Okay, that's not exactly fair, since he hasn't presented one yet. But he has given us hints, in that he intends to remove the Social Security tax on all of those now paying it, and transfer the entire burden to those making over $250,000 per year. This has the instant appeal of being a 6% tax cut for all those paying the FICA tax presently. Whoo Hoo. How are you going to spend that windfall?
But what is the net effect of using this proposal? Since those making $250k are in the top 1% of all earners, I would have to assume that they will be paying around 30% of their pre-tax income for this tax in order to keep it revenue neutral. Besides, what are they going to do with that approximately $75k anyway? Sure, they might not buy a new car this year causing unemployment in the auto industry, or they may not construct a new house causing further contraction in the construction industry. Or they may not invest it in a company preventing further enhancements to keep the company competitive, allowing all of that business to be speedily and orderly transferred to China. No, the rich won't miss that money.
But we will.
Another problem with this proposal: Does it change the basic social contract? For instance, at the moment everyone who works pays into the Social Security trust fund and expect to receive money back when they retire. The more you make, the more you are able to draw in retirement. But all workers would receive something more than just the equivalent of Social Security Supplemental Income, otherwise known as "federal welfare."
Under Obama's plan, what would be your claim to receive benefits? That you worked? So what, so did everyone else. How about that you deserve it because you were promised it for your entire working career? But the new system would not count for more if you worked hard and made a lot of money. It would be nothing more than welfare. And as such it could be means tested, since you didn't contribute to the plan, but instead relied solely on the contributions of others. (Admittedly, this is when the current workers have cleared out of the way, and the entire burden is financed by the over $250k crowd).
This rending of the social fabric that would turn once proud workers into welfare recipients strikes me as appalling. I can only hope that Obama's comments on his plan carry the same weight as support for Rev. Wright, or NAFTA, or clean campaigning, or campaign finance reform, or . . . well, you get the drift.