Bush Retains Belief In Social Security Reform

From Charles Hall’s Social Security blog at http://socsecnews.blogspot.com/:

It sounds as if the President is interested in a deal that would go something like this. Democrats would get to raise the FICA tax and cut Social Security benefits (and we all know they are eager to raise taxes and cut benefits) and the President would get some sort of private accounts as an add-on to Social Security. Basically, the President wants to reluctantly agree to let the Democrats do the unpopular stuff, while he takes credit for anything that might be popular. From the Washington Post:

Bush’s new flexibility on Social Security is part of a larger White House plan to renew the effort to tame the rising costs of government entitlement programs as the nation’s population ages. Treasury Secretary Henry M. Paulson Jr., who enjoys strong credibility among Democrats and Republicans, has been making the rounds on Capitol Hill to talk about restructuring Social Security, emphasizing that there are no preconceptions.

Administration officials have said the White House is willing to listen to other ideas, including personal savings accounts that do not involve diverting Social Security payroll taxes, as well as higher payroll taxes to help cover the expected growth in the program’s costs. Still, Bush emphasized that young workers should be allowed to divert a portion of their Social Security taxes into private retirement accounts, a proposal that went nowhere in Congress last year.

“I will tell you this: In an issue like this, unless the president tries, nothing is going to happen,” Bush said. “Without presidential involvement, nothing will happen. So we have a chance, and I’m going to work it.”

Posted in Uncategorized

Comments are closed.