Barack Obama opposes any privatization of Social Security. [1,2,3,4] Obama also opposes raising the Social Security retirement age, and the government's dipping into the Social Security trust fund.[3] To make Social Security viable in the future, the centerpiece of Obama's Social Security reform proposal is to increase payroll taxes on individuals making $250,000 a year or more. [4]
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Details:
In April 2005 Senator Obama strongly opposed President Bush's proposal to privatize Social Security, arguing that "the freedom to pursue our own individual dreams is made possible by the promise that if fate causes us to stumble or fall, our larger American family will be there to lift us up":
I can't help but think about the larger issue at stake here.
Think about the America that Franklin Roosevelt saw when he looked out the windows of the White House from his wheelchair - an America where too many were ill-fed, ill-clothed, ill-housed, and insecure. An America where more and more Americans were finding themselves on the losing end of a new economy, and where there was nothing available to cushion their fall.
Some thought that our country didn't have a responsibility to do anything about these problems, that people would be better off left to their own devices and the whims of the market. Others believed that American capitalism had failed and that it was time to try something else altogether.
But our President believed deeply in the American idea.
He understood that the freedom to pursue our own individual dreams is made possible by the promise that if fate causes us to stumble or fall, our larger American family will be there to lift us up. ...
In the end, this is what the debate over the future of Social Security is truly about.
After a lifetime of hard work and contribution to this country, do we tell our seniors that they're on their own, or that we're here for them to provide a basic standard of living? Is the dignity of life in their latter years their problem, or one we all share? ...
Since Social Security was first signed into law almost seventy years ago, at a time when FDR's opponents were calling it a hoax that would never work and some likened it to communism, there has been movement after movement to get rid of the program for purely ideological reasons. Because some still believe that we can't solve the problems we face as one American community; they think this country works better when we're left to face fate by ourselves.
I understand this view... But I couldn't disagree more. If we privatize Social Security, what will we tell retirees whose investments in the stock market went badly? We're sorry? Keep working? You're on your own? ...
This isn't how America works. This isn't how we saved millions of seniors from a life of poverty seventy years ago. This isn't how we sent a greatest generation of veterans to college so they could build the greatest middle-class in history. And this isn't how we should face the challenges of this new century either...
I think we will save Social Security from privatization this year. And in doing so, we will affirm our belief that we are all connected as one people - ready to share life's risks and rewards for the benefit of each and the good of all.
Let me close by suggesting that Democrats are absolutely united in the need to strengthen Social Security and make it solvent for future generations. We know that, and we want that. And I believe that both Democrats and Republicans can work together to do that. [2]
Obama opposes raising the Social Security retirement age, as well as the government's dipping into the Social Security trust fund. [3]
The centerpiece of Obama's plan to ensure that Social Security remains viable in the future - Social Security Trustees estimate that by 2041 projected tax revenues will cover only three-fourths of currently promised benefits - is to raise Social Security taxes on the 3% of Americans making $250,000 a year or more. [3,4]
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. [4]
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What is McCain's position on Social Security?
Get the facts at McCainFactCheck.com
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[1] BarackObama.com. Plan to Strengthen Retirement Security
[2] A Hope to Fulfill. Remarks of Senator Barack Obama: National Press Club April 26, 2005
[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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