Another path to Democratic victory on Social Security

Although I believe the Democrats can stymie the President's efforts to "reform" (or destroy) Social Security, some believe it's also important for the Dems to come up with an alternate idea of their own. As E.J. Dionne reports, Rep. Rahm Emanuel (D-IL), the new Chairman of the Democratic Congressional Campaign Committee, has come up with one such idea.

Emanuel and his former Clinton administration colleague Gene Sperling have worked on a series of proposals to create new private retirement accounts for workers without pensions. They would not be carved out of Social Security but financed separately. One way of covering the costs of these accounts: blocking the total repeal of the inheritance tax, as envisioned by Bush, and using the proceeds from levies on large fortunes to help workers who have little savings begin building their own nest eggs.

Such proposals have potential appeal across philosophical lines. Centrist Democrats are keen to increase the personal savings rate, particularly of lower-income workers. Liberal Democrats are angry at the skew of Bush's tax policies toward the very wealthy, represented most dramatically by the obliteration of estate taxation. It is no accident that Emanuel and Sperling both worked for Bill Clinton, a president skilled at blending social justice concerns with a market orientation.

This is a great idea, and although I believe the Democrats can block the Bush's plan without an alternative of their own, it's great to see that at least one Dem has come up with a thoughful and effective plan.