[427sharpe]

Currently, the SS tax is 6.2% on the first $106,800 of income and 1.45% on all income thrown on for good measure. As we have already decided to make Social Security income taxable at either 50% (MAGI floors of 25/34k for individuals/MFJ) or 85%( for 32/44 for Ind/Married filing jointly), the way they intend to pull it out is pretty clear. OAISD taxes will become uniform (no upper limit), and the rate will rise to between 8 and 10%, + the 1.45%, and the current system will be scrapped in favor of a 'progressive' system much like the current general tax code. I would expect that the allowable exclusions will tighten considerably (especially foreign investment income and the 'tax-free' status of many bonds) and taxation on the SS benefit tax will begin at about $15,000 of income. This will raise revenues while cutting expenditures. Very bad signs for anyone close to retirement now, I would say.