There is one item which I wish the McCain campaign would bring greater attention to: Obama’s plan to lift the income cap on social security contributions. This very fact turns Obama’s promise of a tax cut for everyone earning less than $250,000 into a complete lie.
With the current income cap for social security cap at $100,000, removing the cap translates into a $9750 tax increase for someone earning $250,000. Now, if this is a small business, we are talking about a $19,500 tax increase because of the matching rule, with the business having to match each dollar contributed by the employer. For the small business owner now earning $500,000 that would be a $40,000 tax increase! How many jobs does that eliminate?
What will be done with this money? It will be used to eliminate social security withholding for lower income individuals. Unfortunately, because of the impact this idea will have on small business, many of the same recipients of this government largesse will soon find themselves unemployed.
Oh, and I thought I heard Obama change cap his tax increase at $200,000 last night? Does this mean it will be $150,000 by election day – $100,000 by inauguration?
Time for us to speak out on Obama’s secret tax increase.