President Obama has promised to remove the Social Security cap. It stands at $102,000 for 2008. He will work to raise income taxes as well.
The entrepreneurs will quit. Small businesses are big employers. When the boss folds the company, many more will be unemployed.
Why will the self-employed, industrial owners stop doing what they do? Simple math.
If a small business owner makes $200,000 this year, that person's FICA/Medicare cost is $18,448. Without a Social Security cap, the cost is $30,600.
If the business owner makes $500,000, the FICA/Medicare cost now is $27,148. Without the cap, it will go to $76,500. If the entrepreneur makes $1,000,000, the expense now is $41,648. Without the cap, it will be $153,000.
The rich will be poorer and people will loose their jobs working for them.
I would ask those who envy the rich, would you rather work for a poor man?
'til later
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