Senator Obama's Social Security Tax Plan

In addition to several other tax increases, Senator Barack Obama wants to increase the Social Security payroll tax burden by imposing the tax on income above $250,000. This would be a sharp departure from current law, which only requires that the tax be imposed on the amount of income needed to "pay for" promised benefits. But more important, at least from an economic perspective, the Senator's initiative would increase the top tax rate on productive behavior by as much as 12 percentage points - and this would be in addition to his proposal to kill the 2003 tax rate reductions and further boost the top rate by 4.6 percentage points. This mini-documentary explains why a big tax rate increase on highly productive people would be very damaging to America's prosperity, especially in a competitive global economy. Simply stated, pushing top tax rates in the United States to French and German levels means at least some degree of French-style and German-style economic stagnation. Visit www.freedomandprosperity.org for more information.

Category:

News & Politics

Tags:

• social
• security
• ss
• taxes
• obama
• freedom
• and
• prosperity
• cfp
• cf&p
• mitchell
• quinlan

[kiroc666]

I love the CATO institute but this guys choice in ties is absolutely horrible.

[TheGeneralThings]

The French and German have lower levels of disposable income because their taxes cover most if not all expenses that Americans pay for out of their own pocket (i.e., health care, post-secondary education, guaranteed employment benefits, subsidized maternity care, etc.)...and Europeans are getting BETTER results than their American counterparts because the interests don't lie in the hands of profiteers: these government-run and -subsidized services are accountable TO THE PEOPLE, NOT SHAREHOLDERS

[MrBoy219]

The wealthy do not pay Social Security taxes on any earnings above $106,000. Lets change this .. The rich can afford more.. This is just another perk for the wealthy..

[adamkajones]

@poindexterwitkowsky Rich people put in more than they take out and poor poeple take out more than they put in. Doesn't seem fair to me considering rich people already contribute more to economic growth.

[bmuralter]

in germany we dont have economic stagnation our economy grows more than the us thats a fact! that higher taxes kill the bu ssines is a lie. one for all and all for one isnt sozialism or communism. why does a rich country like usa have so many realy poor citizens? their must be something wrong!

[Solandrios]

@poindexterwitkowsky Yes, there is a social security trust fund. No, it's not an entitlement. Yes, TECHNICALLY, there is a surplus. Now, for reality. In addition to this 2.6 trillion dollar surplus the US Gov't. has 'borrowed' at least 2.5 trillion dollars of this surplus to fund other gov't. programs. So the trust fund itself is about bankrupt, although this is more because of gov't. impropriety in spending rather than any telling flaw in the system.

[mrhoffame]

@poindexterwitkowsky Where is this surplus? I was not aware of a specific account that held funds for SS.

[uconnfb74]

@poindexterwitkowsky Your an idiot, thats not true at all. But good try.  Do you know anything about economics finance or politics? Or do you listen to maddow's crazy talk?

[poindexterwitkowsky]

~~Stand up 4 your RIGHTS Americans. + The REPUBLICANS have been FOOLING YOU for the last 30 yrs. SOCIAL SECURITY*, (SS) , is NOT entitlement! SS HAS A $2.6 TRILLION SURPLUS. SS CAN pay every claim at least until 2030. SS DOES NOT increase the federal budget by one cent! Tell the REPUBLICAN GANGSTERS & THEIR WALLSTREET BANDIT FRIENDS that you will FIGHT any PRIVATIZATION*OF your SS pension. You will FIGHT ANY REDUCTION IN BENEFITS. YOU will FIGHT any change in AGE REQUIREMENT FOR SS BENEFITS!