Obama Proposes Payroll Tax Overhaul

Democrat Says He Would Apply Social Security Payroll Tax To Incomes Above $250,000

(CBS/ AP)  Democrat Barack Obama said Friday he would apply the Social Security payroll tax to annual incomes above $250,000, which would affect the wealthiest 3 percent of Americans.

The presidential candidate told senior citizens in Ohio that it is unfair for middle-class earners to pay the Social Security tax "on every dime they make," while millionaires and billionaires pay it on only "a very small percentage of their income."

The 6.2 percent payroll tax is now applied to all wages up to $102,000 a year, which covers the entire amount for most Americans. Under Obama's plan, the tax would not apply to wages between that amount and $250,000. But all annual salaries above the quarter-million-dollar amount would be taxed under his plan, Obama said.

Obama was vague about what forms of income would be affected, saying, "We should exempt anyone making under $250,000 from this increase so that the change doesn't burden middle-class Americans." Campaign aides said the additional tax, like the current one, would apply only to wages and salaries and not to other forms of income such as investments.

Obama has talked before of establishing such a "doughnut hole" in the amount of income subject to the Social Security tax. Friday marked the first time he confirmed a resumption point: $250,000 and above.

Obama made the remarks at a retirement facility in Columbus, capital of a state he lost badly to Sen. Hillary Rodham Clinton in the Democratic primary on March 4. Republican John McCain is hoping to carry Ohio this fall, as President Bush did four years ago in his narrow win over Democrat John Kerry.

Obama promised to make retirement security a priority in his first term as president but said that bipartisan negotiations will be a necessary part of the process, reports CBS News' Maria Gavrilovic. He said that both Republicans and Democrats will have to “jump at the same time” so that the issue does not become politicized.

He said his plan "allows us to extend the life of Social Security" without raising the retirement age or cutting benefits. Obama said McCain "a few years ago" stated that he might consider a higher cap on incomes subject to the tax, "but today he's attacking me for holding the very same position."

Obama also criticized McCain for being open to letting taxpayers invest part of their Social Security payments in private investment accounts.

"Imagine if your security now was tied up with the Dow Jones," he said, alluding to the recent slide in stock prices. "You wouldn't feel very confident about the security of your nest egg."

McCain, campaigning Friday in New Jersey, said Obama was misrepresenting his position.

"I will not privatize Social Security," he said. "But I would like for younger workers, younger workers only, to have an opportunity to take a few of their tax dollars, a few of theirs, and maybe put it into an account with their name on it. That's their money."

Current retirees would not lose any benefits, McCain said.

The total Social Security tax rate of 12.4 percent is evenly divided between workers and their employers.

Obama, speaking on other retirement issues, said he would "limit circumstances when retirement benefits can be cut," and increase the wages and benefits workers could protect in bankruptcy court. Companies would have to disclose more about their pension fund investments, he said. He vowed to end "the outrage of executives getting bonuses while workers watch pensions disappear."

[beastof70]

I swear, just read Rowdy''s link if you want to see all the little chirping minions with their mouth wide open awaiting the arrival of ObamaMomma with his Robin Hood tax plan.

When will folks wake up and realize you can''t hurt the rich man? Every time you hyphenated-Americans let these hammer and sickle wearing Democrats try, they wind up shooting your foot off.

The Democrats tax and spend pandering techniques over the past fifty years has just about sent every rich man and his bag full of high paying manufacturing job fleeing America. Bye bye, so sad!

Personally, I''d have to willingly admit to being a thief before I could ever cast a vote for any Democrat.

[lorinkundert]

I wonder if Obama is familiar with the Constitution and the Supreme Court rulings starting with Brushaber? If he was he would be repealing the current tax code.

[rowdywicca]

http://www.newsbusters.org/blogs/tom-blumer/2008/06/16/media-misses-historic-de-linkage-obama-social-security-proposal

Folks you really need to read this gobbly-*** proposal Obama''s put together. It''s just a bunch of krap that sounds good, but is in fact useless.

