Bush May Back Curbs on Social Security Accounts
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The president's support for limits on the costs and risks of privatization could help mollify the plan's critics.
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Federal Reserve Chairman Alan Greenspan urged Congress on Wednesday to take a go-slow approach in setting up the private Social Security accounts favored by President Bush. The president said he wasn't ruling out taxing high-income workers more to help the retirement program.
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President Bush will use a two-day  economic conference this week to try to build support for a  planned overhaul of Social Security his critics say could put  the retirement system at risk.
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PORTSMOUTH, N.H.  - President Bush suggested in an  interview published on Wednesday he may be open to raising the  cap on Social Security taxes paid by high-income earners, but  told a crowd in New Hampshire he would reject an increase in  the payroll tax rate.
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President Bush acknowledged on  Thursday that the financial agenda for his second term,  including Social Security reform and spending curbs, will face  stubborn resistance in Congress.
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With lawmakers expressing doubt  about its proposal to restructure the Social Security  retirement system, the White House acknowledged on Wednesday  that its plans for investment accounts are likely to undergo  changes to win approval.
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President Bush warned younger  workers on Tuesday of a grim future for their Social Security  benefits in a bid to counter increasingly vocal opposition to  his plan to add private accounts to the retirement program.
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President Bush plans a "big January surprise" if re-elected by moving quickly to allow some private Social Security accounts, which will reduce benefits for retirees and swell the U.S. deficit, Democratic Sen. John Kerry claimed on Sunday.
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MAIN TOPIC: President Bush will offer new details about his plan to let younger workers divert some of their Social Security payroll taxes into personal investment accounts. Experts say while the president will seek to reassure Americans who are at or near retirement, he will leave larger questions unanswered.
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The challenge awaiting President Bush is to offer a plan for restoring the Social Security system to financial balance.
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The personal investment accounts that are the centerpiece of the Bush administration's Social Security proposal would be modeled after a popular federal retirement savings plan that offers a mix of index funds with microscopic administrative fees.
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A SOCIAL SECURITY PROPOSAL: The Bush administration is considering allowing younger workers to invest nearly &#36;2 of every &#36;3 from payroll taxes in private accounts, up to &#36;1,000 to &#36;1,300 annually.
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President Bush is selling private investment accounts, financed with a share of current payroll taxes, as a way to solve Social Security&#39;s long-range financing problems and benefit younger workers.
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President Bush on Thursday ruled out raising taxes to finance the centerpiece of his second-term domestic agenda: a Social Security overhaul to help the system survive an impending wave of retiring baby boomers.
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President Bush is considering asking Congress to freeze domestic spending next year or cut it slightly, even as he prods lawmakers to allow younger workers to divert some of their Social Security taxes into personal investment accounts.
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President Bush ruled out raising  payroll taxes to help pay for Social Security reform on  Thursday, leaving him few options other than a sharp increase  in government borrowing to bankroll transition costs estimated  at up to $2 trillion.
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President Bush's advisers have settled on a proposal for structuring the personal accounts they hope to create in Social Security, while on Capitol Hill, Senate Democrats were launching an effort to defeat the plan altogether.