Today, the Social Security Administration (SSA) announced that, in light of the deflation experienced over the past year, there will be no COLA for Social Security benefits in 2010. This will mark the first year without a COLA since automatic indexing began in 1975.

Given that prices have gone down, we find this lack of COLA to be entirely appropriate, and put out a press release today urging politicians not to enact an ad-hoc COLA. As CRFB President Maya MacGuineas explained...

In a recent op-ed, Henry Aaron and Belle Sawhill argued that a value added tax (VAT) – a tax on consumption imposed piece-wise in various stages of production – could help to “bend the revenue curve.” The two argue that health care reform cannot do enough to control the long-term debt, explaining that “Medicare will require increased revenue as the baby boomers retire, even if the program's structure is materially changed,” and that “revenue generated under current tax laws cannot pay for the government services -- health care and everything else."...

Today Congressional Quarterly reported that Congress is feeling pressure to extend the tax credit for homebuyers that was included in the stimulus bill in February. The $8,000 tax break, which applies to first time homebuyers, is designed to revive the housing market. The credit ends November 30 and construction and real estate groups are lobbying politicians to extend it.

Johnny Isakson, R-Ga., plans to introduce legislation that would extend and increase the tax break. Under his proposal the credit would last through June 30 and increase eligibility to include individuals making up to $150,000 and families making up to $300,000...

Sorry for the long silence. Too much Afghanistan makes Jack a dull boy. I’m afraid to report, however, that I have been jolted back to typing by the subject of…health-care reform. Nobody said this was TMZ.

 The Senate Finance Committee voted this afternoon 14-9 to pass the America’s Healthy Future Act of 2009 out of Committee. Republican Olympia Snowe was the only Committee member to break party lines and vote for the bill. Majority leader Harry Reid is expected to begin full Senate debate on a version of the bill which reconciles the Finance and HELP bills in the last week of October. Meanwhile, House Democratic leaders are still working on details of their health overhaul legislation, which will also likely go to the floor for debate in late October...

While Washington is glued to the drama over health care, over the past few days, Russian Prime Minister Vladimir Putin has been in Beijing meeting with Chinese leaders including Premier Wen Jiabao and President Hu Jintao. In a series of communiqués, they celebrated the “strategic partnership” between the two countries and charted a course of future close relations...

In their oped in the Washington Post today, Henry Aaron and Isabel Sawhill argue that raising taxes will be necessary to close the fiscal gap and help pay for the new spending that is part of health care reform. They suggest a VAT dedicated to health spending is the best approach...

On Wednesday, Attorney General Eric Holder and Education Secretary Arne Duncan spoke in Chicago about youth violence following the shocking video-taped incident of a student being beaten outside of Fenger High School on the south side.

Holder spoke about emergency measures to provide more safety including, "metal detectors, locks, surveillance systems and other equipment to help deter crime. These are first steps, and we will do more."...

Over the past few days, the commentariat has been abuzz with advice for President Obama about how to deal with the nation's unprecedented unemployment and underemployment crisis. With the official unemployment rate now standing at 9.8%--and the effective unemployment rate nearly double that--perhaps the president needs all the help he can get.

A variety of proposals are making the rounds, with opinion divided over how best to stimulate job creation. Should government subsidize new hires through tax incentives? Is the administration pursuing a de facto "weak dollar" policy to bolster American exports and manufacturing? What about public investment and infrastructure spending?...

The latest health care legislative compromise being floated is one in which states would be allowed to opt out of offering a public option. Chris Bowers lists the problems with the proposal here. Ezra's more sanguine.

I suppose if someone put a gun to my head and the options were no public option or an opt-out compromise, I'd opt for the latter. (I should point out we're not at the gun-at-the-head stage yet). But it's also important to point out just how perverse the results of this compromise would be...