Well, I had intended to write a piece on this, but I simply cannot do a better job than Economistmom.

Obama is proposing that the current Social Security payroll tax of 6.2% apply to wage incomes up to the current maximum of $102,000, not at all to the wage dollars earned between $102,000 and $250,000, but again for wage dollars above $250,000.
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This strikes me (and Len Burman of the Tax Policy Center) as a very messy and inefficient way to try to introduce more progressivity into the federal tax system.

The quotes are just to catch your interest. I really recommend everyone follow the link, and spend a few minutes with someone who is far better with a calculator (and explaining the numbers) than I will ever be.

Tags: Obama, Payroll Tax, Social Security