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Posts Tagged ‘tax’

Raise Income Gap, Fix Social Security Budget?

Thursday, April 28th, 2011

According to Care 2, the debt ceiling and the budget funding debate continue, with talk about possible cuts to the Social Security program. Both Republicans and Democrats have expressed their wishes to reform Social Security’s entitlement program. Although the fund itself is stable enough to pay out disability benefits to Americans, it needs reform in order to remain solvent. Republicans have called for privatization and cut backs in the program, while Democrats have suggested raising the retirement age to save funds.

Another discussion about Social Security includes adjusting the cap on how much income can be taxed. The President is backing this idea, suggesting that those making millions should pay more in taxes. The nation’s millionaires and billionaires enjoy tax cuts, while the rest continue to pay in based on their net income.

Take for example the nation’s billionaire, Warren Bufffet. The billionaire investor spoke to a crowd of college students in Virginia about Social Security, saying that he stops paying Social Security taxes on a little bit over $100,000 and then the next $50 billion a year is not taxed a dime in Social Security taxes.

Proponents of the Social Security program worry that no change will result in the program running out of funds by 2037. However, that may not mean the end of the program and Social Security disability benefits, but a reduction in the amount an individual would receive. Raising the income cap is an idea supported by many as a way to eliminate the deficit forecast for the Social Security fund.

Obama’s Proposal Taxes Rich, Saves Social Security

Wednesday, April 20th, 2011

According the People’s World, President Obama is calling for a tax hike for the rich. The President’s plan appears to be in contrast with the Republican budget cut proposals. Today’s rollout included a framework that the President said would reduce the deficit and save Medicare, Medicaid and Social Security $4 trillion by removing tax cuts for the rich.
Obama’s nationally televised speech emphasized that he would not renew Bush’s tax cuts for the rich, or 2 percent of Americans making $250,000 or more. The plan intends to protect the middle class and preserve and protect seniors who have worked hard all of their lives.
Republican Paul Ryan criticized the plan and said Obama’s proposal contradicts the GOP’s reform ideas on the table. The President said Ryan’s plan was not a budget deficit reduction but about extinguishing the long cherished social compact in America. Obama vowed to reject Ryan’s plan as long as he is president.
Obama noted that Social Security does not contribute to the nation’s deficit and that it had to be strengthened, not reduced in services. Obama again called on Ryan’s plan as a way of saying we cannot afford to keep promises to seniors, the poor and the sick, but we can afford to give millionaires and billionaires tax cuts.
Obama’s framework calls for a debt failsafe to kick in by 2014, which would trigger across the board spending reductions except for Social Security and programs benefiting the poor. About $1 trillion would come from tax increases to the rich while $3 trillion would come from various spending cuts.