Monday, July 28, 2008

Barack Obama's Plan to Save Social Security and Its Potential Ramifications

Senator Obama has proposed to extend the payroll tax on earned income to those making over $250,000 or more. Currently workers pay a percentage of their earned income to Social Security only up to $102,000. Anything earned beyond the first 102k is not subject to any Social Security taxes. The Cato Institute's Daniel Mitchell has a video posted on his blog where he discusses the plan and its likely effects on our economy and the prospects for future growth.

Obama is proposing a plan that will make the private sector $5 poorer for every $1 gained by The Government. If this is not indicative of one of the most terribly destructive and myopic policy proposals around, then I do not know what is.

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