Barack Obama has made no bones about it. He is going to eliminate the cap on payroll taxes to save the Social Security/Medicare programs. Those making over $97,000 a year will be hit with an additional 15.3% in payroll taxes for anything they make over $97,000.
Let's assume you are a $20 million a picture actor and you make two pictures a year. Obama is going to ask you for an additional $6,130,000 of new taxes over and above the $14,000,000 you pay at 35%. In other words he wants you to pay a 44% increase in your taxes to compensate for Congress's irresponsible use of the pay-as-you-go method of funding those programs over the years and promising more than they could afford - to be precise $45 trillion more and counting.. .
Now if you are a run-of-the-mill celebrity and only make an extra million above the $97,000 cap it is only going to cost you an extra $153,000 in new taxes over the $350,000 you pay to the IRS. Assuming you are a Hollywood liberal the price of being one has just gone up - thanks to your new liberal political idol.
The tragedy of such liberal philosophy is that raising taxes on the rich never makes the poor wealthy. Raising taxes on the rich will merely reduce the capital in the private sector used to keep the economy humming. Obama's raising the cap won't make the poor wealthy, it merely covers up the screw-ups of Congress and keeps massively inadequate retirement programs called Social Security and Medicare from being scrapped for better ones.
Posted by John Ray. For a daily critique of Leftist activities, see DISSECTING LEFTISM. For a daily survey of Australian politics, see AUSTRALIAN POLITICS Also, don't forget your summary of Obama news and commentary at OBAMA WATCH