Monday, November 12, 2007

Obama's Plan to increase the amount of income tax

Democrat Barack Obama said that if elected he will push to increase the amount of income that is taxed to provide monthly Social Security benefits.
Obama and other Democratic presidential candidates previously have signaled support for this idea.
But during an interview Obama said subjecting more of a person's income to the payroll tax is the option he would push for if elected president.
He objected to benefit cuts or a higher retirement age.
"I think the best way to approach this is to adjust the cap on the payroll tax so that people like myself are paying a little bit more and people who are in need are protected," the Illinois senator said.
"That is the option that I will be pushing forward."
Currently, only the first $97,500 of a person's annual income is taxed. The amount is scheduled to rise to $102,000 next year.
Obama's proposal could include a gap or "doughnut hole" to shield middle-income earners from paying more in taxes, he said.

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