The payroll tax holiday from the 2009 stimulus “drained” $105B from Social Security, and this year’s proposed extension will drain another $267B.
I wonder if the Democrats are still cheering their partisan obstruction of reform (most recently in a long history of demagoguery on the issue) in 2005…
This particular issue is not hard to “fix,” if by “fix” we mean merely putting it back on more solid financial footing: gradually increase the retirement age, peg COLAs to inflation instead of wages, maybe throw in some progressive indexing or other form of means testing for good measure. We could also raise the wage cap against which the payroll tax applies, but that directly raises the cost of labor and will eliminate jobs.
The issue is harder to fix in the sense of changing it from a quasi-ponzi scheme into an actual retirement asset for its participants -one of our major parties needs the issue every 2 or 4 years. So instead we’ll likely keep taxing the young to subsidize affluent boomer retirements.