WASHINGTON -- Democrat Barack Obama said Sunday that if elected he will push to increase the amount of income that is taxed to provide monthly Social Security benefits.
Obama and other Democratic presidential candidates previously have signaled support for this idea.
But during an interview on NBC's "Meet the Press," Obama said subjecting more of a person's income to the payroll tax is the option he would push for if elected president.
He objected to benefit cuts or a higher retirement age.
"I think the best way to approach this is to adjust the cap on the payroll tax so that people like myself are paying a little bit more and people who are in need are protected," the Illinois senator said.
"That is the option that I will be pushing forward."
Currently, only the first $97,500 of a person's annual income is taxed. The amount is scheduled to rise to $102,000 next year.
Obama's proposal could include a gap or "doughnut hole" to shield middle-income earners from paying more in t
2007-11-12 11:34:49 · 7 answers · asked by RaphaelDeLaGhetto 2 in Politics & Government ➔ Elections
At the present time, Social Security runs a surplus. It takes in more in social security taxes than it pays out. However, because of declines in the birth rate and longer life expectancy, in about ten years it will begin to pay out more than it receives in taxes. Based on current projections, somewhere between 2040 and 2050, the money that has been saved over the past 20 years from the surplus will be exhausted. When the "trust fund" runs out, there will be two options available -- either a cut in benefits or using general revenue to cover social security payments.
Because funding Social Security at its current level would be a drain on general revenue, the federal government has been discussing ways to solve the problem. There are three basic options for solving the problem -- raise social security taxes, lower benefits, or delay the retirement age.
In this part of the article, Senator Obama is emphasizing one way to accomplish the first -- raising social security taxes. Under current law, individuals and their employess pay social security taxes only on the first $97,500 of a person's income (the cut-off is indexed each year for inflation). That means, for example, that athletes, corporate executives, actors, and other highly paid individuals are not taxed for social security on a large portion of their incomes. One way to raise social security taxes that would be painless for most workers would be to eliminate this cap since it only benefits about 2% of the population.
The debate, of course, is whether this change adds enough revenue to make a difference.
2007-11-12 11:51:11 · answer #1 · answered by Tmess2 7 · 0⤊ 1⤋
Right now, people's income is taxed a certain percentage as "payroll tax" and that goes into Social Security, but only the first $97,500 is taxed, meaning that someone who makes $300,000 pays no more in payroll tax than someone who makes $97,500, which is dumb. Obama wants to change that.
2007-11-12 11:40:11 · answer #2 · answered by James 7 · 0⤊ 0⤋
The Social Security tax is seen as very regressive. It disproportionately affects lower income people than the wealthy. Because only the first $97,500 in wages is subject to the tax, the MARGINAL tax rate for the middle class is higher than for the wealthy. Obama is suggesting a fix.
2007-11-12 11:40:08 · answer #3 · answered by Anonymous · 0⤊ 1⤋
you will want to envision of non secular war in Ephesians 6:10-18. "Loins gird approximately with reality" is element of the religious armor that God's notice provides. it rather is not on the subject of the final days only beforehand of the Rapture, it rather is approximately our on an widespread basis living right this moment. we are to be alert and conscious constantly. become attentive to the enemy(s) of the go of Christ.
2016-09-29 02:59:35 · answer #4 · answered by ? 4 · 0⤊ 0⤋
It's called the first steps toward Communism. Everyone, no matter what, has the same. So even if you work harder, you're going to pay any extra you have in taxes.
2007-11-12 12:03:19 · answer #5 · answered by Anonymous · 0⤊ 2⤋
you will pay 36% taxes wich includes state and local...what politicans say wont mean anything until a flatrate tax is done
2007-11-12 11:45:21 · answer #6 · answered by Anonymous · 0⤊ 2⤋
srry. didnt we turn that in already?? LOL anyway i wanted some more points thnx!
2007-11-16 07:46:00 · answer #7 · answered by Anonymous · 0⤊ 0⤋