Barack Obama said Friday he would apply the Social Security payroll tax which now taxes most middle class Americans with lower incomes to those above the $250,000 income.
According to the US Census Bureau 2005 reports, 28.22% of household incomes were $25,000 or below; 26.65% of household incomes were $50,000 or below with the National Median being $44,389; 18.27% of household incomes were $75,000 or below; 10.93% of household incomes were $100,000 or below; 15.73% of household incomes were $100,000 or more with 1.50% being $250,000 and above. Barack Obama has said Friday he would apply the Social Security payroll tax to those above the $250,000 income which today represents about 3 percent of the wealthiest Americans, according to AP.
Obama stated it was unfair for the middle-class to pay the Social Security tax “on every dime they make,” while millionaires and billionaires pay it on only “a very small percentage of their income.”
Currently, the 6.2 percent payroll tax applied to all income up to $102,000 a year and with Obama’s plan, the tax would not apply to incomes between that amount and $250,000 because all incomes above that amount would be taxed under his plan.
Obama stated that his plan also “allows us to extend the life of Social Security” without raising the retirement age or cutting benefits. Obama also referred to McCain for “a few years ago” stating that he might consider a higher cap on incomes subject to the tax. “But today he’s attacking me for holding the very same position,” stated Obama.
In related news, Obama has also vowed to end “the outrage of executives getting bonuses while workers watch pensions disappear” which includes forcing companies to have to disclose more about their pension fund investments.