Throughout the Democrat primary, each time Obama spoke about lifting the cap on income that's taxable for Soshsecurity, I would laugh about Barry's lack of understanding about how Soshsecurity works or how it was established.
Barry wants to make any income over $250k taxable to soshsecurity. The way the system is currently set up, that income would merely result in increased returns for the individual making the contributions, so there would be very little gain. That is, unless Obama's not talking about keeping the system as it is and is looking to means test it - essentially taking the money raised from the taxes on income over $250k and simply giving it to all of those making less than that amount.
Ridiculous as it sounds - If I made slightly more than $250k, I'd be asking my boss for a cut in pay; if I made significantly more, I'd be hiring the best tax attorney in the land - this is exactly what Barry's proposing. Lawrence Lindsey has an excellent Op-Ed in the Wall Street Journal... here's his final analysis, but read the whole thing:
Obama Turns FDR Upside Down
By LAWRENCE B. LINDSEY
June 20, 2008; Page A13
Sen. Barack Obama has a bad idea for "extending the life of Social Security." He has proposed applying the Social Security tax to incomes above $250,000, in addition to the current tax on incomes up to $102,000. It's unfair, he explained, for middle-class earners to pay Social Security tax on "every dime they make" while the very rich pay on "only a very small percentage of their income."
It is shocking to think that we have a presidential candidate who would make the private sector $5 poorer in order to make the government $1 richer. More likely, given the calculated political design of the proposal, no one in the Obama campaign told the candidate about the economic, ethical or historical consequences of his suggestion.
ARC: St Wendeler