Associated Press WorldStream via NewsEdge Corporation :

WASHINGTON_The Bush administration said in a new report Monday that Social Security, the U.S. public pension system, is facing a $13.6 trillion (€9.6 trillion) shortfall and that delaying needed reforms is not fair to younger workers.

A report issued by the Treasury Department said that some combination of benefit cuts and tax increases will need to be considered to permanently fix the funding shortfall. But White House officials stressed that President George W. Bush remains opposed to raising taxes.

The Social Security Board of Trustees projects that the trust fund will have insufficient funds to pay currently scheduled benefits beginning in 2041.

The Treasury report put the cost of the gap between what Social Security is expected to need to pay out in benefits and what it will raise in payroll taxes in coming years at $13.6 trillion (€9.6 trillion).

It said delaying necessary changes reduces the number of people available to share in the burden of those changes and is unfair to younger workers. "Not taking action is thus unfair to future generations. This is a significant cost of delay," the report said.

In another key finding, the report said: "Social Security can be made permanently solvent only by reducing the present value of scheduled benefits and/or increasing the present value of scheduled tax increases."

While the language of the Treasury report seemed to indicate that the administration would consider raising taxes along with reducing benefits as a way to deal with the funding shortfall, the White House was quick to reject that possibility.

"The president is not advocating for tax increases or benefit cuts," said White House spokesman Tony Fratto.

Treasury Secretary Henry Paulson, Bush's point person on Social Security reform, said he has had a number of discussions with members of Congress from both parties over the issue of fixing the problems in Social Security with the looming retirement of 78 million baby boomers _ Americans born between 1946 and 1964.

Bush had hoped to make Social Security reform the top domestic priority of his second term. Bush put forward a Social Security reform plan in 2005 that focused on creation of private accounts for younger workers but that proposal never came up for a vote in Congress, with Democrats heavily opposed and few Republicans embracing the idea.

While Democrats have fought to protect current benefit levels, Republicans have been adamant that taxes should not be raised to cover the Social Security shortfall.

Social Security provides retirement, survivors and disability income for about 50 million Americans.

___

On the Net:

Treasury Department: www.ustreas.gov

<<Associated Press WorldStream -- 09/25/07>>

PR Newswire via NewsEdge Corporation :

RIVERWOODS, Ill., July 25 /PRNewswire/ -- August sales tax holidays continue to grow in popularity this year, according to CCH, a Wolters Kluwer business and a leading provider of tax information, software and services (CCHGroup.com). At least fourteen states and the District of Columbia will waive their sales and use taxes for a limited time, usually on back-to-school items such as clothing, footwear, school supplies and computers. Local sales taxes may continue to be imposed in some places, however.

"Tax holidays are popular with retail merchants and, needless to say, families with back-to-school expenses," said CCH State Tax Analyst Dan Schibley, JD. "We're now seeing the concept expand beyond the traditional back-to-school timing and merchandise, and appearing at other times of the year, especially for energy-saving items."

Changes for 2007

Maryland, which had a holiday in 2006, is not having one this year because the General Assembly did not authorize it. However, Louisiana and Oklahoma are offering holidays for the first time in 2007. The Louisiana holiday goes beyond just back-to-school supplies and exempts the first $2,500 of the price of most items. With the clock ticking, a similar broad-based holiday looked likely to be approved in Massachusetts for the fourth year in a row.

In other changes this year, Florida's holiday is being held in August, rather than in July, and Texas has moved the start of its holiday from the first to the third Friday in August.

Holiday Phenomenon Expands

The tax holiday phenomenon continues to expand beyond the month of August and sales of back-to-school supplies. Shoppers in Tennessee will have two bites at the apple over the next year, as the state will repeat its August holiday for three days in late March 2008. Georgia decided to split off its holiday for energy-efficient products for personal use and hold that holiday in October, while keeping its school-supplies holiday in August. In the past, both had been held the same weekend in August.

Following Georgia's example, Virginia and Texas created brand new holiday periods for energy-efficient products. Virginia's will occur in October, and Texas will hold its over the Memorial Day weekend. Connecticut went them one better, enacting a sales tax holiday for energy-efficient appliances that runs for four months, from June 4 until September 30, 2007. In a further sign of holiday expansion, Louisiana and Florida held tax holidays for hurricane-preparedness supplies in the spring.

In what was perhaps the broadest tax holiday ever, South Carolina suspended the state tax, for the two days following Thanksgiving 2006, on almost every imaginable purchase, including purchases of electricity, cars and airplanes. This was a one-time event, however, that legislators added to a package of property tax relief funded with a sales tax increase. Holiday shoppers in the District of Columbia can still look forward, though, to a more modest sales tax break -- limited to clothing purchases -- that is held every November.

    August Sales Tax 2007 Holidays

    * Alabama: From August 3-5, 2007, the following are exempt: clothing
      costing $100 or less per article; a single purchase costing $750 or less
      of computers, software and school computer supplies; noncommercial
      purchases of school supplies and instructional materials up to a sales
      price of $50 per item; and noncommercial purchases of books up to $30
      each.

    * Connecticut: Clothing and footwear sold for less than $300 are exempt
      from sales and use tax from August 19-25, 2007. The holiday exemption
      replaces the regular exemption for clothing and footwear costing less
      than $50, which remains in effect for all other periods, and it does not
      apply to athletic or protective clothing and footwear, jewelry,
      handbags, luggage, umbrellas, wallets and watches.

