Posted on 02/13/2021 8:31:27 AM PST by Tolerance Sucks Rocks
WASHINGTON, DC, Feb 12 – “We’re not giving up on our efforts to eliminate the unfair income tax on Social Security benefits. The Senior Citizens Tax Elimination Act is being reintroduced and the Association of Mature American Citizens [AMAC] will be doing what it takes to encourage lawmakers to support the measure,” says Bob Carlstrom, president of AMAC Action, the association’s senior advocacy affiliate.
The original Social Security and tier 1 railroad retirement benefits were specifically exempted from income taxes when they were created in the mid 1930s. “After all, workers pay for them with taxes that are taken out of their paychecks to begin with. To tax retired seniors a second time is plain and simple a money grab.”
Carlstrom notes that AMAC’s founder, the late Dan Weber, was especially keen on seeing this particular piece of legislation become the law. As he put it, “Every year, millions of seniors become eligible for either Social Security or tier I railroad retirement benefits. After working for decades, being involuntarily taxed on their hard-earned income to fund these federal programs, some seniors are forced to pay income tax on the benefits they withdraw from the Social Security System. Taxing the very benefits created from taxed earnings is completely nonsensical and diminishes the retirement benefits seniors have been promised. Seniors deserve to reap the full benefits of their career-long contributions to Social Security and the Railroad Retirement Plan.”
It’s important to note that if your benefits are your only source of income, they likely will not be subject to income taxes. But, if you are working at a full time or part time job, if you have self-employment income, if you are receiving distributions from an IRA or 401k plan, or if you are collecting dividends from investments...
(Excerpt) Read more at amac.us ...
End the double taxation (first Reagan (!), then Clinton).
PING!
The first rule of Government Club is NEVER repeal a tax.
I run my own business, so I pay a double FICA tax for both the employer AND the employer ... and yet my Social Security benefits will be capped just like everyone else.
So ... cry me a river.
Sorry — that’s EMPLOYEE and employer.
They stole my Social Security via The Windfall Act. Little known where, if you work private and public you can get your pension but not Social Security. God Bless the gov’t.
I’m am for this. I don’t get social security for 26 years, but when I hear widows with 1200 dollars losing two hundred to taxes. It’s disgraceful. Having them live on 1,000 is evil!!!!!
I do too, but we will still get a pretty large check every month.
Ive already been taxed to the max thank you. But I appreciate your nice words. By the way not everyone over 55 is the enemy
The employee pays tax on 1/2 the FICA and Med contribution when that is taken out of their paycheck.
Starting in 1983, 50% of the benefit was taxed, the theory being that the employer paid the other half, and took a deduction for it at that time.
For some reason it was raised to 85% during the Clinton years. I guess the justification was that that due to inflation, the benefit paid out was more than that paid in. With the lousy return on FICA nowadays, that might not by the case so much.
One theory then was Clinton was trying to discourage older people from working by increasing tax on them - that they would retire and make room for younger workers. There is also the benefit reduction for people who collect social security at or before their full retirement age, probably for the same reason, but I’m not sure when that was put into effect.
Sanator Joe Bidens idea and legislation to begin with. They’re protesting it?
People could pay attention then we could hold on to our republic
There is no money.
It has to come from somewhere.
Complain all you want, but the only way out of this is a crash.
A very bright memorey of mine is when my late grandfather suddenly started receiving SS.
He was FURIOUS!
i pay all around. As a employee i have my paycheck raided for FicA and medicare. As a employer i pay the other portion as well. When I finally get to retire i will be taxed on my benefits as well There is no way I will recover even a fraction of the money I would have if I had been allowed to invest it rather than pay it to the government
I'm 60 and I can't argue with this. I look at 18-year-olds today and given the college costs they face, the national debt, the unfunded Social Security and Medicare liabilities coming due now and for the next few decades, and the enormous commie deep state and education cartel that seemingly run the whole country and can't be touched, I'd hardly blame them for putting a bounty on Boomers.
You run your own business? “You didn’t build that”... Barack Hussein Obama.
That is funny. I did not suddenly start receiving SS checks. I had to go in and sign on for receiving benefits.
People talk as if all retirees were just scrapping by on SS, but in fact 15% of all retirees have an income of over $100K, and 5% have over $200K.
It is actually fair easy for a retired couple to pay no income tax on an income of $60-70K, but if you’re over $100K you will pay some tax.
I am a retiree, but I agree with the younger people that are pissed that older Folk are getting what they didn’t pay for, the whole system needs to be privatized, until that point it’s just a big Ponzi scheme, if they at least kept the so-called Social Security fund isolated from regular government spending there might be something left in the pot
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