Perhaps, I’m missing something. I’m reading this week’s Time magazine and they’ve included a voter’s guide to Obama and McCain’s plans for the economy. Under Obama’s plan, he would end Bush’s tax cuts for families making more than $250,000 (with which I agree), raise the capital gains tax and give tax credits to singles and families. McCain wants to make Bush’s tax cuts permanent (which I oppose), reduce the corporate tax (as I mentioned last week) and here’s a new one — “He may be open to the possibility of a higher Social Security payroll tax.” What does that mean?
8% of my salary goes to Social Security. Is he going to raise that? And, with that raise, is he going to guarntee that Social Security will be there when I retire? Or, is he going to lift the cap, so that those earning more than $92,000 a year pay on their whole salary? I would support lifting the cap.
Think about it. If you make $50,000 per year, you pay Social Security on that whole amount. That comes to $4,000 or 8%. If you make $100,000 a year, you pay only on $92,000, which comes to $7,360 or 7.36% of your salary. So, percentage wise, the person who earns less pays more than the person who earns the most. Does that seem fair to you?