Obama proposes increasing SS tax on wealthy

[phen43]

Senator Barack Obama yesterday proposed raising Social Security taxes on the wealthier, saying the nation's "most regressive tax" needed to be revamped to increase revenues to the retirement fund and spread the burden of paying for the program more evenly.

Obama reiterated that he would not raise the retirement age or cut benefits for what he called "the most successful social insurance program we have." But he said he would consider raising the cap on the Social Security tax - currently imposed on earnings up to $97,500 - or creating a so-called doughnut hole that would reinstate the tax once income hits a certain level, as Democratic presidential hopeful John Edwards has proposed.

Obama also took a shot at his rival for the Democratic presidential nomination, Hillary Clinton, suggesting that the New York senator had failed to address how she would fix Social Security, which specialists believe will begin running a deficit in 2017. Clinton has said she will not privatize Social Security, but in Democratic debates has declined to say whether she would raise the cap on the amount of income subject to the Social Security tax.

http://www.boston.com/news/nation/articles/2007/10/28/obama_proposes_increasing_social_security_tax_on_wealthy/

[bluestateguy]

1. That would shore up Social Security for eternity

Why should Bill gates pay a smaller percentage of his income to SS than everybody else?

[phen43]

2. I agree!!

[jefferson_dem]

3. This sounds totally reasonable to me, especially if you include the "doughnut hole" provision.

Why they (even Krugman) were slamming it today on ABC's This Week is a mystery. As if we can do nothing and expect SS to be solvent forever..

[cuke]

8. The donut hole is good for the rich

but in political terms, it's probably the only way to lift the cap and avoid the charge of "middle class tax increases"

By the time they're done smacking each other over this, they'll all have a plan similar to Edwards

[Ethelk2044]

4. Good strategy

[phen43]

7. hi ethelk2044!!!!

Barack does have some outstanding ideas!!!:hi:

[cuke]

5. So BO shifts on how to "fix" SS (which doesn't need fixing)

because, until now, he hasn't said how he would fix SS, and then criticizes HRC for doing what he did up until now

[hedgehog]

10. I don't know where you got that from, I remember this proposal from the last

debate. HRC wouldn't answer on how to fix SS, insisting that we needed to restore fiscal responsibility first.

[cuke]

13. Obama's position to now has been "All options are on the table"

It was not "raise the cap". I don't know what it says now, but as of late last nite it did not say that Obama would raise the cap. It only had vague language about securing SS.

[hedgehog]

15. Raising the cap is not an option? He was talking about raising the cap before the

debate if memory serves me correctly.

[cuke]

19. Againm Obama's position has been "All options are on the table"

which means he might do anything. Up until now, he has NOT said "The way to fix SS is to raise the cap". What he said was "One of the ways to fix SS is to raise the cap" but made no commitment to doing so.

[cuke]

21. From Obama's website

http://www.barackobama.com/issues/seniors /

"Protect and Strengthen Social Security. Social Security is indispensable to our workers and our seniors. It is a great reflection of our values as a country. Barack Obama will make sure Social Security is solvent and viable for the American people, now and in the future. Two-thirds of beneficiaries depend on Social Security for more than half of their monthly income. Barack Obama fought against President Bush's efforts to privatize Social Security. As president, Obama will preserve Social Security by stopping any efforts to privatize it. Obama will work in a bipartisan way to maintain Social Security's solvency for future generations."

Where does it say he would raise the cap?

[Name removed]

11. Deleted sub-thread

Sub-thread removed by moderator. Click here to review the message board rules.

[phen43]

12. good point

but what will HRC have to say about this, will she agree, disagree, come up with something new?

[hedgehog]

17. Yes.

[cuke]

20. heh

gotta admit, that was funny

[phen43]

23. yep

gotta go cuke see you tomorrow!!!:)

[cuke]

18. My guess

is that by the time they're done bashing each other over this, they will have positions similar to Edwards (eliminating the cap and adding a "donut hole")

[phen43]

24. i love donuts!!

Bye:hi:

[pinto]

6. Raising that cap is a straightforward and fair approach to long, long term solvency.

:thumbsup:

[hedgehog]

9. Donut hole, schmonute hole!

My husband has hit the limit once or twice thanks to overtime. It was nice to get a check or two in December without the deduction. BUT, who needs the money more, someone making $97,500 or someone making $9750? All in all though, I think Obama's got the right idea.

[tbyg52]

14. Absolutely. Should have been done years ago.

Glad someone is finally saying it.

[mopinko]

16. guess what- they raise the cap every f'ing year.

and none of the "it's simple- just raise the cap" people ever seem to notice that this just increases the liability for the future. or are you going to raise the premium without raising the payout? after all, the people you are taxing are already "rich".

[MH1]

25. That's adjustment for inflation.

The point is to raise the cap significantly further than just the amount to account for inflation, so that enough additional revenue is brought in to balance the books.

A more progressive solution raises the cap more and implements a floor, so that minimum wage folks wouldn't have to pay at all. But if that were proposed you would hear screams of "SOCIALISM!!!" from the right-wing nutters.

[MH1]

22. Raising the cap - good. Doughnut hole - ugh.

If too much is taken from some poor laborer who makes 100K or so, then add a floor (exemption for initial earnings up to x amount), then raise the cap a little further. The 100K laborer and everyone who makes less than that will pay a little less, but SS still will raise enough revenue..at some income level people will pay more than they were before the change, but that's the point. And the only way to preserve social security without raising the retirement age or reducing benefits.

[JerseygirlCT]

26. I think that makes plenty of sense. nt

[Colobo]

27. Common sense!

[DURHAM D]

28. This whole conversation is a distraction.

Basically, it is not social security that needs fixing. It is medicare that is under funded.