Obama Calls for Taxing More Income for Social Security Fix

Barack Obama called for raising the cap on income eligible for Social Security taxes from its present level of $97,500.00. He came out in favor of raising the income cap as opposed to either raising the retirement age or cutting back on benefits.

What would be interesting would be if the Democrats called for treating all income the same, thus ending the advantage that unearned income has over earned income while lowering the tax rates, and abolishing the cap, but lowering the Social Security tax rate. In other words make more income subject to taxation, but at lower rates. While we are at it, we could also raise the personal and dependent exemption so that less income of working families is taxed. Now that would be a more progressive system of taxation.