FICA
Posted at 9:32am on Jun. 24, 2008 Barack Obama on the Social Security Tax
Wrecking America’s Entrepreneurial Strength
By blackhedd
Senator Obama recently made an important proposal in regard to taxes. We’ve known for a long time that he intends to raise all kinds of taxes, including capgains taxes and income taxes on high earners. His specific recent proposal is to extend the FICA (Social Security) levy so that it will apply to all income above $250,000.
That may sound weird to you. It is, and here’s why: today the roughly 12.5% FICA levy is only applied to a bit more than the first $100,000 of income. Of course that makes sense because Social Security benefits are only based on that amount of income: if you make more than $100,000 in any given year, it doesn’t increase the retirement benefits you get.
Obama is proposing to charge the FICA tax on the first $100,000 of income (just as today), and then stop applying it to income between $100,000 and $250,000 (again, just as today), and then re-apply the tax to all income above $250,000.
Income above $250,000 will pay the Social Security tax, but will not contribute to the benefit calculation.
What is Superman trying to accomplish with this? What does he want us to think he’s trying to accomplish? And what will be the real effects?
Keep reading…
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