WASHINGTON – Democrat Barack Obama called yesterday for jacking up the payroll tax, which would slap top wage earners with tens of thousands of dollars in additional fees.
Under his plan – which would be the largest tax hike in at least a decade – the 6.2 percent payroll tax would be applied to the entire income of workers making $250,000 or more a year. Currently, that rate applies only to the first $102,000 of income.
“That way, we can extend the promise of Social Security without shifting the burden onto seniors,” he said yesterday.
Social Security is slated for bankruptcy after years of the federal government raiding it.
A worker making $200,000 a year would pay no additional payroll taxes under Obama’s plan. But anyone making $250,000 a year or more would pay 6.2 percent in payroll taxes on their entire income – not just on their first $102,000.
Though Obama’s tax-hike plan is still vague, it appears the tax would apply also to employers who match workers’ payments, amounting to another proposed tax increase on businesses.
“Barack Obama likes to think that his tax increases will only hit a few Americans, but in truth, his economic plan will be a disaster for everyone, especially seniors,” McCain spokesman Tucker Bounds said.
“Because of Barack Obama‘s tax increases, one out of every three senior households will end up paying higher taxes,” he said.
Campaigning with seniors in Columbus, Ohio, yesterday, Obama also accused McCain of wanting to privatize Social Security.
“Privatizing Social Security was a bad idea when George W. Bush proposed it. It’s a bad idea today,” Obama said.
While neither Bush nor McCain has proposed “privatizing” Social Security, both support allowing workers to siphon some of their Social Security payments into private accounts.
“Imagine if your security now was tied up with the Dow Jones,” Obama said, alluding to the recent tumble in stock prices. “You wouldn’t feel very confident about the security of your nest egg.”
Campaigning yesterday in New Jersey, McCain swatted back, accusing Obama of misrepresenting his position on the crucial issue. “I will not privatize Social Security,” he said. “But I would like for younger workers, younger workers only, to have an opportunity to take a few of their tax dollars, a few of theirs, and maybe put it into an account with their name on it. That’s their money.” With Post Wire Services
churt@nypost.com