Many of Obama’s credits are refundable, which means the government will in essence write a check to make sure that you get the full value of the credit even if it’s more than you owe in taxes.
Under the Obama plan, some of the poor would in fact pay a negative tax - that is, they’d get money back from the government - even after including payroll taxes. cnn.com article.
By giving credits on the Income tax side to cover a portion of many people social security side. Every other time in our history of Social Security if we raised or lower taxes we raised or lower ending benefits. (NOTE: the benefits may not have kept up with the adjustments) Obama’s plan is to effectively cut payroll taxes through the federal tax system causing many to get back more than they pay for either one, and raise payroll taxes on the wealthy. He has offered no increase or decrease in benefit. Since both taxes go into the same fund he is using one to cut the other.
To me this approach will destroy what SS was meant to do, It was not meant to be a total hand out. Do you agree with me?
One note, I want to help the poor, but refunding more in taxes than what they are paying in is a JOKE, we have systems designed to prevent the extra AID from being spent on drugs and alcohal, this has none of that.
If Socail Security was privatized 35 years ago, even with the Dow at 8500 people would have still seen a 3-6% real rate of return including inflation. Dow at 800 in 1982. Fica offers a return of less than inflation. If people turning 66 today would have privatized they would be alot better off, even with the downturn.
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5 responses so far ↓
1 volstommy3000 // Oct 20, 2008
Yea, if Obama president we are done for.
2 Dave87gn // Oct 20, 2008
The republicans will destroy Social Security. Remember, it wasnt long ago that Bush tried to privatize SS and put all that money in the stock market…Where would we be if he succeeded???????????
3 needlewings // Oct 20, 2008
Not much worse than McCain's plan, Dave87 is right!
4 Demorat // Oct 20, 2008
Dude, Social Security is ALREADY destroyed. From the day it was started.
5 Patchass // Oct 20, 2008
Dave87gn: “The republicans will destroy Social Security. Remember, it wasnt long ago that Bush tried to privatize SS and put all that money in the stock market…Where would we be if he succeeded???????????”
You’re wrong. He wanted to let us HAVE THE CHOICE to put SOME of the money that’s STOLEN from our paychecks into the stock market IF WE WANTED TO. If not, it would be invested in the same old treasury bonds.
Do a little research before you go spewing your incorrect nonsense.
Obama’s plan for fiscal issues of our country will drive the economy into the ground and drive the national debt up.
Not that McCain’s spending plan is much better. At least he has the sense to consider cutting the budget enormously.
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