There’s another way to do the job

Regarding President Bush’s $1.6 trillion dollar tax cut, I feel compelled to throw my two cents into the debate. I’m really not against the idea of a tax cut, or for that matter, the president’s plan to invest part of my Social Security money into the stock market. However, I would much rather see our country’s huge federal deficit paid off first. In my case, I would benefit a lot more in the long run with lower interest rates rather than a few hundred dollars a year in a tax cut.

With that said, I can’t help but wonder if there isn’t another way to accomplish most of the president’s objectives while still being careful with a projected budget surplus that may or may not pan out. So here is what I would like to see happen.

For starters, leave Social Security just the way it is. If the government wants to invest some of my money in the stock market, fine, do it! But start with that $300 rebate you’re talking about giving back to me this year. Let’s call it a Social Security 401K. And in the future if the country really can afford more refunds, then just keep adding them to this Social Security 401K account. And if it becomes apparent that we really can take 2 percent of everyone’s social security taxes without harming the trust fund, then my account as well as everyone else’s is already there and open. This would serve many people much better, I believe, than the plan that is currently being debated.

Even the extremely well off portion of the population would benefit greatly from this as all that new money would spur on business growth while increasing the current sagging stock market. I call this trickle up economics – where everyone, rich and poor, really would benefit in the long run.

I honestly believe, since everyone benefits, this would be fair for all Americans who pay taxes. It also controls tax returns as long as a budget surplus exists. If the surplus falls short due to a recession or other emergency, then the refunds could be curtailed or reduced until such a time that conditions improve. And if the surplus continues to balloon then the refunds could be increased to a higher level.

Who knows? Starting a Social Security 401K tax refund program as I have outlined here might eventually give the president and the Republican Party a tax cut far in excess of the $1.6 trillion that they’re trying to achieve at present. Especially if you factor in the business growth that would occur with the increased investments.

And finally, if most people are lacking in retirement savings as much as I am, and I assume many are, then this is a good and solid plan for the future of all Americans.

Clinton

Talk to us

More in Opinion

toon
Editorial cartoons for Monday, Feb. 6

A sketchy look at the news of the day.… Continue reading

Herald columnist Julie Muhlstein received this card, by mail at her Everett home, from the Texas-based neo-Nazi organization Patriot Front.  The mail came in June, a month after Muhlstein wrote about the group's fliers being posted at Everett Community College and in her neighborhood.  (Dan Bates / The Herald)





(Dan Bates / The Herald)
Editorial: Treat violent extremism as the disease it is

The state Attorney General urges a commission to study a public health response to domestic terrorism.

Comment: End of covid emergency will carry costs for nearly all

Along with an end to free tests, the disease and its expenses will be treated like any other malady.

Comment: Wealth taxes carry too many drawbacks to help states

They discourage savings and investment and it’s difficult to set up a fair system of what they tax.

Comment: Biden’s stock market record pretty close to Trump’s

At similar points in their presidencies, most market measures show little difference between the two men.

Comment: Memphis officials can learn from Minneapolis’ mistakes

After the murder of George Floyd, there were promises of reform, but a lack of specifics stymied the effort.

Comment: Hounding justices’ spouses out of work step too far

Questioning the chief justice’s work as a legal recruiter serves no purpose toward the court’s ethics.

toon
Editorial cartoons for Sunday, Feb. 5

A sketchy look at the news of the day.… Continue reading

Photo Courtesy The Boeing Co.
On September 30, 1968, the first 747-100 rolled out of Boeing's Everett factory.
Editorial: What Boeing workers built beyond the 747

More than 50 years of building jets leaves an economic and cultural legacy for the city and county.

Most Read