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...some of whom still aspire to fiscal responsibility and fear that the President's proposal, when it comes, will break the bank. Others are afraid the Democrats' ancient entitlement demagoguery-the Republicans want to steal your retirement!-still has sting. Why on earth didn't the President lead with tax reform, which is always fun, incomprehensible to the public and inevitably profitable for the G.O.P.'s traditional Gucci constituencies...

Author: /time Magazine | Title: ...And Here's How To Do It | 1/16/2005 | See Source »

...Attorney General-designate Alberto Gonzales last week for allowing the White House to loosen the rules on torture. This week, praise goes to his Social Security reform plan. Graham actually approaches fiscal sanity. He would offer individuals a chance to invest up to $1,300 of their payroll taxes per year in any of five government-approved funds, ranging from stock indexes to private bonds to government paper-or to stay in the current system. He would pay for this by raising the cap on the Social Security payroll tax from $90,000 to $200,000, and by changing...

Author: /time Magazine | Title: ...And Here's How To Do It | 1/16/2005 | See Source »

...would be dismal. Losing The Controls The French government has pledged to support "national champions" in strategic industries vital to the country, such as pharmaceuticals, aircraft manufacturing and... video games? Amid a national debate over industry policy, Paris is close to a deal to give 325 million in annual tax subsidies to France's video game publishers, on top of the 35 million it already hands out to promote innovation. The industry accounts for just 10,000 jobs and about 31 billion in revenues, but it has leapt to the center of national attention following the December purchase...

Author: /time Magazine | Title: Bizwatch | 1/16/2005 | See Source »

...created the program that was the signature of his New Deal. Just as Bush believes democracy has the power to transform places like Iraq, so too is he convinced that privatization of Social Security could recharge America's future. The central idea is to take a portion of the tax every worker pays into the Social Security system and put it into a savings account that each individual can decide how to invest. By turning every American into an investor, and a government safety net into a system that rewards judicious risk and individual initiative, Republicans believe they can change...

Author: /time Magazine | Title: Is There Really A Crisis? | 1/16/2005 | See Source »

...most ardent Republican supporters of private savings accounts say that Bush, having decided to take the plunge, should go all the way. He's expected to propose allowing workers to put one-third of the 6.2% payroll tax that is deducted from their paychecks into individual accounts. But advocates like Gingrich and antitax activist Grover Norquist want to know, Why not more? "It's going to take exactly the same amount of energy," Gingrich says. "You are better off trying to get the largest possible account." However big the plan, Bush recognizes that the politics inside his party are daunting...

Author: /time Magazine | Title: Is There Really A Crisis? | 1/16/2005 | See Source »

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