[beastof70]

Well, it''s been a gas, but I got to go...I have real farming to do. Nothing resembling the joke Congress was working on.

[beastof70]

And I''''ll argue that the latest "farm bill" is an example of a broken government where both Democrats and Republicans exhibit poor judgement in spending.

Electing Republicans, who claim to be conservative, to congress and having them back that "farm bill" sure leaves conservative votors wondering if there is any hope at all of stopping the spending. The next logical step is those same Republicans bowing to the song of "need to raise revenue" to cover those "farm bill" type choices they just voted on.
Posted by payasyougo at 09:55 AM :
=======================

The only argument I can offer to your above is the fact you even got close to calling it a "farm bill". :)

There is no way any conservative American could have justified voting for this bill.

I can only hope the American Conservative Union will put a great big black mark on all who did.

[beastof70]

Finally we have a candidate in Barack who''''s actually do something to solve the looming Social Security [SS] crisis.

So for those of you slinging baseless insults at Obama, why don''''t you instead just describe your enlightened plans for resolving the SS shortfall?

Let me guess, you''''d do nothing, or you''''d cut already meager benefits, or best yet, you''''d advocate Bush and McCain''''s plan of privatizing SS and putting the onus of investment on the shoulders 90 year women?

Hmmmm? What are your solutions?
Posted by GreatDriveW
----------------------------------------

LOL!!! You hammer and sickle wearing hyphenated-Americans have all been taught so well how to sneek up on the subject of making SS something more closely resembling a 401K plan.

You squirt and smoke all kind of propaganda around it, but never get close to offering any kind of substantive opposition. Take the "90 year old women" squirt above as an example of what these little minions have been breech loaded with.

Converting SS into a 401K type retirement plan would be so simple.....Except, it would force the federal government to begin to straighten up and fly right. Become more business friendly, rather than the communists they so want to be. It would also remove so much power from these same pinkos they simply had rather see it collapse. BTW: This 12.4% tax increase on "PAYROLL TAXES" over $250K will hardly be enough to save squat!!

[payasyougo]

And I''ll argue that the latest "farm bill" is an example of a broken government where both Democrats and Republicans exhibit poor judgement in spending.

Electing Republicans, who claim to be conservative, to congress and having them back that "farm bill" sure leaves conservative votors wondering if there is any hope at all of stopping the spending. The next logical step is those same Republicans bowing to the song of "need to raise revenue" to cover those "farm bill" type choices they just voted on.

[beastof70]

Not a one of you hammer and sickle wearing hyphenated-Americans seems willing to step up and explain how your tax and spend Democrat boy is offering any "Change" for America....

Other than to roll back all of G.W.''s tax cuts (which drove federal revenues through the ceiling) and increases taxes substantially on the poor man with payroll taxes and "Wind Fall Profits" taxes which all Americans from dollar one!!! Not to mention his plans to increase all kinds of federal "users" fees that have so much more impact on the poor man than it does a rich man.

Cowboy up....Stop trying to offer these Bill Clintonesque bridges (links) to nowhere.

Your boy is selling nothing more than air, and thus far y''all are sucking it up like it''s good?????

[payasyougo]

it is unfair for middle-class earners to pay the Social Security tax "on every dime they make," while millionaires and billionaires pay it on only "a very small percentage of their income."
-----------------------
This is the standard argument of a crevenue hungry government appealing to the greedy and envious. If you don''t make the sacrifices to earn what others do, take it away from them. Shame on you.

If you make less than 100k, raising the cap on upper income workers will do nothing to improve your situation. It will put more money in the wasteful hands of government. Are you paying attention to what the government does with tax revenue or does your envy and hatred of people that make more money than you force your eyes closed to justify your lifestyle?

[beastof70]

Here is a link to a CNN article that has a chart comparing the two candidates tax proposals. Get the facts, then make your choice.
Posted by stratmaster2 at 12:47 PM :
=====================================

Followed the link you offered Stainmaster, only to find exactly what I figured.....Once again you offer a butt load of half truth propaganda.

