Bush Looking Cornered

Despite his faux public-relations campaign, Bush is looking defensive, and he's beginning to stumble on Social Security:

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.

Under the current system, payroll taxes are paid only on the first $90,000 in wages. Bush has repeatedly said that he opposes raising taxes, but his advisers have been intentionally vague about whether he would also rule out subjecting a greater share of pay to the existing tax.

Asked directly, Bush said that he would not rule out raising that cap, though he does not want to see the payroll tax rate go up. The rate is now 12.4 percent of pay, split between workers and employers.

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 has now hosted Social Security-focused forums in eight states since his Feb. 2 State of the Union address. The campaign-style event took him to the home turf of (New Hampshire) GOP Rep. Jeb Bradley, who said during his fist run for Congress in 2002 that "privatization is not the answer" to Social Security's problems.

Though Bush heaped praise on scores of local politicians, from the state's two Republican senators on down, he did not mention Bradley.

"You don't have to worry about your senators. They're people who understand we have got to address the problem," he said, conspicuously omitting Bradley.

But the White House has said the aim now is to sell Americans on the idea that there is an immediate problem, even though the system doesn't run out of money for decades, in hopes that they will put pressure on their representatives in Washington -- like Bradley -- to get behind the plan. Bush aides say the time for the legislative nitty-gritty of writing bills and negotiating with lawmakers will come after this intense public relations phase.

Bush wants to make certain that workers age 55 and over understand that their Social Security benefits will not change under his proposal for private accounts. Political advisers see that as crucial, especially to protect Republicans who fear that Democrats will use their tangling with the popular retirement benefit against them in the 2006 midterm elections.

The president portrayed his plan as both good for the Social Security system and as a crucial step in building ownership for more Americans. But he did not mention that investing in stocks and bonds means workers with private accounts risk seeing their assets shrink, nor did he talk about lower benefits or the enormous transition costs of the accounts, estimated in the trillions of dollars.

He did acknowledge that the private accounts "don't fix the system."