Despite a failed war full of death, destruction, and PR disasters, the beginning of the Bush downfall (and the Democratic ascendancy) was the battle for Social Security.
But just as Bush wasn’t chastened after his popular vote loss in 2000 nor his narrow win in 2004, anyone expecting him to reverse course now is in for a surprise. And according to Dean Baker, it’s a pretty big surprise:
The basic story is that the Bush [health care] plan refunds Social Security tax payments on the first $15k of wages for workers who have a family insurance policy. For a worker earning $20k a year, this would mean most of their SS taxes would be refunded, but they would also see their benefits cut by close to 60 percent when they retire. In other words, this proposal would imply a massive change to the SS system, with the greatest impact on the benefits received by low wage workers.
This, in a word, is insane. It appears that Bush is trying to kill two birds with one stone: begin the process of gutting Social Security while at the same time sacrificing the future retirement security of the poorest working Americans in an attempt to stimulate spending now with the refunded taxes. It’s comforting to hear that Congressional Democrats describe this plan as “dead on arrival,” but this and Bush’s executive order governing agency regulations certainly are warning shots to anyone who thinks that Bush is a lame duck with two years left.