This link went to OsamaObama''s "Income Tax" increase. This thread is addressing "Payroll Taxes"....Do you even know the difference??

All the while you duck every time I bring up OsamaObama, the hammer and sickle wearing pinkos proposed "Wind Fall Profits" taxes designed to hit the poor man right in the shorts!!!

[beastof70]

Don''''t let the neocon''''s scare you with tax rhetoric. The facts are that Obama is proposing tax cuts for everyone making 227k or less, and taxes stay the same for those making 227k up to 603k. In fact, Obama is proposing larger tax cuts for those making less than 112k than McCain is.
Posted by stratmaster2 at 12:44 PM : Jun 15, 2008
===============================

Sorry Stainmaster, but what you offer is flat out half truth propaganda. When you look at OsamaObama''s TOTAL tax package (of which I am confident this hammer and sickle wearing commie hasn''t finished revealing) the poor man is clearly gonna take it in the shorts.

His "Wind Fall Profits" tax for example, just like these payroll tax hits the poor man from dollar one....A dollar he can far less afford to spend than the rich man can.

In your best propaganda, you tax a single piece, pull it out of context and launch your stinky smoke.

I must ask of you two jokers claiming folks earning less than $250K shouldn''t even pay taxes.....Are you willing to turn loose of some of that public nipple you obviously have grown happy suckling on??

It''s these types of attitudes, in combination with the Democrat Party pandering to it that has caused so many jobs to leave America.

[Stratmaster7]

Here is a link to a CNN article that has a chart comparing the two candidates tax proposals. Get the facts, then make your choice.

http://money.cnn.com/2008/06/11/news/economy/candidates_taxproposals_tpc/index.htm

[Stratmaster7]

Don''t let the neocon''s scare you with tax rhetoric. The facts are that Obama is proposing tax cuts for everyone making 227k or less, and taxes stay the same for those making 227k up to 603k. In fact, Obama is proposing larger tax cuts for those making less than 112k than McCain is.

[zerato-2009]

Wow obama wants equalize hte tax system to get the rich to pay for social security. I guess the rich will have to complain about having to pay for taxes the others of us have been paying for years. I hope they don''t have to sell their hummer or viper to do so, I hate for them to suffer

[beastof70]

Reckon how many other "NEW TAXES" OsamaObama has up his sleeve?

Oh that''s right, he plans on doing away with all of G.W. Bush''s tax cuts that actually lowered taxes on folks earning as low as $32,000.

It now appears, if you''re an American earning less than $102,000 a year, you might as well drop your pants and assume the position. There might be an exception if you happen to be a member of a black seperatist church or other such organizations.

[beastof70]

So, OsamaObama plans on giving the folks who earn between $102,000 and $250,000 a tax break, by placing a tremendous new tax increase on folks who earn $102,000 or less.

No you say?? Well, let us look at this tax increase which fails to roll back payroll taxes on folks earning less than $102,000. Then add it to his "Wind Fall Profits" tax and see if the poor man isn''t hurt an order of magnitude more than any rich man. How elitist of this Columbia and Harvard educated hyphenated-American.

[jedi080808]

http://www.exposeobama.com/obamaislam.ht
ml


Watch this right now !!

--------------------------------------------------------------------------------

Posted by nanging3

Why don''t you come up with a idea of your own instead of the stupid post you send

[nanging3]

http://www.exposeobama.com/obamaislam.html


Watch this right now !!

[demwatcher]

More new taxes, and you are a fool if you think that he won''t get around to raising yours too if he is elected.

[greatdrivew]

Finally we have a candidate in Barack who''s actually do something to solve the looming Social Security [SS] crisis.

So for those of you slinging baseless insults at Obama, why don''t you instead just describe your enlightened plans for resolving the SS shortfall?

Let me guess, you''d do nothing, or you''d cut already meager benefits, or best yet, you''d advocate Bush and McCain''s plan of privatizing SS and putting the onus of investment on the shoulders 90 year women?

Hmmmm? What are your solutions?