Obama To GOP: I’m Serious About Cutting The Social Safety Net - TPMDC

[LooseWilly]

58. You do realize that the cap on incomes taxed for SS could always be raised, right?

SS tax (6.2 % of income paid by employee, 6.2 % paid by employer- or self if self-employed ... with a drop to 4.2% for the employee portion in 2011 & 2012 ... which rose back up to 6.2% for employees for 2013) is only charged on the first $106,800 of 2011 income and only up to $110,100 for 2012 income.

This means that, if you earn 400,000 of income in 2012 (on your w-2), you will only pay SS taxes on the first 110,100. the remaining 289,900 is completely SS tax free.

Raise the ceiling by 100K... and SS will take in an extra 12.4% on every earned dollar in-between.

As for medicare... add an extra .5% for employer and .5% for employee?

There are better solutions to fix these programs... but that's not really the point. The point is that Republicans WANT to cut them... and Obama is letting on that he's willing to join in if they'll help eliminate the arbitrary sequester budget cuts, and substitute some taxes for a portion of the cuts.

Someone will have to be sold down a river...