Bush weighs Social Security tax hike

PORTSMOUTH, N.H. - President Bush says he has not ruled out raising taxes on those who earn more than $90,000 a year to help bolster Social Security’s finances.

But what he didn't mention is what he told a group of regional newspapers Tuesday, at the White House, that, for the first time he is now willing to consider Social Security payroll tax increases for higher income taxpayers.

Under the current system, payroll taxes are paid only on the first $90,000 in wages. Bush has repeatedly said that he opposes raising taxes, but his advisers have been intentionally vague about whether he would also rule out subjecting a greater share of pay to the existing tax.

Asked directly, Bush said that he would not rule out raising that cap, though he does not want to see the payroll tax rate go up. The rate is now 12.4 percent of pay, split between workers and employers.

At the White House, Bush indicated that for the first time he is now willing to consider Social Security payroll tax increases for higher-income taxpayers.

‘Interested in good ideas’
“The one thing I’m not open-minded about is raising the payroll tax rate. And all the other issues go on the table,” Bush told a roundtable of regional newspapers, according to an account Wednesday in the New Haven (Conn.) Register.

"I’m interested in good ideas. People need to come forth with good ideas. The one thing I won’t do is negotiate with myself," Bush added.

"The tendency in Washington is, ‘You play your cards now, and we’ll decide whether we want to play ours.’ Well, I’m not going to do that. I’m keeping them close to the vest," Bush said.

White House clarifies
The story was published as Bush, returning to the road Wednesday to push his campaign for Social Security overhaul, used a populist-style appeal here to sell his idea of personal accounts to independent-minded New Hampshire.

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