Obama’s Proposed Social Security Cuts Are Wrong

Last week, The White House released a summary of President Obama’s budget. The proposal aims for a 3 to 1 spending cuts to tax increase ratio to reduce the deficit over the next 10 years. But the biggest headline from Obama’s budget plan is the $230 billion he wants to cut from Social Security.

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Fact of the Day: The Social Security Wage Cap For 2013 Is $113,700

What is the Social Security “wage cap”? It’s the maximum income level taxed at the 6.2% rate for Social Security benefits. All income above the cap ($113,700 in 2013) is free and clear of Social Security (payroll) taxes. Yes, you read that correctly. All income above the wage cap is exempt from Social Security tax. It’s safe to say this is quite a regressive tax.

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GOP Disdain for Americans Who Don’t Pay Income Taxes

There is a growing chorus of Republicans singing the same tune about a recent report that 46% of Americans pay no federal incomes taxes. The voices include Michele Bachmann, Jon Huntsman and Rick Perry to name the most prominent. I posit that the reason they point to this statistic is to offer further proof towards a longstanding conservative narrative that there are people in this country getting a free ride. That these people are the freeloaders that are taking advantage of the “productive class” in this country.

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