Key lawmakers (Republican) cast doubt on Social Security Crisis

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As much as I would like a private account, I seriously doubt that much will become of this as the House and Senate are very afraid of the voting seniors.

Key Lawmakers Cast Doubt on Social Security 'Crisis'



By Adam Entous

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

Would taxing imports be a good idea? Maybe for both SS and the trade deficit?

 

[Spencer278]

Yes lets get into a trade war so we can speed even more on that dead horse, because the bady boomers refused to save for their own retirment.