The plan is part of a series of tax cuts and unemployment benefits extended m. Obama has negotiated with the Senate Republican leaders. They reduce the workers share the social security tax by close to one-third for 2011. Making $ 50,000 salary workers would receive a $ 1,000 tax cut. those who carry out a $100,000 would receive a $2,000 tax reduction.
The Government would borrow $ 112 billion to social security together.
Advocates and some legislators worry that by relying on money borrowed to finance social security might force them to compete with other federal programs for a few dollars, leading to reductions.
Social security taxes "should be held sacrosanct,", said REP Earl Pomeroy, D - N.D., Chairman of the House ways and means social security Subcommittee.
"When you start report (social security) tax rates are negotiable, you find yourself in trouble in the long term, I think, in terms of making absolutely certain financing right stream are secure,"said Pomeroy.""
Social security is funded by a 6.2% on the first $106,800 earned by an employee payroll tax. Tax is being matched by employers. All negotiated by Obama would reduce the tax paid by workers to 4.2% for 2011. Employer's rates would remain unchanged.
Obama administration officials say that a reduction in payroll tax is effective for stimulating the economy immediately increasing salary is home to approximately 155 million workers. Non-partisan Congressional Budget Office accepts and many business groups and the Republicans support.
For more info:
Social Security Administration
To preserve social security and Medicare national Committee
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