Wednesday, June 11, 2008


Stephen Moore, The Wall Street Journal's "senior economics writer" doesn't understand the basic rules of the Social Security tax.
In various tax proposals Mr. Obama has set the definition of rich at levels of $100,000, $200,000 and $250,000 in annual income. He has vowed, for example, to erase the Bush tax cuts not only for those who make more than $250,000, but to end the cap on Social Security taxes, which amounts to a tax hike on anyone who makes more than $100,000 in income. More recently, Austan Goolsbee, an Obama economic adviser, told me the new cap might be set at $200,000.

All of this has caused some heartburn among certain Democrats in high cost-of-living states. New York Rep. Joseph Crowley says a couple with earnings of $100,000 could be "a police officer and nurse." "In New York City," he adds, "they'd be struggling."
As Media Matters points out, Social Security taxes are levied against individual incomes, not joint incomes, so unless that cop and his wife are making $100,000 on their own, they'd see no change.



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