Graham: Bush visit didn't alter views

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Graham said he is "one of a handful of members who has openly talked about raising revenue to pay for the accounts.

"That makes me different from the normal Republican approach," including the president's.

But Graham said that unless Bush soon fleshes out his plan for voluntary personal accounts, the combination of competing plans within their party and Democrats united in opposition could scuttle any revamping of a program careening toward bankruptcy.

Some legislators speculated that with the state's four GOP U.S. House members behind him, along with Republican Sen. Jim DeMint, and two Democratic congressmen irrevocably opposed, Bush's visit specifically targeted Graham.

The senator's spokesman rejected the theory, saying Graham and Bush are "on the same sheet of music."

"I'm a big believer that there will be no Social Security reform bill unless it's bipartisan, and I'm a big believer that after months of looking at this that personal accounts are important, but they will not be part of the mix if they blow a hole in the deficit," Graham said.

"The only way you're going to get a bipartisan bill is to pay for the accounts, and that means new revenue."

If some Republican leaders are divided, so too is the public.

Upstate residents told The Greenville News while Bush was in Columbia that they fear the changes will harm the poor and senior citizens, while others saw them as fair to retirees and younger workers who will have the opportunity to boost their retirement income.

Graham, who has emerged as a major force in the debate despite his freshman status, said if any solution is seen as a partisan victory, Social Security will remain unchanged and headed for eventual bankruptcy.

"This issue is too big for one party to leave the playing field claiming victory," he said. "We have to suffer together and we have to win together and I think the president understands that."

The Seneca Republican and Bush agree that:

• The program's deteriorating finances, made worse by the impending retirement of the Baby Boom generation, must be shored up without raising the Social Security tax rate of 12.4 percent, shared equally by workers and employers.

• Whatever changes are made, limited voluntary personal investment accounts must be included.

They part company on financing.

Where Graham would raise the taxable salary cap to $160,000 from the current $90,000 and close corporate loopholes for financing, Bush's plan would use long-term borrowing.

"We have a financing plan to set them up without affecting the deficit," using new revenues, not borrowing, Graham said.

"The president's plan borrows the transition costs, about $1 trillion," Graham said. While Bush's approach "would pay for itself in 30 to 40 years, in the first 10 to 15 years there would be a huge increase in the federal budget deficit," he said.

Bush's plan would reduce benefits for those 55 and under, but retain scheduled payouts for retirees and those nearing retirement.

One difference between Graham and Bush involves personal account limits: Bush wants $1,000 annually, Graham $1,300.

But Graham is "willing to go down to $1,000."

Graham's plan and others are on the table, as Bush indicated Monday in his speech to the Legislature and a statewide television audience.

Graham said some Republicans — those with their own views on saving Social Security — don't see him as a team player.

"There is a group in the party that sees Social Security as a chance to win and establish large accounts to change Social Security from its current structure to a 401K plan. They're upset with the president as much as they're upset with me because once you say the accounts are going to be limited to $1,000, the whole Club for Growth model goes out the window."

He referred to the conservative organization that supports personal accounts for Social Security and has paid for television ads criticizing his approach as a tax hike that would slam small businesses.

The fragmented Republican majority is a threat to reform, he said.

Graham said Democrats are united in opposing personal accounts that change the nature of Social Security and exacerbate the deficit.

"You see Republicans with three or four different versions of bringing about solvency in three or four different ways to structure accounts and in politics, a simple, clear message has better resonance than a disjointed message," Graham said.

Graham's friend and freshman GOP colleague from Greenville, Sen. Jim DeMint, too, has his own plan, self-financed through personal accounts and neither raises taxes nor cuts benefits. Dan Hoover covers politics and can be reached at 298-4883.