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Subject:  Re: Obama on payroll tax Date:  6/16/2008  8:53 PM
Author:  fleg9bo Number:  13451 of 20630

Personally, the "donut hole" between $102k and $250k that Obama leaves me scratching my head. Does this make sense to anyone?

It makes sense only because Obama has said many times that he will not raise taxes on anyone who makes less than $250k per year. That has to include SS taxes. So if you make under $250k, you pay what you've been paying all along like everyone else--SS tax on income up to $102k. But if you make over $250k, then the SS tax kicks back in on everything you earn over $250k. So you pay SS tax on the first $102k plus everything over $250k.

What I haven't heard addressed is whether he intends to keep the taxes on cap gains and dividends the same for incomes under $250k. If not, that will leave toothmarks in a lot of retired butts.

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