Tuesday, October 30, 2012
Romney's Social Security Plan Is Like A 2.4% Tax On $45K Worker
This article explains how Romney plans to change Social Security. His pledge to make the plan viable without raising taxes does not work. A person earning $45K per year would have to save $1,000 per year in order to have the same benefit that she would have under today's plan. Since someone in this wage bracket will not be able to save that amount, which is 2.4% of her income, it is like a 2.4% tax. A millionaire would only have to save 0.23% of her income to compensate for the cut in benefits. The Obama administration has not taken advantage of this critical issue.