Dean Says Raise Social Security Tax Cap on Wages

September 17, 2003

Leading presidential hopeful Howard Dean is learning the hard way that his words count, especially on election issues like Social Security. For example, Jodi Wilgoren of the New York Times writes, "Dr. Dean said in 1995 that he 'absolutely' believed in raising the Social Security retirement age to 68 or 70. This June [he said] that it was something he would consider and then in August said he had never favored doing so."

On the September 1 edition of CNN's Crossfire, Dean interviewed with news anchor Judy Woodruff, in hopes of clarifing his muddled position on Social Security. Their exchange follows:

WOODRUFF: As you've done better in your campaign, you have changed or modified your position on a couple of different issues. For example, on Social Security, you once talked about raising the retirement age to 70. A few months ago, you said you'd consider raising it to 68. Now you say that's not an option, that you can find another way to fix Social Security.

DEAN: Well, I don't think there's anything different than I've done than anybody else. Some of the people who have gone after me on that have had their own prescriptions, for example, for means testing Social Security or raising the retirement age and looking at different things. You have an obligation to look at different things.

"What we may have to do, however, is eliminate or reduce—excuse me, increase the cap on wages. Right now, a CEO who gets $40 million pays the same Social Security tax as somebody who makes $86,000. That doesn't make any sense. That's how you can fix Social Security if you have to fix it," he concluded.

What is missing is an acknowledgment of another way to solve Social Security's crisis, one that raises no payroll tax, cuts no benefits, and yet allows workers the option of controlling their money. Although polling studies have concluded that a personal Social Security system is attractive to the majority of voters, not one of the presidential candidates has publicly considered the option of personal accounts. If these candidates are eager to differentiate themselves from the pack, individual retirement accounts might provide the solution.

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