From the WSJ: "The Obama Tax Hike"
Until recently, Sen. Barack Obama took a responsible position on Social Security, noting the urgency of reform and saying all options should be on the table.Surprisingly, it's Clinton (Bill) who evinced a true understanding at what "taxing the rich" by raising the wage cap means with regard to Social Security:
But having cornered himself among Democratic activists whose attitudes toward Social Security reform range from demagoguery to denial, Mr. Obama has recently veered sharply left. He now proposes to solve the looming Social Security shortfall exclusively with higher taxes.
President Bill Clinton considered lifting the wage ceiling modestly, but was skeptical of eliminating it outright. Doing so would "tremendously change the whole Social Security system . . . We should be very careful before we get out of the idea that this is something that we do together as a nation and there is at least some correlation between what we put in and what we get out," Mr. Clinton said in 1998. "You can say, well, they owe it to society. But these people also pay higher income taxes and the rates are still pretty progressive for people in very high rates."Exactly. If Social Security is to remain a "universal" program - and not another vehicle for wealth transfer - everybody needs to get a benefit proportional to the money put into the system. Otherwise, none dare call it universal.