Associated Press, Published August 13 2010
Proposal: Tax all income for Social Security:BISMARCK — North Dakota's Democratic U.S. Senate candidate says the Social Security tax should be paid on all wage income.
Tracy Potter says the change would solve Social Security's financial woes and help cut its tax rate.
The Social Security tax now applies to up to $106,800 of a person's annual income. The rate is 12.4 percent and is split between worker and employer.
Potter says under his proposal, higher earners would pay much more Social Security tax without getting larger benefits.
But Potter says the extra income could allow for cutting the tax rate, and he says that would help create jobs.
Republican Senate candidate John Hoeven says abolishing the cap and cutting rates wouldn't work and would put the system at risk. He says it would stifle job creation.
Copyright 2010 The Associated Press.