Bush weighs Social Security tax hike

Some have suggested that taxing a greater share of earnings would be a good way to either help bring the system into long-term solvency or to help pay for the transition to private investment accounts that Bush is pushing.

White House spokesman Trent Duffy said Bush will consider this option along with many others proposed. “Just because he said it was an option doesn’t mean he embraced it,” he added. Bush made the comments in the interview on Tuesday.

Some critics of Bush's plan have sought to raise the income ceiling to $150,000.

Sen. Charles Grassley, R-Iowa and chairman of the Senate Finance Committee, said Sunday he expects any reform would include a ceiling above $90,000.

INTERACTIVE Everything you need to know about Social Security

Under the current system, payroll taxes are paid only on the first $90,000 in wages. That ceiling rises each year with inflation — last year it was $87,100.

Sen. Lindsey Graham, R-S.C., and other lawmakers have argued that Bush’s plan for personal accounts, which will cost more than $1 trillion up front, would be more attractive to Democrats if it is financed by raising taxes on the wealthy.

If Congress did nothing but lift the cap entirely and therefore subjected all wages to the tax, Social Security would be financially balanced for 75 years, though the system would again face trouble after that, according to one economic analysis.

Graham said the president should get credit for having the courage to take political risks to save Social Security.

“By raising the cap above $90,000, we can get money to save Social Security from people who can afford to give it and will help them down the road because you won't have to have massive tax increases when the system fails,” Graham told NBC News.

Pitch to crowd
In his speech Wednesday, the president used his “ownership society” pitch as he appealed to the voters of New Hampshire.

“Investors aren’t just Wall Street people, as far as I’m concerned,” he told 2,000 people packed into an airport hangar. “I think every citizen, every citizen has got the capacity to manage his or her own money — and if they don’t, we’ll help them understand how to and the rules will be such that they can.”

“I believe the so-called the investor class ought to be every American, regardless of his or her background,” Bush added, eliciting cheers from an audience assembled by the state’s all-Republican congressional delegation.

With his quick visit here, Bush has now hosted Social Security-focused forums in eight states since his Feb. 2 State of the Union address.

MORE FROM POLITICS

Politics Section Front

Obama says ‘the worst is behind us’   Obama: Vacation plans hinge on health care Alabama Democrat to switch parties   Senate votes nudge health care bill forward NYT: Dems face challenge to merge health bills Could Ireland’s budget cuts be a model for U.S.? States’ jobless funds going ‘absolutely broke’ White House picks new cyber czar Senate Dems eye finish line for health bill Abortion compromise was carefully crafted Politics Section Front   Add Politics headlines to your news reader: