Posted on 09/22/2007 2:50:53 PM PDT by Sub-Driver
Obama Floats Social Security Tax Hike Democratic Presidential Candidate Suggests Taxing Those Who Make More Than $97,000 Per Year By TEDDY DAVIS
Sept. 22, 2007 —
Sen. Barack Obama, D-Ill., is considering a major tax hike on the rich to shore up the nation's Social Security system.
"If we kept the payroll tax rate exactly the same but applied it to all earnings and not just the first $97,000," Obama wrote this week in an Iowa newspaper, "we could eliminate the entire Social Security shortfall."
Obama's idea, which he described on the op-ed page of Friday's Quad City Times as being "one possible option" and not a formal plan, would raise more than $1 trillion over 10 years by subjecting income of more than $97,000 to a 12.4 percent tax. Half of the tax would be paid by employees and half would be paid by employers.
Obama is floating the idea of a tax hike on the rich as a way of assuring lower- and middle-income voters that he sees an option for ensuring Social Security's solvency that would not burden them. Obama has been indirectly criticized by Sen. Hillary Clinton, D-N.Y., for suggesting on ABC News' "This Week with George Stephanopoulos" that a higher retirement age should be "on the table."
By suggesting the elimination of the Social Security tax cap, Obama has distinguished himself as the presidential candidate most willing to touch the "third rail" of American politics. No other major candidate has come close to offering a specific idea with the potential of generating as much revenue.
Obama's idea, however, also carries considerable political risk.
Eliminating the Social Security tax cap without changing the benefit formula could undermine support for the program among the roughly five percent of Americans who earn more than $97,000 per year.
(Excerpt) Read more at abcnews.go.com ...
In 7 years it went up 20 grand. Dang!!!!! Soon they will just lift the cap completely.
I know the article says it would do a huge amount of harm to families, but I just don’t think politicians care about that anymore...if ever.
Didn’t the Democrats just finish saying that any household that earned less than $80K had to be included in the new health care plan because otherwise they couldn’t afford the premiums?
LOL
Obama wants to take the SS Check from yo, Mama!!
good lord...that would be big money to me as a self employed person
The problem is most are manipulated, and won’t bother to take the time to educate themselves, and to find real (free-market) solutions!
Wasn’t there something written before 1812 that said it’s illegal to tax income?
With the large staffs they have, they only get the US Today version at best. It used to be the Reader’s Digest version, but I believe they have lowered the standards to the quick sound bytes that U.S. Today Newspaper provides.
Funny you should say that. Unfortunately it is true. The politicians treat you like pond scum or maybe even less. That is so tragic for this country. I hope this does not pass ever so you can keep as much of your hard earned cash as you can.
That taxing of SS is a real kick in the butt. I can’t believe that it isn’t vigorously attacked. (and no I don’t receive SS)
Good grief. We own a small business and pay both sides of the tax for ourselves and half the tax for our employees. But I guess we are “rich” because we own a business.
Sooner or later these morons are going to tax the small businesses out of business. I guess they don’t care. Welfare for those formerly employed by small businesses is a much better solution./s
I read somewhere that the average full-time RN salary is $60,000. So, if a nurse is really ambitious and works 20 hours extra a week at time and a half, she would be classified as “rich”. What a load of garbage.
I say to Obama, go get the rich elite who rigged this system. Maybe then we will get some serious discussion about eliminating SS.
Read the article I linked to you about the effect of lifting the cap entirely. It would destroy the economy and do very little to save SS.
The breadth of this tax increase is stunning. It will decrease savings and increase the cost of employing US workers leading to even more lost jobs. Lower economic growth will lead to less tax revenue.
Here is a plea to the dims: Please give the rest of us the same deal as the state and local government employees. We will not demand gold-plated pensions. We just want the ability to save for our retirement and opt out of the Ponzi scheme known as social security. We also want our employers to be excused from their share of the Medicare tax if our employers agree to put the money in a fund for early retirement health care. I thought these state and local government workers were serving us. It seems that they are shafting us instead.
That’s why it would hurt the economy. Currently, there is no cap on earnings subject to the HI payments. About 40% of all Federal revenue comes from SS and Medicare receipts. About 80% of Americans pay more in SS/HI than they do in income taxes.
>>>Believe me bud. We are all hoping this does not happen no matter who wins the White House. After seeing some Republican behavior lately (Hatch giving a billion to gang control), I would not bet against Republican not increasing Social Security either.<<<
Moral of the story: don’t trust anyone who didn’t sign the pledge not to raise taxes.
And since when does $97,000 amount to make one rich? Financially sound? Yes. Rich? Ha!
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