The COVID-19 pandemic has wreaked havoc on the American economy, leading to a loss of revenues to the federal government. Among the many revenue streams that the federal government has is the payroll tax, which is a dedicated revenue source for Social Security and Medicare hospital insurance. Even before the pandemic, these social insurance programs were facing insolvency. The pandemic is certain to worsen the outlook for these programs.

Democratic presidential candidates like Elizabeth Warren and Cory Booker have made inequality a central issue in the campaign. But their plans for minimum-wage hikes, wealth taxes and income-tax rates of 50% to 70% would restrain the economy and hurt all Americans. At least they have ideas. Republicans seem to have few of their own to boost the wealth of working- and middle-class people, ceding the debate to the Democrats and their ill designs.

Since Democrats took control of the House, there has been no shortage of bad legislation that has either been pushed through the lower chamber or advocated by progressives. Democrats were set to consider yet another “caps deal” to bust its own spending maximums set under the Budget Control Act. The Democratic leadership has pulled it from the schedule as progressives and moderates in the party disagree on spending levels. Progressives, of course, want more spending on domestic programs.