As Paul Krugman noted in the New York Times this morning, social security overhaul comes with a lot of risks. He points out other countries have dabbled in privatization and is baffled at the lack of understanding of their experiences. For example, in Chile's program, privatization has caused management fees to be as high as 20 precent, whereas in the United States currently, 99 percent of social security revenues go towards benefits. This is another pitfall of privitization that is not mentioned by the Bush administration. Krugman's column is worth a read.

Also, click here to read the latest Center on Budget and Policy Priorities report about price indexing and how Bush's reform proposal could significantly reduce benefits in the years to come.

The House and Senate voted overwhelmingly on the evening of September 23 to extend three tax cuts amounting to $146 billion total, with $13 billion set aside for a variety of business tax breaks. Because the costs of the tax cuts are not offset at all, many believe that they will end up hurting the middle class in the long run.

The Center on Budget and Policy Priorities released a report highlighting how the "middle class" tax cuts will likely end up making the middle class net losers, once the cost of paying for the tax cuts is considered. The report can be read here.

The legisltation, which was passed 92-3 in the Senate and 339-65 in the House, extends the $1,000 per-child tax credit and tax breaks for married couples, and prevents the 10 percent income tax bracket from being applied to smaller amounts of earned income. The legislation also extends alternative minimum tax relief for one year.

Click here to read a Washington Post article with further details on the new tax legislation.