And this incremental change will barely disturb the plans of those persons nearing retirement. Several commissioners commented favorably on Rostenkowski's proposals at commission meetings. Those moderate changes could make a huge impact on Social Security's solvency. Rostenkowski's benefit cuts would reduce the Social Security deficit by another 25 percent. Robbins and the Cato Institute's Moore argue that higher taxes on payrolls and benefits would retard economic growth and make entitlement programs less solvent.
Most people get their retirement incomes from personal savings.
Taxing Social Security benefits isn't the only tax increase with support on the commission, however. The liberals asserted that wealthy Americans unfairly benefit from those tax exemptions and that cutting them could raise federal revenue. He refused to endorse the commission's initial report because it did not include a statement saying that no one has a constitutional right to the income of another. For his part, Cox proposes subjecting the entire federal budget, except for Social Security and interest on the debt, to annual review. Federal spending programs would have specific price tags attached, and Congress would have to approve the price.