Welfare State (Obama's Tax Plan)(Transcript and Video)

Note that FoxNews states this is an automated transcript, so it has errors, but it gets the key points. You can also watch the video.

Andrew Biggs

Social Security is going broke and Obama wants to reduce the number of people paying into it, and have those who pay income taxes pay even more to provide retirement to others.

Welfare State (Obama’s Tax Plan)(Transcript and Video)

Andrew Biggs has spent years working on Social Security issues and is currently with American enterprise institute the morning team under. Good morning good spirits are so here’s what I mean just in and you are a former Social Security Administration official. See you really understand the whole idea of this tax plan. Can you break it down for us with regard to”…

Play from 0:56[0:56] …” Well senator Obama’s tax plan is very confusing for typical people I think a part of that is deliberate. In essence so here’s what’s going on. Senator Obama wants to reduce Social Security payroll taxes for low income people. So a lot of them wouldn’t be paying very much into the system anymore so when we pain nothing and Social Security. But he still continue to paid in full benefits at retirement. So this is an essence a transfer to people. This plan would cost around 700 billion dollars over the next ten years and to pay for — increase income taxes on higher income people. Says it would really be big changes how Social Security has always functioned. The system was set up a president Roosevelt hasn’t earned the benefit not as a welfare program you only pay benefits to people retirement. Who paid full taxes while they’re working. Senator Obama wants to change in essence he wants to pay benefits or retirement to people who didn’t pay the full payroll tax and”…

Play from 2:16[2:16] …” throughout Social Security history they’ve never used income taxes to fund the system. What senator Obama’s doing through a little bit of and shifting around in book TV contracts. Is essentially cutting the payroll tax for low income”…

Play from 2:48[2:48] …” One of the issues that’s is that senator Obama’s plan to set up in such a way that typical person would never understand what’s going on. He just thinks it refundable tax credits and things like that the most people really won’t get. But it really is a big change in how we be doing this if so obscure over funded. If it had extra money that I can understand cutting taxes for people who who — Social Security weren’t too generous to low income people can understand that too. Social Security’s going broke and it’s already a generous benefits to low income people. It’s not clear exactly why don’t need to cut payroll taxes for lower earners and increase on higher I have not an economist and — one of the people they don’t — they — details of this and I essentially essentially it is re distributing wealth of — somebody’s money and then. He tells them they have to pay as much so they can hold on to the other person’s mind so essentially they’ve taken the 5% and give it to the 95%. This is all part and parcel of senator Obama’s general philosophy redistribution. We take money from some people give it the other people and he’s the middleman who decides who gets what. Americans are not opposed to giving them money to other people but they like to do through charity work very charitable people. Americans get a little upset when the — taken from him to give to somebody else was with Senator Obama making decisions on who gets what. Thank goodness we found somebody who used to work for the so