Barack Obama: Adjust tax rules, encourage savings, trim waste
The Charlotte Observer | April 28, 2008
By Barack Obama
Americans who work hard their entire lives have earned the right to retire with dignity and security. That's the promise that each of us wants to be realized within our own families. But Washington is not working to preserve this fundamental part of the American dream.
A secure retirement is no longer a guarantee for the middle class. It's harder to save for retirement, pensions are getting crunched, and prescription drug prices are slipping out of reach. The promise of Social Security may grow harder to keep for future generations. That's why I have proposed a comprehensive agenda for retirement security.
It starts with protecting Social Security today, tomorrow and forever. Social Security is strong, but as more baby boomers retire, the long-term cash-flow needs to be addressed. We should not raise the retirement age or cut benefits. I'm also against privatization, and stood up against President Bush's plan to create private accounts. Right now, the Social Security payroll tax only applies to the first $102,000 a worker makes. The best way forward is to adjust the cap on the payroll tax so that only the wealthiest Americans pay more and people in need are protected, and we should include a "donut hole" to ensure that lifting the payroll tax cap does not ensnare any middle-class Americans.
But it's harder for Social Security to cover a secure retirement, as seniors struggle with rising costs. That's why I've proposed eliminating all income taxes for seniors making under $50,000, including over 150,000 North Carolina seniors, saving them about $1,400 per year.
We also have to encourage savings so it's easier to retire.
