The price of reform
The week's news at a glance.
Washington, D.C.
President Bush shocked conservatives last week by saying that he would consider raising Social Security taxes on the wealthy to save the system. Bush has warned that Social Security will start losing money around 2018, as baby boomers retire and start collecting benefits. He has proposed letting young workers divert contributions into individual accounts, but critics have said the plan would cost billions. Bush said that taxing wages above $90,000 a year, which are now exempt, would be “on the table” as Congress debated a fix. House Speaker Dennis Hastert, though, predicted that Republicans would block any tax increase.
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