Treasury Secretary Henry Paulson has quietly entered discreet conversations with members of Congress about a tax increase for upper-income Americans as part of bipartisan Social Security reform.
Since the 2006 Republican election defeats, the White House has not ruled out raising the cap on income subject to the Social Security payroll tax. With or without such a tax increase, Democrats will reject President Bush’s proposal to carve private retirement accounts out of Social Security.
Paulson is the first of Bush’s three secretaries at the Treasury to participate in Social Security reform negotiations. Paul O’Neill and John Snow were not actively engaged with the issue.
Democrats, Rejoice: For the Bush Tax Hike Cometh!