Social security advocates fear payroll taxes (the Arizona Republic)

WASHINGTON (AP) - President Barack Obama reduce payroll year tax plan would provide big savings for many workers, but makes defenders of nerve social security could jeopardize retirement plan finances.The program is part of a series of tax reductions and extended unemployment benefits 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 get a sum of $2,000 tax cut.The Government would borrow $ 112 billion to social security together. Advocates and some legislators worry that in relying on borrowed money to finance social security might require to compete with other federal programs for a few dollars, leading to security cuts.Social taxes "" should will be sacrosanct, "says Earl Pomeroy, D - Rep N.D., Chairman of the House ways and means for sociale.Lorsque Security Subcommittee you start reporting that tax rates (social security)" are negotiable, you find yourself in trouble in the long term, I think, in terms of making absolutely certain that financing right stream are secure, "Pomeroy said.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. Rate of the employer would stay unchanged.Obama administration officials say that a payroll tax reduction is an effective way to stimulate the economy by increasing wages immediately houses approximately 155 million workers. "Non-partisan Congressional Budget Office accepts and many business groups and the Republicans take charge.Ce which is out of this compromise was the idea of the feast of tax payroll, which, frankly, a large number of economists and other experts had spoken in the past two years with a lot of support in both political parties," said Larry Summers, economic adviser.The Obama, United Auto workers Chief has approved the agreement, saying: "working families probably spend the money in their local communities by creating jobs and to stimulate global growth."The payroll tax reduction is part of a larger package negotiated by legislators Obama and image to expand a table scan of Bush tax cuts expire at the end of the month age group. Some Democratic lawmakers have retreated to an opportunity plan, saying is tilted too much in favour of the tax rich.The payroll reduction would provide relief to any worker who earn a wage. It would replace making work pay tax credit of Obama, who provided modest increases in wages of workers more since two years.The payroll tax credit would more generous towards people of more than $20,000 and married couples making more than $40,000. For those who, payroll tax reduction would be less than the credit.Making to make work pay pay work, which expires at the end of the year, gives workers a 6.2 per cent of their salary, tax credit, but it is capped at $400 for individuals and $ 800 for couples. The credit is gradually for people making more than $75,000 and couples making more than $150, 000.A worker would have to make $20,000 in wages for payroll tax cut equal to $400 Making Work Pay credit tax; couples would make $40, 000.At end rich of the wage scale, workers making $106,800 - maximum wages subject to social security - tax amount would be reduced by $2,136 contributions. Spouse of the worker, who may also obtain a reduction of taxes pay up to $2,136, if he or she is at least $106, 800.The proposal requires the Department Treasury rebuild social security with other government funds, which should be empruntés.La payroll tax reduction has absolutely no effect on the solvency of social security, said White House economic adviser Jason Furman.Social Security has accumulated a Fund Trust 2.5 trillion dollars since the 1980s. But the Government has borrowed that money to pay for other programs. Department of the Treasury Board issued special obligations for social security, ensuring the money will be repaid with baby boomers retire early and strain ageing system interest.As advocates worry about reducing employee future benefits. This year, for the first time since the 1980s, social security will provide more benefits it collects in dues. Without change, the social security trust fund will be executed by 2037, according to the trustees who supervise the program.To money save money, the leaders of a commission bipartisan deficit has recently proposed a progressive increase of complete retirement, 67-69, drawing opposition from groups representing the elderly age. "This reduction in tax of 2 percent pay is the beginning of the end of the social security as we know it,"told the National Commission for the preservation of social security and Medicare, which is headed by the former Rep Barbara b. Kennelly, D-Conn.""worker contributions funded program of 75 years and that the link between contributions and benefits critical is what social security is a self-funded program."-Online: social security administration: http://www.ssa.gov/ National Committee to preserve social security and Medicare: http://www.ncpssm.org/