Social Security Fix

[Gaspar]

This is rather retarded.  Obama has proposed to raise the SS exemption to $250K.  The sound-byte makes liberals salivate, but it's not accurate!  He's not raising it for individuals, but for households.  So he's actually raising it from 102K to 250K for a single person, but for a household it would go from 204k to 250K.  So if you are a family that owns a small business BAM kiss 50K good bye.

They are estimating that it will drop the GDP by nearly half a percent.  It will only tackle a third of the 75 year solvency shortfall of Social Security.

In high tax rate states it will raise the total tax on labor to nearly 60%.  California will just have to move it's labor (any remaining labor) to Mexico just to survive.

Rather hilarious, because most Obammites will read "Social Security Exemption Raised From $102,000 to $250,000,"  and cheer and faint.  But they won't get the fact that he is proposing TOTAL HOUSEHOLD INCOME. . . and he is not raising SS benefit rates for those households.

Surly voters are smarter than this!  Oh, God I hope voters are smarter than this!

If 50% - 60% of company payroll is devoted to taxes, I don't even know how to grasp how many companies will simply cease to be.

Wages, across the board, will have to come down significantly to absorb the impact.

Not to mention that if the GDP decreases so does the value of the treasury bonds that the Social Security trust fund uses to preserve your Social Security money (when it's not stealing from it to fund other projects).  This is taking an out-of-control vicious circle and turning it into a flaming tire rolling down hill!

Well, at least we can rest assured that stupid stuff like this most likely won't make it into law.  But it's funny that he can say it and almost no one questions it. []

I gotta hand it to Hillary, at least she understood basic economics!

Don't know how he's going to survive in the debates if he is proposing loose plans like this.  Especially when a simple change in Social Security that allows enrollees to shift investment into higher yielding securities would fix the system in less than a single generation.