Obama’s Payroll Tax: $250k+

Last friday, Democratic Presidential hopeful Barack Obama announced that he would try to apply the Social Security payroll tax to include incomes above $250,000; in addition to the current payroll tax which collects 6.2% from earnings to to $102,000 a year. It would create a “doughnut hole,” that is an area of no additional tax between $102k and $250k (though he did no elaborate on what income would be subject to this tax), in the amount of income subject to the tax. This was his plan to extend the solvency of Social Security without increasing the retirement age or reducing benefits.

Obama: Payroll tax on salaries above $250,000 [Associated Press via Breitbart]