WASHINGTON – In new political maneuvering over Social Security, a Democratic lawmaker on Monday will introduce a plan for shoring up the finances of the retirement system, putting him at odds with leaders of his party.
Rep. Robert Wexler of Florida says that by imposing a 6 percent tax on wages above $90,000, to be paid half by workers and half by employers, the government could raise enough money to solve Social Security’s financial problems for 75 years.
Workers and employers pay a combined 12.4 percent Social Security tax on wages up to $90,000 a year, but none on amounts above that.
In proposing the idea, Wexler has drawn praise from the White House but criticism from some in his own party.
President Bush has made restructuring Social Security the top domestic priority of his second term, and he has urged lawmakers to engage in the debate. But Democratic leaders have said they do not want to lay ideas on the table until Bush abandons the centerpiece of his own plan – allowing younger workers to divert some Social Security taxes into individually controlled stock and bond accounts. Democrats say the accounts would drain money from the system, causing it further harm.
In an interview, Wexler said he was acting out of duty to his Florida district, which he said includes the second-highest number of seniors of any House district. It includes parts of Palm Beach and Broward counties.
“My allegiance to seniors is greater than my allegiance to the Democratic leadership,” he said.
“The president has challenged Democrats to come up with plans of their own for dealing with Social Security’s solvency,” Wexler said. “I think it’s time we met that challenge without cutting benefits or raising the retirement age.”
Bush’s plans for Social Security have fared poorly in public opinion polls, and many Democrats have urged party members to avoid taking any steps that would distract voters from the principal Democratic claim that the president is aiming to “privatize” the retirement program.
In particular, Democrats have been wary of endorsing a tax increase, as Wexler’s plan does, saying that such pain-inducing proposals should come from Bush and the Republicans.
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