This is a very significant policy proposal. President Trump is supporting a position that Seniors should not pay taxes on Social Security income.
[SOURCE]
This comes on the heels of President Trump supported policy that income received from service tips should not be taxed.
Combined, both of these policies would result in massive numbers of middle-class Americans having more money in their bank accounts. The national economic benefits of these two combined policies are extremely significant and could actually offset the financial damage done by Joe Biden.
The timing of this announcement coincides with President Trump visiting Chicago.
Let’s take the $150 billion and increase the social security of those trying to survive on less than $2000 a month. And kick the bums off of ssi.
If you really want to have fun with a socialist leaning demonrat who is on social security just tell them social security should be in a single pool of money and everyone should get an equal amount. That is true equality tell them. You will find out real quick they don’t believe in that type of socialism, only what benefits them.
I think they would go for that. Already they want to eliminate the cap on wages subject to FICA, but you would still be subject to the maximum SS annuity regardless of how much you “contribute”.
It’s sad that if this is put in 1945 dollars -$24,000 in 2024 =$1,393 back then..
Based on tax returns in 1945 only one percent of US taxpayers made $5,000 or more.
Saw this in an old 1946 story in the Chicago Daily News .
It takes $17.23 today to equal a 1945 dollar ( per a chart that shows what a dollar in any past period is worth today ).
So 1945 $5,000 is about $86,000 today.
Most people don’t know that SS ALREADY compensates lower-income earners in its internal calculations, and they want to give more to “the poor” who never made much in their earning years.
You are right. I was having a conversation with one of them when the topic of S.S. came up. I get $800/month(my choice being self employed) he getting $3,000/mo. When I sarcastically said how unfair the difference was, and that I should get whatever amount from him that made us equal, he instantly became non socialist. Very interesting human behavior -_-
All of this is a distraction…
It all starts with banking and debt. Which means large cuts to budget but that is hard and fraught with blowback. So we offer the easy path – give tax cuts.
Not taxing SS does make sense though. Why send someone money to then make them pay someone to prepare tax return and then send some of it back? Just send out what they should get to begin with and skip the middleman.
And fire 88000 IRS agents
Social Security is an utterly flawed program but at least people who draw from it held jobs and paid into the system…my greater frustration, by far, is SSI, which is basically a monthly payment to people who never worked! I understand that there are people who are elderly or disabled and were/are therefore unable to be gainfully employed. I have no issues with helping them but I DO have a lot of issues with giving taxpayer money to people who could have worked during their prime earning years but didn’t, often due to “disabilities” such as massive obesity, “emotional distress” or a whole host of other non-existent factors. And I have a HUGE problem with the parents/in-laws of immigrants (especially illegals) or H1B VISA holders, who are brought into the country under our ridiculously lax “family reunification” laws collecting ANY funds, including SSI, Medicare/Medicaid! If someone so desperately wants their parents and extended family to join them in the USA, then they should be financially responsible for ALL their living expenses, for their entire lives!
BTW, I am married to the son of LEGAL immigrants and his father, who came first and had to establish himself and fill out mountains of paperwork before bringing his wife and two young children to America, signed paperwork that he would NEVER be eligible for ANY type of public assistance! My MIL came here, immediately set to learning English, passed a Driver’s License test (in English) and then got a job! It would have never occurred to either of them to demand that they be allowed to bring their parents over and have them put onto SSI or any type of welfare program as a means to supplement the family income!
SSI is also for all child under the age of 21 that were disabled all their lives. Without SSI, I would not be able to take my Autistic brother in and take care of him after my father passed.
“I understand that there are people who are elderly or disabled and were/are therefore unable to be gainfully employed. I have no issues with helping them.”
As I clearly stated, there are absolutely circumstances where SSI is appropriate and much needed and I have ZERO problem with cases such as yours…my problem is when it is used by people who could have worked, but didn’t, AND for the relatives of immigrants (legal or not) who are brought here under the umbrella of “family reunification” but who then immediately become a lifelong drain on the American taxpayers, many of whom will never see a dime of the benefits they are putting into the system!
I’m guessing they are of European descent.
Who? What is your point?
This is good policy. Bravo to PDJT for backing. Social Security was never intended to be taxed. Think about it. Billions to Ukraine, DoD can’t pass an audit, the VA Administration caught up in fraud, and more. Yet the Government wants to tax Social Security. Always the little guy, the old folks that the Government has to squeeze and squeeze. (Hey, did you sell some stuff at yard sale and make over $600? Well, let’s tax that!)
