Social Security Fix Requires Benefit Cuts And Tax Increases

WASHINGTON (AP) - Combining benefit cuts and tax increases is the only way the Bush administration says Social Security can be permanently fixed.

That's one of the key findings in a new paper on Social Security released by the Treasury Department in an effort to achieve common
ground on the politically explosive issue.

The Treasury paper says that while other changes to the giant benefit program might be desirable, "only these changes can restore solvency permanently."

Treasury Secretary Henry Paulson says he has had a number of discussions with members of Congress from both parties. So far those talks have produced no breakthrough on the issue that President Bush wanted to make the top domestic priority of his second term.

(Copyright 2007 by The Associated Press. All Rights Reserved.)

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