White House warns U.S. could be like Europe if taxes rise

[stevedeshazer]

WASHINGTON, Jan 7 (Reuters) - A top White House economic adviser warned on Friday the U.S. economy could become "more like those of Europe" if taxes were raised to stabilize Social Security for the long haul.

"That is not the direction we should be heading," the chairman of the Council of Economic Advisers, Gregory Mankiw, told a conference in Philadelphia sponsored by the American Economic Association.

A text of his remarks was issued in Washington.

Mankiw said the Bush administration considered Social Security reform the single greatest fiscal challenge the country faces and said it had to be reformed in order to remain sound. The White House already has served notice that overhauling the retirement program is a priority and wants to set up private savings accounts as part of it.

link: http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=7269512
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more like Europe? The strategery is becoming more clearer....