Details Missing From Obama's Social Security Plan - NBC Right Now/KNDO/KNDU Tri-Cities, Yakima, WA |

Details Missing From Obama's Social Security Plan

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WASHINGTON (AP) - Critics say Barack Obama's bid to place a new
Social Security tax on very high incomes is either a bold or
foolhardy plan.
But its potential impact is almost impossible to gauge because
he is providing few details on basic questions, such as what the
tax rate might be, what types of income would be taxed and how the
taxpayers' benefits would be affected.
Obama made headlines last month when he called for a Social
Security payroll tax on incomes above $250,000 a year.
He told voters in Ohio it's unfair for middle-class earners 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."
Right now the first $102,000 of each worker's income is taxed at
a 6.2 percent rate, which employers then match. Obama's aides have
quietly indicated the proposed tax rate on incomes above $250,000
might be about 2 percent to 4 percent.
It's also possible that it would apply to more types of income,
including dividends and investments.
(Copyright 2008 by The Associated Press.  All Rights Reserved.)