Obama will raise taxes by a trillion dollars

[denem]

Mark Penn is at it again

In the Democratic race, the Obama team - accused last week by the Clinton campaign of distributing a misleading mailer about Clinton's health care proposal - shot back at the New York senator's campaign, accosting the Clinton camp for a mailer sent to Massachusetts households that claims Obama would raise taxes by a trillion dollars.

That's nearly one-third of the size of the federal budget, and a charge that Representative William Delahunt of Massachusetts called "absurd."

My first reaction was, 'Someone's joking,' " Delahunt, who has endorsed Obama, said in a conference call with reporters. "It tells me that there is panic inside the Clinton campaign."

The trillion-dollar figure is based on Obama's proposal to lift the cap, though not entirely, on the amount of earnings subject to the Social Security tax. Currently, only earnings up to $97,500 a year are subject to the FICA tax, meaning people earning $30,000 a year pay a higher Social Security tax rate than people earning many millions of dollars a year.

But the Clinton campaign's mailer said Obama "wants to raise Social Security taxes by a trillion dollars." Clinton spokesman Phil Singer said outside analysts have backed up the trillion-dollar figure.

However, Obama's economic adviser, Austan Goolsbee, said that number could only be true if the cap were lifted entirely and immediately on all wage-earners - something he said Obama does not support. "It isn't Senator Obama's policy, it isn't a trillion dollars, and it isn't on the middle class," Goolsbee said.

http://www.boston.com/news/nation/articles/2008/02/04/o... /

Many things may said in primaries. Hillary's ham fisted illustration of Health Care mandates as "going after peoples wages" is a gift to the Republicans that keeps on giving.

I am in favor of mandates, I prefer Hillary's economic polices, but this sound bite is nearly as good as Mondale's greatest hits. Republican: "I will blah blah blah, and unlike Clinton I WILL NOT BE GOING AFTER YOUR WAGES".

[FormerDittoHead]

1. hey - maybe by lifting the cap they can lower the RATE? Anyone suggest THAT?

I mean, if you make $10,000 a year, you pay the same RATE as someone making $90,000 a year.

But if they lift the cap to say, $200,000 a year, BUT MADE THE CHANGE REVENUE NEUTRAL, then they could LOWER THE RATE.

Also, how about it applying to ALL income (or more sources of income) not just WAGES, but say, RENTAL income or SHORT TERM capital gains...

ANYONE SUGGESTING ANY OF *THAT*???

[TheCowsCameHome]

2. That would make too much sense.

[denem]

3. It's a good idea.

AS in - unless you earn more than $250,000 you will pay less.

[Occam Bandage]

4. The purpose of lifting the cap is to increase revenue.

We're trying to extend the life of social security here.

[denem]

7. Of course but you can raise the cap - all the way

cut the rate, and still be miles ahead.

[FormerDittoHead]

8. You could do a little of both, eh? I still think it would be a good idea...

You could still raise the cap (or eliminate it, whatever) and raise revenue WHILE lowering the rate. Just don't lower the rate as much to be revenue neutral.

Even if you lowered the rate a LITTLE, making it revenue POSITIVE, it would benefit the lower classes exponentially more, as there is no "floor" on SS taxes...

[Aviation Pro]

5. How about making corporations pay an "outsource" tax?

When the ship out labor overseas. Make it something onerous like 400%. That'll get the attention of, apologies for this word, the cocksuckers in the board room.

[FormerDittoHead]

10. That too. Although I'm thinking it would be a max-expense rate like meals...

I don't see having an "outsource tax" working as easily as just playing with the amounts that such expenses could be deducted...

For example, while traveling, meals are only 50% deductible. I'm thinking along those same ways - make outsourced "services" only 20% (10% whatever) deductible... So for every dollar you pay an overseas call center, you can only deduct 20 cents off of your income...

[cpamomfromtexas]

6. Well Hells Bells- why not tax that given in lieu of salary (options)

when cashed out too?

The bigwigs will get around everything unless you treat them the same, folks! They'll just take theirs in options please.

[FormerDittoHead]

11. We've got some smart people here...

Exactly to the point about only WAGES being taxed by social security.

I agree that the scope of what's taxed should be broadened.

Currently, for example, people day trading making short term capital gains pay NOTHING into social security...

Their net income, the profits, THEIR salary, goes UNTOUCHED by social security...

We're all thinking along the same lines...

[Coexist]

9. hmmm.... that sould pay for 10 months in Iraq.