2016 Postmortem
Related: About this forumMartin O'Malley to campaign on expansion of social security.
Democratic hopeful will lay out goal of ensuring within two terms of office that 50% of Americans have enough retirement savings.
The Democratic presidential hopeful Martin OMalley is to unveil a detailed plan to expand social security on Friday.
In a white paper shared with the Guardian, the former Maryland governor calls for expanding social security benefits and raising the payroll tax used to fund the government retirement program so that all income above $250,000 is taxable. Currently the threshold on earnings subject to the social security tax is set at $118,500. The OMalley campaign would create a doughnut hole, exempting income over $118,500 and below $250,000 from taxation. The overall goal of OMalleys plan is to increase the number of Americans with adequate retirement savings by 50% within two terms in office.
OMalley also expresses his support for a number of other progressive goals including the controversial fiduciary rule recently introduced by the Department of Labor which requires financial advisers to provide advice in the best interest of their clients as well as changing how cost of living adjustments are calculated to provide increased benefits to retirees.
http://www.theguardian.com/us-news/2015/aug/21/martin-omalley-to-campaign-on-expansion-of-social-security
msongs
(67,420 posts)FSogol
(45,488 posts)djean111
(14,255 posts)That's why I will be introducing the Keeping Social Security
Promises Act as soon as the Senate gets back into session.
This legislation will strengthen Social Security for the next 75
years by asking the wealthiest Americans to pay their fair share into
Social Security.
Specifically, my legislation would apply all income over $250,000
a year to the Social Security payroll tax.
The Chief Actuary of the Social Security Administration has
projected that doing this will ensure that Social Security can pay out all
benefits for at least the next 75 years.
In fairness, I can't take credit for this legislation. It is exactly what
Barack Obama proposed to do when he campaigned for President back
in 2008.
During the presidential campaign, candidate Barack Obama said:
"What we need to do is to raise the cap on the payroll tax so that wealthy
individuals are paying a little bit more into the system. Right now,
somebody like Warren Buffet pays a fraction of 1 percent of his income
in payroll tax, whereas the majority . . . pays payroll tax on 100 percent
of their income. I've said that was not fair." The President's specific
campaign proposal was to apply Social Security payroll taxes to all
income above $250,000. In other words, the proposal I will be
introducing is exactly what the President campaigned on.
................
Interesting how that rolled out - went from campaigning on increasing the cap to putting chained CPI on the table and Obama and Pelosi telling us that would "strengthen" Social Security. Well, yeah - if by strengthening they mean pay less out. That is not what Social Security is about.
Armstead
(47,803 posts)Why not just set it at $250,000? Isn't the effect the same?
djean111
(14,255 posts)pay social security taxes.
askew
(1,464 posts)They would only pay SS tax on the first 118K and not on the remainder up to $250K. That would help upper middle class people in urban areas who aren't technically rich. Once they hit $250K, everything would be taxed again.
I think it is a fair compromise.
bigtree
(85,998 posts)...exactly.