Senator Barack Obama urged changes in the current social security system which protect the wealthy from paying their fair share of taxes. The present system requires American workers to pay 6.1% of their income up to $102,00 to social security which, in effect, means a person earning a million dollars a year pays less than 1% in social security taxes. Many economists have long argued making this simple change will ensure the solvency of social security into the future. Obama also indicated a desire to exempt salary from the present $102,000 up to $250,000 to be exempt from the change. In other words, the top 3% of the wealthiest Americans would finally be compelled to pay their fair share of taxes.
Senator Obama also criticized Senator McCain’s idea that workers would be allowed to invest part of their social security payment into private investment plans. In theory, this comes across as “fair,” but, in reality, it is dangerous. If the stock market collapses or if people lose their money by investing outside the social security system, society will have to assume costs when they are ready to retire. Individuals have any money above and beyond the 6.1% to invest on their own.