The Candidates Take on Social Security

We all know the impending problems with Social Security and Medicare. So far politicians have been able to mobilize their base by talking about solutions, but talk has not translated into policy. This article reports:

The McCain strategy:

Obama said McCain's campaign has suggested trimming Social Security benefits and raising the eligibility age...McCain has not specifically embraced such plans. But by saying "everything is on the table" in discussing changes to Social Security, he has opened himself to such criticisms from Democrats. Obama also said McCain wants to privatize a portion of Social Security. McCain has praised the notion of letting younger workers place a portion of their Social Security taxes into a package that is invested and follows them to retirement, but he has not made it a campaign promise."

The Obama strategy:

Obama cited his proposals to place a new Social Security payroll tax on incomes above $250,000 and to eliminate federal income taxes for older people making less than $50,000 a year. He also said he would "allow the government to negotiate with drug companies to lower costs for seniors, and we'll allow reimportation of drugs from other countries and ensure their safety."

Nothing new here for either party. Democrats prefer taxing the rich. I assume Obama would cap benefits for the rich as well, making Social Security more of a social safety net and wealth transfer program than it already is. Republicans preferring to cut benefits at the margins - McCain has discussed adjusting the cost of living benefit increase to more closely match the inflation rate. McCain has also discussed partial privatization, something economists have been talking about for quite some time.