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Raising the Payroll Tax, btw, will cause a much greater revolt than taxation of the benefit, itself.

Not really. You could raise the payroll tax from 6.2% to 6.5% and very few people would complain, especially if it was explained that the last time the rate was raised was 1990. I am not in favor of any tax increases. I want the system privatized.

Nothing is going to happen this year or next [mid-terms] on SS. Obama is going to appoint some phony commission that will study the issue and make recommendations. This has been done many times being with Monyihan. But the status quo is not an option. Something has to be done by 2016. My guess is that Congress will kick the can down the road to make SS solvent a few more years rather than make substantive, long term reforms, just like they did in 1983.

Do you WORK for AARP or something?

You really are living in La La land if you think a higher payroll tax is a politically viable alternative.

It is MUCH easier, politically, to adjust a formula that nobody understands anyway (Including you?) as to the taxation of SS benefits.

So what if the payroll tax has not been raised for some time? If you think that taxes MUST be raised every few years, regardless of economic or political consequences, you are not in the real world -— and before long we will be at 80% total tax rates!

The REASON that I PREDICT that taxes on the SS benefit will be key to any political solution is obvious to most of us who study the issue very long:

Any “tax on benefits” will be partially “self correcting” -— reducing the strain on the system caused by COLA increases and reducing the strain on the system caused by those newly retired who begin to draw benefits.

You will be making the system itself a source of funds for the system.

Politically, the under 65 crowd will NOT be excited about paying more into the SS system when the Trumps and Gates of the world are still getting 15% of their benefits completely tax free.

Actually, a large advertising campaign, telling the public:

“SOCIAL SECURITY IS BROKE”
“MEDICARE IS BROKE”

“Shouldn't we fix the programs we already have, before we stack even more debt on our kids and grand kids?”

“Shouldn't we make sure that Social Security and Medicare will be there, for our kids and grand kids, before we come up with another program that the government can not afford?”

“Shouldn't we make sure that China is willing to loan us the money for these new programs, before we spend all of this new money?”

Such a strategy, of pitting current and near term retired people AGAINST expensive new spending programs would do a great deal to slow down the freight train of socialism.