Obama’s newest tax plan.
Obama is looking to remove the social security tax cap. Currently individuals are only liable for social security tax up until their 97,501st dollar of W-2 wages are earned (for tax year 2007). Once an individual meets that dollar mark the employer is no longer required to withhold SS Tax. Obama’s plan will keep the rate (7.65%) the same but will lift the limit on the social security taxes. As this wont affect most workers new to the workforce, hopefully with a successful career and proper planning it is easy to surpass the income limit. My question is, would this be an attempt to put a band-aid on a system that does not work anymore? As much as I am against increased taxation, I am even more opposed to wasteful taxation, which I feel this would be. But that is only my opinion.
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Tags: Finance, Taxes, Work
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September 25th, 2007 at 8:54 pm
I agree that this may be a band aid. I’d like to see the whole speech, or somehow get a complete picture of his proposed solution for the social security problem. I’m 24 and my expectation is that I will see zero of what I put into social security. With that in mind, I too would be against any raise in this tax. However, if this was part of a comprehensive solution then I might be open to it. Can you post a link to the speech text or maybe a youtube video?