    * District of Columbia: Sales of school supplies, clothing, accessory
      items and shoes for $100 or less are exempt from sales tax from August
      4-12, 2007.

    * Florida: Books, clothing, footwear and certain accessories with a sales
      price of $50 or less per item, and school supplies with a sales price of
      $10 or less per item, are exempt from Florida sales and use tax from
      August 4-13, 2007. The exemption does not apply to sales within a theme
      park, entertainment complex, public lodging establishment or airport.

    * Georgia: From August 2-5, 2007, Georgia sales and use tax does not apply
      to certain school supplies (up to $20 per item); clothing and footwear
      (priced at $100 or less per article); and computers and computer-
      related accessories (for a single purchase of $1,500 or less).

    * Iowa: The state's sales tax holiday on select clothing and footwear runs
      August 3-4, 2007. During the holiday, no sales tax, including school and
      local option sales taxes, will be collected on clothing or footwear that
      have a selling price of less than $100 per item. Certain accessories are
      excluded from the tax holiday.

    * Louisiana: In a newly enacted, broad-based holiday, the first $2,500 of
      the price of most items of tangible personal property purchased from
      August 3-4, 2007, will be exempt. The holiday covers purchases by
      consumers for nonbusiness use, but does not apply to transactions
      involving vehicles, meals, taxable services, or leases or rentals of
      tangible personal property.

    * Massachusetts: As August approaches, the Legislature appeared poised to
      approve a tax holiday for August 11-12, 2007, that would exempt
      purchases of items costing up to $2,500. However, if it follows past Bay
      State practice, when the sales price of any single item is greater than
      $2,500, tax would be due on the entire price charged for that item. The
      Governor and legislative leaders have expressed their support for a 2007
      holiday.

    * Missouri: From August 3-5, 2007, retail sales of the following are
      exempt from state sales tax: clothing and footwear (excluding certain
      accessories) costing $100 or less; school supplies costing $50 or less;
      computer software with a taxable value of $350 or less; and personal
      computers and computer peripheral devices sold for $3,500 or less. The
      tax holiday may not apply to a retailer if less than 2 percent of the
      retailer's merchandise qualifies for the holiday; however, the retailer
      must offer a tax refund if the customer requests one.

    * New Mexico: Customers may buy the following items free of tax from
      August 3-5, 2007: clothing or shoes sold for less than $100 (excluding
      items primarily for athletic or protective use); computers (but not
      handheld computers) sold for no more than $1,000, and any associated
      monitor, speakers, printer or related items sold for no more than $500;
      notebooks, paper, writing instruments, crayons, art supplies, paper
      clips, staples, staplers, scissors and rulers priced under $15; and
      bookbags, backpacks, handheld calculators, maps and globes priced under
      $100. However, retailers are not required to participate.

    * North Carolina: The sales and use tax holiday runs from August 3-5,
      2007. Exempt items are clothing and school supplies with a sales price
      of $100 or less; sports and recreation equipment with a sales price of
      $50 or less; computers with a sales price of $3,500 or less; and
      computer supplies costing $250 or less. Clothing accessories, protective
      equipment, furniture and rentals are not exempt during the holiday.

    * Oklahoma: Sales of clothing and footwear costing less than $100 are
      exempt from August 3-5, 2007.

    * South Carolina: During the period August 3-5, 2007, clothing, clothing
      accessories, footwear, school supplies, computers, printers, printer
      supplies, computer software and linens for the bed and bath are exempt
      from state and local sales tax. Certain items, including, but not
      limited to, jewelry, cosmetics, furniture and items for use in a
      business are not exempt during the holiday.

    * Tennessee: Clothing and school supplies, including art supplies, costing
      $100 or less and computers, other than those for use in a trade or
      business, costing $1,500 or less are exempt from August 3-5, 2007.

    * Texas: From August 17-19, 2007, sales of most clothing, footwear and
      school backpacks priced at less than $100 are exempt from state and
      local sales taxes. Clothing and footwear used primarily for athletic
      activities or for protective wear are ineligible for the exemption.
      Accessories and rentals of clothing also are excluded from the holiday.

    * Virginia: Sales of clothing and footwear costing $100 or less and school
      supplies costing $20 or less are exempt from August 3-5, 2007.

About CCH, a Wolters Kluwer business

CCH, a Wolters Kluwer business (CCHGroup.com) is a leading provider of tax, audit and accounting information, software and services. It has served tax, accounting and business professionals and their clients since 1913. Among its market-leading products are The ProSystem fx(R) Office, CCH(R) Tax Research NetWork(TM), Accounting Research Manager(R) and the U.S. Master Tax Guide(R). CCH is based in Riverwoods, Ill.

Wolters Kluwer is a leading global information services and publishing company. The company provides products and services for professionals in the health, tax, accounting, corporate, financial services, legal and regulatory sectors. Wolters Kluwer has 2006 annual revenues of euro 3.7 billion, employs approximately 19,900 people worldwide and maintains operations across Europe, North America, and Asia Pacific. Wolters Kluwer is headquartered in Amsterdam, the Netherlands. Its shares are quoted on the Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices. For more information, visit http://www.wolterskluwer.com.

SOURCE CCH, a Wolters Kluwer business