Yea – AND PDJT needs to raise the amount of reported 1099 income. $600 dollars is a joke. I made a whopping $750 working 3 elections. $250 per election. I got a 1099 and had to pay the f-ing gov $205.00 income tax on it.
So now what? I only work 2 elections? because the 14 hours I spend at the polls plus the 2 hr training means I work 1 election for the f-ing feds so they can send my $$ to Ukraine.
Thats brilliant – means I deprive my state and county of my services-good job a$$holes.
Pisses me off to no end-including taxing my SS and the 4.5% interest I make on my measly savings.
#MAGA bcz all those things above are not great.
Are your numbers accurate?
They imply a 27% marginal tax rate.
I agree with the idea that taxing an income stream that was funded in the first place (as a gov’t strategy) to force saving for retirement undercuts the entire purpose. It’s another gov’t legerdemains. Kinda like taxing SS COLA adjustments undercuts real purchasing power.
There would be less need for such gov’t behavior had they secured the funding in the first place – the entire lockbox concept. In the event, the whole strategy breaks down over the long-run as the demographic tree grows exceedingly top heavy.
SS was never intended to be a welfare/income redistribution program.
While SS numbers are shaky due to its politicization, my concern is that Medicare funding is a much more immediate threat – especially as gov’t intentionally bastardizes the whole healthcare system through inflationary policies, pharmaceutical oligopolies and policies (e.g., COVID mRNA shots) that actually increase mortality, cancer, myocardial infraction, all sorts of psychological morbiditiess, etc.
This idea should be expanded to include pensions as well.
Full disclosure, I would personally benefit from such a proposal, but have paid my unequal share for decades.
For most of us the corporations have dissolved pension plans. Mine did 2 years before retirement. Kicking me out of any possibilities for a home loan due to low income. Would have been approved otherwise with X amount coming in on a pension.
Expanded to include allll tax once you retire except sales tax and I suppose vehicle registration.
We paid income tax on it when we earned it, if I remember clearly. So it should NOT be untaxed at withdrawal.
The REAL trouble is with Medicare. HC in general is rising at 9% per year, compounded, which is unsustainable. Medicare is fee-for-service, the costliest type. All of it, plus Medicaid, etc, needs reworking. Almost ALL ofthe Medicare budget comes out of the general fund.
If we just cut out service to any illegal, it would really help. Also, Karl Denninger, genius and thinker outside-the-box, has this solution…
https://market-ticker.org/akcs-www?post=231949
Actually, Missy, your FICA (Social Security) payments are taken out pre-tax. This is why they tax them when you retire. I do support Trump’s proposal to stop taxing them however. My state doesn’t tax them already.
The SSI money was taken and used by the general Federal spending back in the 60s. Before that the SSI money was separate. Whether it is considered PRE-TAX by the Feds it is still used the same as our taxed money so in reality we should not be taxed on it.
LBJ’s Unified Budget, 1968, broke the SS lockbox, and thereafter, the surplus was borrowed out, and the “lockbox” was filled with IOUs, in the form of Special Purpose Bonds.
They are bonds that must be sold to get the $$ to pay SS beneficiaries each month.
I wonder when we get to the point the gov’t can only borrow so much money, that they will NOT sell these bonds, they’ll only sell the ones that fund the main gov’t. Seniors be damned.
The federal government has spent $6.5 trillion in general expenses that was collected via Social Security. Despite having put IOUs in the trust fund, this amount does appear in the $35 trillion debt calculation. Taking the Social. Security money was how Bill Clinton appeared to have balanced budgets.
His evil Treasury Secretary Robert Rubin, also did an extensive debt maturity manipulation to make it APPEAR that the budget was balanced, but actually INCREASED THE DEBT longterm.
Sorry, but I’m pretty sure the deductions are post tax.
Only if you overpay your part, as if you have multiple jobs, will they give you a tax credit when you file your income tax.
Now, normally, I’d figure that the interest income from your SS account could be taxed, not the principal being returned… but when I look at how much money I’ve put over the years, I could have some $3 or $4M in there…. even if they had put it into a index fund in the Wall Street Casino… so when taking into account inflation, I think I’m getting a negative return on that.
Thank God for saving/investing money in private accounts and 401Ks.
Yes!
My view as well.
Sidebar, but if you invest SS moneys once that stream begins, do you think any gains should be taxed? I could be wrong but my understanding is that SS money is not treated as real income that can be invested in, say, a traditional IRA; though I suspect many do so anyway.
Correction…not treated as Earned Income (even though it is taxed as such).
This year I had to enroll in Medicare.
