Obama's Pie Plan
Awhile back Michelle Obama took some well deserved flack for her comments that
in order to get things like universal health care and a revamped education system, then someone is going to have to give up a piece of their pie so that someone else can have more.
Well, Blogfather Hugh did some research and found out just where Team Obama wants to start slicing and dicing your pie. Everyone knows the Social Security system is in deep trouble. It doesn't take a rocket scientist to figure out the return on investment in that system is pitiful. The actual ROI on monies put into the Social Security "Trust Fund" hovers someplace around 1%. A monkey throwing darts at a stock chart could get a better return than that – yet we as a country still require workers to shovel 12.4% of their income down that proverbial rat hole.
Before I start getting snarky emails saying "Cordeiro, workers only pay 6.2% into the system!", let me remind you that you only pay half of the Social Security payroll tax. Your employer picks up the other half. If you're self employed, as I was some years ago, you get to pay the Full Monty. Believe me, having to actually cut that check to the Treasury really, really, really, really sucks.
Where was I? Oh, yes, the rat hole. The one good thing about the Social Security is that it has a cap. Only the first $102K of your income is subject to the Social Security tax. The rest of your income, providing you make any, over and above the $102K level isn't subject to that tax. You get to keep it. What a novel concept!
Unless, of course, America is foolish enough to put Barack Obama in the Oval Office Big Chair. Obama wants that income not subject to Social Security taxes. In short, he wants more of your pie. I'm not making this up. Here's Obama's own (website) words on the subject:
Obama believes that the first place to look for ways to strengthen Social Security is the payroll tax system. Currently, the Social Security payroll tax applies to only the first $102,000 a worker makes. Obama supports increasing the maximum amount of earnings covered by Social Security and he will work with Congress and the American people to choose a payroll tax reform package that will keep Social Security solvent for at least the next half century. (Emphasis Added)
I'll refer you to Blogfather Hugh for the nuts and bolts links about how many Americans would fall under Obama's new Pie Plan, but I'm now convinced Obama only understands one tax rate and that is MORE.
Social Security was never designed to become what it is today. The system now represents an unsustainable transfer of wealth from one segment of the population to another. No matter how you slice and dice the population pie, there simply won't be enough future wage earners to support the Social Security recipients in years to come. Those of my generation (I'm 37) who believe they'll be able to get by on whatever meager Social Security check they'll receive during their golden years are simply foolish. That's assuming the system will last until then – which at this point is looking more doubtful every day.
Guys and gals like me are left attempting to save for retirement, pay for kid's education, and all the rest of life's expenses with whatever is left after government gets done sucking the very life out of our paychecks. The 100K mark is a big achievement in anybody's pursuit of happiness. You'd think once somebody reached that level, the government could congratulate him/her and say "Great job – keep the change".
Barack Obama doesn't want to congratulate hardworking Americans. He's bent on getting as much out of that paycheck as the Congress will let him. Obama, House Speaker The Pelosi, and Senate Majority Leader Dusty Harry Reid (D-Circus Circus) share the same tax dream – MORE.