Treasury Sec: Fix Social Security Without Tax Hike

WILMINGTON -- Treasury Secretary John Snow said on Thursday the alternative to President Bush's plan to overhaul the Social Security retirement system is probably higher taxes for workers -- something the administration is dead set against, Reuters reported.

“We need to find a way to fix it that is better than that and we need to find a way to fix it that doesn't have a very serious adverse effect on the economy that raising taxes does,'' Snow said at a breakfast speech to business leaders.

Bush wants to let workers funnel some of their payroll taxes into accounts invested in stocks and bonds. Higher returns from those investments would likely offset cuts in benefits in the retirement program, the president has said.

Snow said Bush and his cabinet would continue to push for private accounts as part of a Social Security fix and expressed optimism that Congress would pass legislation this year.

-- NYSSCPA.org News Staff

Posted on 3/24/05