Posted on 01/23/2005 6:34:03 PM PST by Middle-O-Road
WASHINGTON (Reuters) - Key Republicans in Congress on Sunday questioned White House assertions that the Social Security (news - web sites) system was in crisis, one of President Bush (news - web sites)'s justifications for acting now on private accounts, and said new taxes should be considered.
House Ways and Means Committee Chairman Bill Thomas said on NBC's "Meet the Press" that Congress should "look beyond" the payroll tax to fund the Social Security retirement system and consider a value-added tax and other changes.
Though Bush said he will oppose tax increases for Social Security, Sen. John McCain (news, bio, voting record), an Arizona Republican, told CBS's "Face the Nation" that a hike in payroll taxes "has got to be on the table" along with other financing options.
Thomas called the retirement system's finances a "problem" rather than a crisis, distancing himself from the crisis terminology used by the White House in seeking public support for creating private accounts.
"I think 'problem' really is what we're dealing with," said Thomas, when asked if he thought it was a crisis.
In a separate interview, moderate Republican Sen. Olympia Snowe (news, bio, voting record), of Maine, questioned the White House's proposals and strategy, a sign of trouble for Bush in the Senate.
Snowe said she does not object to personal savings accounts "per se," but told CNN: "I'm certainly not going to support diverting $2 trillion from Social Security into creating personal savings accounts."
TAXING IMPORTS?
A member of the Finance Committee, which will craft any Social Security legislation in the Senate, Snowe complained that the "public discussion thus far, without a specific proposal, has created and enhanced a lot of confusion and fear among seniors."
She said there are "various scenarios and interpretations" about the "urgency" of the Social Security problem, despite White House assertions.
SEEK OTHER OPTIONS
The comments -- coming days after Bush's second inauguration -- cast doubt on the prospects of his Social Security plan. He will need moderate Republicans like Snowe to overcome stiff Democratic opposition in the Senate.
Democrats and other critics say Bush, by warning of a crisis, is trying to scare Americans into supporting his plan to let workers shift part of their Social Security payroll taxes into private accounts to invest in stocks and bonds.
Thomas said it would be "difficult" politically and "stupid" economically to raise the payroll tax to try to improve the system's finances.
One of Congress's most powerful voices on tax policy, he said upping payroll taxes or changing the retirement age "aren't long-term, permanent solutions," adding, "Why not look at other options?"
Asked where the money could come from, if not the payroll tax, Thomas pointed to value-added taxes on imports, like those used by some European nations.
"The United States is the world's largest importer and the world's largest exporter, and our tax system is out of sync with the rest of the world, ... That at least needs to be examined," Thomas said.
The Republican president has made revamping the 69-year-old Social Security system a top domestic priority, citing projections that it will run into the red in 2018 and will exhaust its trust fund by 2042 as the huge postwar "baby boom" generation retires.
Opponents counter that even under pessimistic scenarios, workers and employers would still pay into the system and benefits, although reduced, would still be paid.
On Sunday, Bush was at the Camp David presidential retreat preparing his State of the Union address, in which the Social Security overhaul is expected to figure prominently.
Thomas, a California Republican, caused a stir in Washington last week by accusing Democrats of "beating what will soon be a dead horse." On Sunday, Thomas said: "I didn't say it was dead on arrival."
Thomas said the president, at a recent economic forum, used the term "problem" 27 times to describe the Social Security system's finances, rather than the word "crisis."
But Bush said in December, "The crisis is now." And other top White House officials have used the term "crisis," or have called it a "crisis situation," including budget director Joshua Bolten and spokesman Scott McClellan.
If they turn to a VAT or payroll tax increase... and abandon personal retirement accounts... I see no reason to continue voting Republican. If you can't stick to your guns on basic issues of economic freedom, you don't belong in government.
Hiking the payroll tax while also suggesting a guest worker permit for illegal aliens (depressing wages in for many Americans) would be political suicide.
RINOs, as usual join in with the Democrat talking points. Maybe next they'll re-run that oldie-but-goodie from the 2000 election, "risky scheme"
1) She agrees that "sosh security" is not "savings". IE: You really don't have any right to the money. It's not your "personal savings". 2) Diverting! Diverting! LOL! They have "diverted" all the money already! It sure isn't in a "lock box".
It's amazing that Martha Stewart is in jail yet Congress is full of people we should look up to? After how they have squandered taxpayers money. Well, at least Kerry was not elected. Imagine how much money that numbnuts would have urinated off.
GD the US Congress!
The problem is that no one agrees on this particular subject, therefore, not enough votes to pass.
And in my case, I don't support a transition to personal accounts if it costs us $2 Trillion to get there. Much too costly.
Welcome to Washington DC, 2005. That's exactly what they're proposing.
you are spouting demoncrat talking points I see.
$2 Trillion is $800 for every man, woman and child alive in America today. Are you ready to fork it over for your family to open your savings account?
By the time the pols get through with this, we'll be lucky if it ONLY costs $800 per American.
You got your fax today on the DU talking points obviously.
I'm cheap and I don't want Congress stealing more of my money.
I'd listen to an Islamofascist Nazi if their argument made sense and saved me money.
Social Security is a problem without a solution. Burn in hell FDR.
Well, at the risk of sounding a bit over the top myself, you are right. Martha Stewart is in jail, and there must be thousands of Government workers who have done far more in terms of waste fraud and abuse who should be in a cell instead of her. True, Martha was wrong. But she didn't piddle and waste away Billions of dollars from hard working people.
thats the problem - this gives the money back to the people, but I think you are polluted and can't see that, go back to DU - I am sure some islamofascist nazis are there to talk to.
Social Security is a welfare program as it is.
Ditto on that.
The cap is about $89,000.00 for f.i.c.a. taxes, which makes most Americans pay 15% of all their yearly income.
The cap should be removed. Lower the rate.
Problem solved one way or the other.
One of the hot button "issues" - the big Third Rail - that all politicians have avoided, since I remember, is Sosh Sccurity.
How screwed up it was / is - won't be funded by current worker levels vs. the amount of those that dare to retire, etc.
Now - because GWB actually said he wants to attempt to fix it - nothing is wrong with it. Tis a mere scare tactic by the evil Republicans.
What the He!! am I missing here???
LVM
How does it give money back when savings are offset by the costs? Just because you want to spend MY money to open YOUR account doesn't mean I have to allow you to do so.
This is one Republican proposal that I can't agree with without major changes.
Yes, we gain control with our own accounts. But at what cost?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.