Social Security Trustees estimate that by 2041 projected tax revenues will cover only three-fourths of currently promised benefits. The centerpiece of Obama's plan to ensure that Social Security remains viable in the future is to raise Social Security taxes on the 3% of Americans making $250,000 a year or more. [1-3]
In June 2008 Obama elaborated on the centerpiece of his Social Security reform proposal:
Social Security is strong, but as more baby boomers retire, the long-term cash-flow needs to be addressed. We have to make sure Social Security is there for future generations...
Here's where I would start. Right now, the Social Security payroll tax is capped. That means most middle-class families pay this tax on every dime they make, while millionaires and billionaires are only paying it on a very small percentage of their income. That's why I think the best way forward is to first look to adjust the cap on the payroll tax so that people like me pay a little bit more and people in need are protected. That way we can extend the promise of Social Security without shifting the burden on to seniors. And we should exempt anyone making under $250,000 from this increase so that the change doesn't burden middle-class Americans. This means that 97% of Americans will see absolutely no change in their taxes under my plan - 97%...
Since the New Deal, we've had a basic understanding in America that if you work hard and pay into the system, you've earned the right to a secure retirement. That's the promise that was kept for my grandparents and Michelle's parents, and for so many families here in Oregon and across the country. And if we keep that promise today, we're not just valuing work and our workers, we'll be keeping our businesses and our economy strong for the next generation. That's a future worth fighting for. And with your help, that's what I will do when I am President of the United States of America. [3]
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Does Obama support privatization of Social Security?
Does Obama support raising capital gains taxes?
Will Obama's tax plan lower or raise taxes?
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Does McCain rule out raising taxes to fund Social Security?
Does McCain support privatization of Social Security?
Did McCain say he doesn't understand economics as well as he should?
Get the facts at McCain Fact Check.
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[1] BarackObama.com. Plan to Strengthen Retirement Security
[3] Political Radar. Obama: Clinton & Washington Treat Social Security Like 'Political Football' ABC News.com October 28, 2007
[4] The American Presidency Project. Barack Obama: Remarks in Columbus, Ohio University of California at Santa Barbara June 13, 2008
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