Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, March 3, 1993 TAG: 9303030391
SECTION: EDITORIAL PAGE: A6 EDITION: METRO
SOURCE:
DATELINE: LENGTH: Medium
SOCIAL SECURITY NEEDS MANY ADJUSTMENTS
YOUR FEB. 20 editorial ("Let's see the critics' plan") speaks of purging President Clinton's plan of "smoke and mirrors," then continues with the same illusions. The huge Social Security balance on the treasury's computer is an illusion. It reflects not one thin dime, only treasury bonds. Translation: debt.Revert Social Security to the independent agency it once was. Former President Lyndon Johnson had it included in the federal budget to mask (as in smoke) the true deficit of his Vietnam War's "guns and butter" budget. The federal budget has been reflecting (as in mirror) a false deficit ever since.
Next, include all the "off-budget" (as in smoke) expenditures in the deficit so that Congress, the Clinton administration and we the people can see how truly obscene the deficit really is. Then perhaps Clinton can get Congress to remove the blinders and do something sensible without "smoke and mirrors."
As for Social Security, I believe it should be taxed 100 percent as any other retirement or pension plan. Recover our cost adjusted for 40-plus years.
Adjust the tax code so that those subsisting mostly or entirely on Social Security (Feb. 7 editorial, "Social Security on the table") pay no tax, perhaps even being entitled to a refundable credit similar to the earned-income credit. After all, their checks are based on earned income during their working years.
Clinton says we should save more to keep interest rates down and provide funds for an expanding economy. I agree. Then permit the Social Security agency to invest their surplus in the stocks and bonds on that expanding economy as pension plans and IRAs now do. The federal debt would not then be increased by the surplus as it now is.
Then perhaps the "grossly regressive Social Security tax" could be lowered on our workers who will have to pay most of proposed new taxes, including the "smoke and mirror" taxes on business that consumers will pay via increased prices.
GEORGE F. SNYDER VINTON