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Obama Endorses Changes To Social Security Tax Cap
Appearing yesterday on Meet The Press, Barack Obama endorsed raising the cap on taxable income for funding Social Security — a politically treacherous proposition.
Raising the cap by itself would amount to an immediate tax increase on the middle class, but Obama indicated he would support a sort "doughnut hole" proposal to have the tax kick in again at a higher income, skipping over income levels between the current cap and the new threshold.
I think the best way to approach this is to adjust the cap on the payroll tax so that people like myself are paying a little bit more and people who are in need are protected," Obama said.
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That's a funky definition of "middle class" you've got there. The median income is around $42K for men, $32K women--the cap is well more than twice that.
November 12, 2007 9:17 AM | Reply | Permalink
Now the Senator is stealing Al Franken's ideas . . .
Still not good enough to get him off for saying voting does not matter when human rights are on the line.
November 12, 2007 9:19 AM | Reply | Permalink
This is a most excellent idea. It is absurd that folks making over $100,000 are exempt from this while Hedge Fund profiteers pay 15% on their gains. Senator Clinton's failure to commit to this is one reason I have been lukewarm towords her. Another reason to make me really look at Obama, as well as Edwards.
Thank goodness, we are talking policy and not personality.
November 12, 2007 9:47 AM | Reply | Permalink
Unfortunately, he also stated to Russert that in his social security "crisis" that all ideas are on the table. On this issue of the social security non crisis and the horrible idea of bringing this up see Krugman, Atrios, etc.
November 12, 2007 10:27 AM | Reply | Permalink
This may be the only EC post about Obama on MTP, so I just wanted to add an observation.
If you have a chance to watch a video repeat of that MTP program, pay attention to Tim Russert's face. I think he did his best to try to 'gotcha' Obama, and from watching Russert's face, it looked like Russert got increasingly frustrated that he couldn't accomplish that goal. By the end of the program, Russert actually looked rigid with frustration......
or maybe Russert was just tired.
Again and again, Obama took the potential 'gotchas' and spoke quietly, directly, and truthfully to any issues brought up. Obama's strength which is derived from a core of honesty is uniquely powerful among politicians.
November 12, 2007 10:37 AM | Reply | Permalink
It should have been raised a long, long time ago. Unfortunately, repubs will twist this into a tax hike and those nasty tax and spend dems. On the flip side, at least he is taking a stand on something, which the front-runner refuses to do, other than on war.
November 12, 2007 10:40 AM | Reply | Permalink
I love the smell of a good Democrat in the morning... This is what I love about Obama; he's honest. This is the right thing to do and he does it even though I'm sure it'll cause some criticism from the Republican side of the room. We mustn't be afraid to stand up for the principles to which we adhere just because the "Right" (which, really, can we change that?) has a great spin machine.
November 12, 2007 11:30 AM | Reply | Permalink
DonnaG:
Thank you for bringing that up -- it's actually more important than his slip-up on Social Security -- please point to where you think Obama DIRECTLY answered the question "How many troops do you envision would have to remain in Iraq for some time to come?":
SEN. OBAMA: Here’s what I’d do as president: We can get one to two brigades out per month safely. At that pace, we would have all our combat troops out in about 16 months from the time we initiate it. I would like to see it start now. It is not clear that that’s possible, given George Bush’s posture. But 16 months from the time we initiate it, we could have our combat troops out.
The only troops I would have in Iraq would have a very limited mission. Number one, to protect our embassy and our civilian, diplomatic corps. I don’t want Blackwater to be providing that security; I want our U.S. military to providing—to provide that security. I’m very skeptical about the use of private contractors when it comes to our national security. The only other mission, and this is a very narrow one, would be to engage in counterterrorism activity. If al-Qaeda in Iraq is reforming bases there, we should have the capacity to strike them. That would be it. Those would be the only troops that we would deploy.
MR. RUSSERT: How many would that be?
SEN. OBAMA: Well, you know, I’m going to leave that up to the, the commanders on the ground, because my job is to set a clear mission for them. Their job is to then tell me, “This is what we need to achieve that mission.”
MR. RUSSERT: But, but — yeah, but we have 165,000 there now. Are we talking 150,000?
SEN. OBAMA: There, there — here’s what I’ll say, Tim. We will have the vast majority of the troops who are there gone. This war will be over; there will be no permanent bases. So when I hear, for example, others say, “I will have all troops out,” well, the fact of the matter is who’s going to protect our embassy? Who’s going to protect our civilian forces? Are these folks suggesting that we’re just going to leave them to wander around the streets and rely on the Iraqi military to do that? Obviously not.
http://www.msnbc.msn.com/id/21738432/page/3/
November 12, 2007 11:44 AM | Reply | Permalink
Eliminating the income cap will bring more money into the Social Security trust fund (which is only a book keeping entry). Since this money can only be used to buy Treasury securities, this means that the enhanced trust fund will continue to be used to cover spending that has already taken place.
Can someone explain how this helps seniors or is fair to the young? These gimmicks never work which is why Social Security solvency has to be "fixed" every decade by bi-partisan commissions.
This is an example of Obama's bold thinking?
November 12, 2007 11:46 AM | Reply | Permalink
Donna G excellent point:
Obama's strength which is derived from a core of honesty is uniquely powerful among politicians.
I think that honesty and obviously an impressive memory is what allowed him to deflect Russerts totally deceptive statement about what Obama said about his position on the war prior to making the DNC speech in 2004. I was most impressed at how he put that statement in context of not wanting to put the Presidential candidates in a bad light given they had all voted for the AUMF. Another reason why I find him to have exceptional principles.
