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Commentary: Op-Ed by Senators Graham (R-SC)and Conrad (D-ND)
December 23, 2004
An op-ed authored by Senators Lindsey Graham (R-SC) and Kent Conrad (D-ND) in USA Today sets out guidelines for the Social Security debate that could form the foundation for a constructive dialogue toward a bipartisan solution to the challenges facing Social Security. • Social Security must be strengthened. These principles could form the basis for bipartisan agreement on the goals of Social Security reform and the process for moving forward. By focusing on areas where Democrats and Republicans agree and acknowledging the tradeoffs that will be required regardless of how we strengthen the system, the Senators have outlined a path for moving forward in a serious and responsible manner. Unfortunately, the debate has already become polarized, with partisans in both parties refusing to acknowledge the tough choices that will be necessary. Democrats have chosen to downplay the need for changes in the Social Security system and focus on criticizing reform proposals without offering a solution of their own, while many Republicans continue to advocate free-lunch plans which entail enormous unfunded transition costs and rely on optimistic assumptions. The administration for its part has raised alarm bells among centrist Democrats by downplaying the transition costs and making statements that have been interpreted as taking options off the table. The op-ed by Senators Graham and Conrad is a refreshing break from the partisan rhetoric that has dominated the debate thus far. There are very real and legitimate differences of opinion regarding the best approach to strengthening and securing Social Security for future generations. However, as this op-ed demonstrates there is more room for bipartisanship on this issue than the overheated rhetoric from both sides would suggest. Senator Graham has shown tremendous leadership in working to develop a bipartisan approach to Social Security reform. He has expressed a willingness to break with Republican orthodoxy in order to limit the impact of reform on the unified budget during the transition period. He has done this through putting forth options such as increasing the cap on wages subject to the payroll tax. While increasing the payroll tax base has shortcomings as a long term fix for Social Security finances, it has considerable potential as a mechanism to offset the near term costs of moving toward a prefunded system. Although initial comments by the administration appeared to rule out considering this option, in recent days administration spokesmen have gone to pains to keep it on the table. In separate interviews last weekend, John Snow, Treasury Secretary, left the door open to an increase in the payroll tax base as part of a comprehensive plan to fix Social Security and White House Chief of Staff Andrew Card refused to rule out changes in the tax base. Democrats who are interested in a responsible, bipartisan solution to Social Security need to demonstrate a similar willingness to break with party orthodoxy on the issue of individual accounts, particularly if the accounts are financed in part by new revenues to the system as Senator Graham is suggesting. The division in Republican ranks between advocates of the free lunch approach and proponents of a fiscally responsible approach provides an opportunity for centrist Democrats. This division can allow them to have a positive impact on the debate by working with Republicans who are interested in seriously addressing the fiscal challenges facing Social Security in a responsible manner. The American people deserve a modernized Social Security system that provides true retirement security for all Americans, while reducing the pressure on future taxpayers, as well as other budgetary priorities. Achieving this goal will require bipartisan cooperation and a candid discussion of the choices facing policymakers. Senators Graham and Conrad have taken the first step in giving the American people the debate they deserve on this important issue. |
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