Donut hole. What an incredibly wrong idea. My figures indicates that the top 1% of Americans make about 20% of the gross taxable income and pay about 40% of the income taxes. The top 5% pays the next 20% of the taxes. Obama's plan would probably increase Social Security revenues by about a third (shooting from the hip--I'm guessing that the "donut hole" will cover most of that top 5% but not the top 1%, and that the top 5% makes about 40% of the gross income) which would solve the problem for the short term but do nothing for the long term. His idea of automatic savings accounts is a good one--Obama's concern is with a certain class of people who will save only if it's the "default" option and spend if that's the default, and that's legitimate--but for no discernible reason he then bashes privatizing Social Security. The "donut hole" provides a one-time boost to Social Security revenues but does nothing about the huge future growth. The ONLY acceptable reason I can think of for enacting a donut hole would be to ease the transition to a sustainable, savings-based Social Security system that grows with the economy. That is to say, funding privatization of Social Security. I have definite mixed feelings about complex tax laws and the very idea of a "donut hole," as well as the wisdom of another 7.5% tax hike on the top 1% (high taxes on a narrow base is fragile), but if he were planning something other than a short-term fix I would at least hear him out, but on this issue Obama doesn't have anything to say. Shallow thinking.
"The presentation or 'gift' of the Holy Ghost simply confers upon a man the right to receive at any time, when he is worthy of it and desires it, the power and light of truth of the Holy Ghost, although he may often be left to his own spirit and judgment." --Joseph F. Smith (manual, p. 69)
Be pretty if you are,
Be witty if you can,
But be cheerful if it kills you.