I marvel each day at how so many 2006 candidates up for re-election had Obama out stomping for him and how much money he raised for the Democratic party...yet now none of these 'peers/colleagues' are stepping up to the plate to endorse Obama even though they all owe him big time. They are just too afraid of the Clintons and their possible political venegenance. The good thing is that Obama will not owe any favors when he is inaugurated in 2008..not even to his own party members and especially not to the CBC, Sharpton or Jackson, Waters, Jackson-Lee,Rangel,Fitzpatrick or the shortsighted John Lewis himself.
JakeD
Please indicate what it is precisely that you wanted to know that Obama failed to answer. Did you want a specific numer? If so, Obama clearly said the number will be determined by the military. Can you honestly expect him to give a 'gotcha' answer? Where if his number is different from the military he can be grilled about it whether is readjustment based on new information is good judgment versus simply 'staying the course' to appear resolute despite gross failure?
November 12, 2007 12:47 PM | Reply | Permalink
Kucinich has indeed given a number: ZERO. Just to remind you, I was not the one who claimed "Obama directly answered every question." Here are the three, unanswered questions again:
1) How many troops do you envision would have to remain in Iraq for some time to come?
2) How many would that be?
3) We have 165,000 there now. Are we talking 150,000?
November 12, 2007 12:54 PM | Reply | Permalink
P.S. How, exactly, is "not wanting to put the Presidential candidates in a bad light given they had all voted for the AUMF" back then consistent with now "putting Hillary in a bad light for voting for the same, exact thing"? Follow-up question: what's your definition of "principles"?
November 12, 2007 1:03 PM | Reply | Permalink
JakeD regarding:
1) How many troops do you envision would have to remain in Iraq for some time to come? 2) How many would that be?3) We have 165,000 there now. Are we talking 150,000?
All 3 of these questions were answered by Obama saying that it will be determined by the military and that he would redefine the mission in Iraq. Each of us is different in terms of what we expect from candidates. I want to know where the candidate stands, and for Barack when it comes to Iraq...I know his mission is to bring the troops home in 16 months and only leave sufficient numbers to protect our emabassies and national interests. That to me does not lend itself to a quantative response as that would be projecting without military advice. Until he hears from those military experts it is wise not to give a specific number and I respect and appreciate that. Obama is a skilled negotiator and that exchange with Russert gave me confidence that he can handle world affairs and diplomacy when it comes to discussing issues on the table without putting the US in an untenable situation. Very wise and clearly principled response.
Your PS
Obama was not a presidential contender when he was interviewed by Russert prior to the 2004 nomination. He was speaking 'on behalf' of the candidates. Hillary is his opponent and therefore the principles are totally different. He is right to make clear distinctions between what he believes and how he would act vs. what she beleives and how she would act. That is what primaries are for. He has no obligation to support HRClinton. Democrats have a clear choice when it comes to the war this time, they did not have a different choice in 2004. Making that distinction would not have been helpful to Democratic voters. However, it is now as he is one of the candidates that can be our nominee.
Surely, you are not suggesting that Obama should not draw clear distinctions between himself and Hillary on policies and issues are you? Do you believe that Hillary had an obligation to not call Barack 'naive and irresponsible' with regards to his approach to foreign policy? Do you think she was helping the Democratic party with those remarks?
These are the primaries Jake and now is the time for all Democrats to understand what their choices are when it comes time to select our party nominee.
November 12, 2007 1:35 PM | Reply | Permalink
Jake D: Following your logic that Obama's answer to Russert on numbers of residual troops Obama would leave in Iraq is a non specific answer......I agree that the answer does not give specific numbers, and instead gives only the specifics of his stated position with respect to a need for residual troops.
It is just as though I asked you to tell me how much snowfall will occur on January 20th, 2009, so that I could know fourteen months ahead what winter clothing I should buy for Obama's inauguration. You could tell me that it will likely be very cold, and may snow, and that I should be prepared with winter gear on hand, but you could not tell me specifics ahead of time.
November 12, 2007 2:04 PM | Reply | Permalink
You notice that Obama refused to even rule out 150,000 troops staying in Iraq, right? Again, I guess that's what passes as "principles" now in your party.
BTW: if I had to similarly guess, there will be no snowfall in D.C. on January 20, 2009, and Romney will be the one inaugurated, not Obama ; )
November 12, 2007 2:17 PM | Reply | Permalink
jake d, I haven't watched the interview yet. I dvr'd it. However, the quotes look pretty clear to me. Do you read english? Or is english your second language? Maybe that explains the misunderstanding.
November 12, 2007 2:40 PM | Reply | Permalink
Jake
Regarding your guess on snowfall...it really is very UNpresidential.
Presidents have to be decisive and part of being decisive is knowing when not to speak or attempt to project knowing what you do not know...as that is what guessing is.
Nobody wants a guesser with their hand on the redbutton.
Either you decide to push or not.
NO GUESSING!!!
November 12, 2007 2:42 PM | Reply | Permalink
I read English, and it is not my second language -- the quotes were, indeed, very clear to me that Obama refused to even rule out 150,000 troops staying in Iraq -- as for me being "UNpresidential" #1 I am not running for President, so maybe my "principles" are still intact, and #2 it's at least a RESPONSIVE answer ; )
November 12, 2007 3:51 PM | Reply | Permalink
Actually, it's Hillary who is twisting this issue, saying that if you lift the cap entirely, it's a $1 trillion tax hike. Of course, she knows that Obama wasn't saying lift the cap entirely, just raise it somewhat (perhaps with a doughnut hole), but she, like her entire campaign staff, can't resist twisting the truth to slam her opponent.
November 13, 2007 3:19 PM | Reply | Permalink