One of the more compelling areas in the debate over the future of Social Security is payroll taxes. It’s an area where even many congressional Republicans feel there’s room to move. To be sure, few, if any, lawmakers are open to moving the payroll tax beyond its 12.4% rate, but many are anxious to consider expanding the tax to include income beyond a worker’s first $90,000, as the law currently states.
But the discussion has been erratic and inconsistent, in large part because the White House can’t make up its mind.
First, an increase in payroll taxes was off the table.
“We will not raise payroll taxes to solve this problem.” — Bush, Dec. 9, 2004
Then, they were on the table.
Administration aides yesterday also didn’t rule out expanding the amount of wages subject to the payroll tax. — Wall Street Journal article, Feb. 3, 2005
Then off the table again.
“[The president] does believe we should not increase payroll taxes.” — Scott McClellan, February 10, 2005
Then on the table again.
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. — AP, February 16, 2005
And now apparently off the table again.
Pushing payroll taxes up enough to keep the Social Security system healthy would be an imprudent move that would damage the U.S. economy in the long run, Treasury Secretary John Snow said on Monday…. “That kind of tax increase would have significant, negative economic repercussions,” Snow said. “Increasing payroll taxes hurts the economy and it hurts job creation, period.” — AP, yesterday
Any guesses on when the Bush gang will change its mind again?