The Corner

Politics & Policy

A False Attack On Cruz’s Tax Plan

Rubio consultant Todd Harris is tweeting out a Fortune article that claims that Senator Cruz “wants to raise taxes on your grandma.” The argument goes that Cruz’s plan includes a value-added tax, which would raise consumer prices, including for retirees who are “living off Social Security.”

The article is wrong: Seniors would not take a hit, because of an important feature of federal law. The words “cost of living adjustment” or “COLA” do not appear in the article. Assuming that consumer prices would increase under Cruz’s plan (which I believe is indeed probable), federal law will protect retirees because it will automatically increase their Social Security checks. Retirees would lose purchasing power only to the extent that they relied on income streams that a) come from outside of Social Security and b) include no protection for inflation.

The people who could take a bigger hit from the plan are near-retirees. Assume that the Cruz plan raises prices but leaves wage rates the same. Initial benefit levels will be calculated based on those wage rates, but those wages will now buy less. So these future retirees would take a hit. Of course it is also true that most conservative plans for entitlement reform would involve paying lower benefits than the government is currently saying it will pay to people who are not yet retired.

(disclosure)

Ramesh Ponnuru is a senior editor for National Review, a columnist for Bloomberg Opinion, a visiting fellow at the American Enterprise Institute, and a senior fellow at the National Review Institute.

Most Popular

Politics & Policy

A Bizarre and Revealing Biden Interview

William Voegeli of the Claremont Review of Books brought up a strange Joe Biden interview from 1974 I hadn't seen before in which Biden emerges as arrogant and determined to make more money, one way or another. Biden also speaks of his first wife Neilia, who had died two years earlier, in unusually frank ways: ... Read More
Politics & Policy

A Bizarre and Revealing Biden Interview

William Voegeli of the Claremont Review of Books brought up a strange Joe Biden interview from 1974 I hadn't seen before in which Biden emerges as arrogant and determined to make more money, one way or another. Biden also speaks of his first wife Neilia, who had died two years earlier, in unusually frank ways: ... Read More
Media

The Unseemly Urge to Excuse Jeffrey Toobin

Jeffrey Toobin, legal analyst for CNN and The New Yorker, was suspended from his jobs and subjected to a round of public mockery for visibly exposing himself while masturbating on a Zoom call with New Yorker colleagues. The call was designed to role-play post-election scenarios for a contested election; Toobin ... Read More
Media

The Unseemly Urge to Excuse Jeffrey Toobin

Jeffrey Toobin, legal analyst for CNN and The New Yorker, was suspended from his jobs and subjected to a round of public mockery for visibly exposing himself while masturbating on a Zoom call with New Yorker colleagues. The call was designed to role-play post-election scenarios for a contested election; Toobin ... Read More
Elections

How Trump Should Approach the Final Debate

The so-called mainstream polls of the swing states show the race narrowing. If the trend continues at the current rate, President Trump could poll even in two weeks—in addition to the “other” polls that show him near there already. So Trump’s mission at the final debate on Thursday is to continue to ... Read More
Elections

How Trump Should Approach the Final Debate

The so-called mainstream polls of the swing states show the race narrowing. If the trend continues at the current rate, President Trump could poll even in two weeks—in addition to the “other” polls that show him near there already. So Trump’s mission at the final debate on Thursday is to continue to ... Read More

The Pollster Who Thinks Trump Is Ahead

The polling aggregator on the website RealClearPolitics shows the margin in polls led by Joe Biden in a blue font and the ones led by Donald Trump in red. For a while, the battleground states have tended to be uniformly blue, except for polls conducted by the Trafalgar Group. If you are a firm believer only in ... Read More

The Pollster Who Thinks Trump Is Ahead

The polling aggregator on the website RealClearPolitics shows the margin in polls led by Joe Biden in a blue font and the ones led by Donald Trump in red. For a while, the battleground states have tended to be uniformly blue, except for polls conducted by the Trafalgar Group. If you are a firm believer only in ... Read More
Media

The Media’s Shameful Hunter Biden Abdication

In an interview with National Public Radio’s public editor today, Terence Samuel, managing editor for news, explained why readers haven’t seen any stories about the New York Post’s Hunter Biden email scoop. “We don’t want to waste our time on stories that are not really stories, and we don’t want ... Read More
Media

The Media’s Shameful Hunter Biden Abdication

In an interview with National Public Radio’s public editor today, Terence Samuel, managing editor for news, explained why readers haven’t seen any stories about the New York Post’s Hunter Biden email scoop. “We don’t want to waste our time on stories that are not really stories, and we don’t want ... Read More