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Fact Check: Sen. Obama on Social Security
Today, Sen. Obama's campaign claims that Sen. Obama has never argued for completely eliminating the cap on the Social Security payroll tax.
This is false. In a September 2007 Quad-City Times op-ed, Sen. Obama argued that by lifting the cap for Social Security completely, 'we could virtually eliminate the entire Social Security shortfall:'
I believe there are a number of ways we can make Social Security solvent that do not involve placing these added burdens on our seniors. One possible option, for example, is to raise the cap on the amount of income subject to the Social Security tax. If we kept the payroll tax rate exactly the same but applied it to all earnings and not just the first $97,500, we could virtually eliminate the entire Social Security shortfall.
In a debate two months later, Sen. Obama defended the idea of lifting the cap entirely.
But what we can do is adjust the cap on the payroll tax. Right now anybody who's making $97,000 or less, you pay payroll tax on 100 percent of your income. Warren Buffet, who made $46 million last year, pays on a fraction of 1 percent of his income. And if we make that small adjustment, we can potentially close that gap and we can make sure Social Security is there...
Understand that only 6 percent of Americans make more than $97,000 -- so 6 percent is not the middle class..
The Urban-Brookings Tax Policy Center estimates that lifting the payroll tax completely would increase taxes more than $1 trillion over ten years.
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