To me, the most painless way is to raise the cap on withholding

That's what I said. Instead of the FICA going away at 102K it continues to the end of the year, for everybody. That is a much more fair solution. It also might generate more funds for SS by virtue of the sheer numbers of wage earners contributing. But, I don't agree with you that it will be painless. Take somebody earning say 150K (not exactly a Kings' ransom); they would pay 3,000 dollars extra tax without the "hole" in the donut. What Obama proposes does ease the burden, for most, especially middle class, but goes after the rich to subsidize, which I don't like in principle. His proposal is very politically crafty, because it would certainly help fund the plan, but does so in a way which would please the majority of the population. For people earning under 102K, nothing changes, the ones with slightly more income get an enormous break (as they do now), but the smaller percentage of 'wealthier" people get penalized; their numbers are not large enough to hurt him in an election, so he can feel comfortable with revealing his proposal more clearly and at least I admire his honesty in stating the figure limit he has in mind, instead of a surprise later, come tax time.

I fully support privatization and think it should be an option for those who chose to manage their own investments. Those who cannot manage their own portfolios, or who don't want to, can stay with the current plan. It should be at least an option. I don't agree with you there.