Keep it simple. Republicans in Congress should agree to raise the debt limit under one condition: fix Social Security.
And I’ll offer the fix:
- Continue incrementing the retirement age 1/2 year each year until it reaches 70 years
- Index the retirement age thereafter to life expectancy
- Raise income limit to which the payroll tax applies and bring all into balance
Do not budge on #1 and #2. Allow negotiating room on #3. Perhaps lower the overall tax rate and increase the income limit a bit more. Alternately could means test and leave taxes as the are (but the minor tax adjustment is simpler and in my opinion preferred).
That’s it. And then let’s get on with debating the 2012 fiscal year budget.