Thursday, September 29, 2022

Stop Taxing Social Security - Hurting Seniors

In 1983, Congress with Bipartisan support enacted legislation to tax Social Security.  The bill was actually signed by President Reagan.  Their logic was that 50% of Social Security was paid for with employer contributions.  And, since employers could deduct these contributions as a business expense, they were not taxed as part of corporate income taxes.  This problem could have easily been solved by preventing corporations from taking this deduction.  So, even if that logic were true, then why are 85% of Social Security benefits being taxed for many people.  And, why are people who choose to work past 65 - 70 penalized losing part or all of their Social Security benefits for every dollar earned.  This is very unfair since if older people are working, they are still paying into Social Security.  

If Socialist Fascists and Republicans want to help Seniors, very simple, just stop taxing Social Security benefits.  We often hear that nothing is guaranteed except death and taxes, it is time to at least take the Social Security taxes out of the picture.  Seniors will face death soon enough.  Many Seniors need this money to live on.  Don't forget, Medicare is already means tested.  The very same people being taxed on their Social Security income are also paying the highest premiums for Medicare. 

All of this is double dipping.  After someone works a lifetime, Social Security benefits should not be taxed.  Wealthy Americans still pay taxes on any other income they may have, so why not give people a break related to Social Security benefits.   The good news is that some states, like Arizona, that still have a state income tax do not tax Social Security benefits.  And obviously, states that have no income tax at all do not tax Social Security or any other income, which is why many retired people move to those states.  

It is time for the federal government to stop taxing Social Security benefits especially now that we are facing real Biden inflation of 17% or more.   Seniors need this money to live, to buy groceries, to pay for the rising cost of medical care and utilities.  Don't expect Socialist Fascists to cut these taxes, but this could be a real win for Republicans to advance.  Let's hope fairness and common sense prevail.  

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