It’s 177 or so per month, then because before my wife retired we made way too much money they went and added another 174 a month… that’s based on numbers from 2 years ago… OK, I could apply for a change…
But then, I was offered a job I could no refuse – no, not doing the number for Il Capo – so I took it.
So now they are taking deductions. Every month I’m paying another 400 bucks or so into Medicare.
If you count this… I’m currently paying over 700 bucks a month for Medicare…. at least I got the PPO kind so I kept all my doctors and meds..
Oh, I also got to pay for dental and vision.
To make things worse, since I’m a year too young, I will have to return all the social security payments -I decided to cash out early- because I make way over the $22K…. and if I keep working, then next year the limit will be $69K…
What a deal eh?
BTW, I started paying SS when I was 15 years old… and I’ve paid the maximum limit since ’81. Actually, there were years when I way overpaid as I had two contracts so my employers kept paying even when I was done with my share. I’d say that in my 45+ year career I’ve overpaid (and gotten credit when doing income taxes) about 20 years!
Next eliminate the federal income tax and replace it with tariffs.
My understanding that it was supposed to be a temporary tax to fund the WW I war effort. Previous to that the federal government was funded through tariffs paid by corporations importing goods to the USA.
Maybe not totally eliminate federal income tax but DEFINITELY increase tariffs. Bring industry back to the USA!!!
If totally eliminated, The Uniparty would lose their favorite whipping post, the rich man. The source of all hard evils and easy solutions.
why no totally eliminate. if you keep it even just a little bit– they will just raise and raise and raise it. CUT THE CORD. GET RID OF IT
Thats MY money I PAID INTO IT. I WANT WHAT EVEVER PITTANACE I GET BACK HOW DARE YOU!!!!
Why not totally eliminate it?
It’s been done before, after the Civil War, I believe.
Our taxes pay for government encroachment on our liberties.
Keep government as small as possible.
At that time (pre 16A) it was unconstitutional.
No; totally eliminate federal income taxes as the Founders intended – the Constitution explicitly prohibited them until Congress foolishly revised it during the Progressive Era (1913), thus removing one of the central pillars of American Representative Democracy. Leaving any part of it in our system is like leaving “just a little” feces in our drinking water. Get it out and bar the door.
Next, should be eliminate Property Taxes. Is it OUR home or not?
Agree 100%
Property Taxes , forced use of city, county services –
GOVT needs to get out of and off my property –
Without a change it’s just a matter of time till I lose my property – Fla is out of CONTROL and DeSantis is useless ass wipe –
Nashville and TN the same. MEMPHIS IS CIRCLING THE DRAIN
Illinois too!
Loathe them with a purple passion. It reduces property owners to tenants. I am certain that Klaus approves.
Go farther: no one that served in the military, and no one over 65 should pay any tax at all; property, sales, no tax at all. Shrink all gubmint by 75%, except for military and local law enforcement . FIB, ATF, and all the rest – do over with no weapons.
And, a 5% tax on derivatives sales; that is. 5+ trillion dollar market in the US alone.
no. people over 65 are not handicapped. lower taxes for all. the military and vets – fine.
Yes!! Agree 100%
Something will have to be done for seniors already on SS. Yes, it’s not sustainable, but you can’t just leave them with nothing.
Property taxes are state issue.
Not Federal.
Absolutely!
THE LESS money we can give the government the less they can spend and waste
Those are state & local taxes, not the same taxing agency.
When I was a kid, my mom taught me about property taxes, and we got to VOTE on tax proposals, could vote them down in they seemed excessive! Needed a 5/8ths majority to pass.
All changed when the “Robin Hood” funding for schools came in, we lost all choice. Every time gov’t wants more money, we have no choice.
Wanna see what the future REALLY looks like, read here. http://danielamerman.com/course/psSIXTEEN87b.html
Tariffs on India and offshoring service jobs to India is the only way to prevent the absolute carnage happening in commercial real estate and the cities
India is the worlds back office (and the worlds body shop sending millions of Indian IT and specialists) around the world. Indian universities are corrupt
India is going to be worse than China in terms of balance of trade
Tariff all of BRICs
EVERY country on earth should face heavy tariffs. America FIRST and America ONLY!
Signed,
Indian American
that works
We should be joining BRICS! What you going to do without them?
The flat tax is based solely on the money you spend, thereby encouraging savings.
Tariffs were the source of federal income pre-income tax, and we should return to that, but there’s a fly in that ointment currently. Previously we had good to export that others wanted and needed. Today, with our manufacturing done in China, and a service economy, we have little to export. President Trump would go a long way towards rectifying that by bringing manufacturing home and increasing tariffs on foreign goods to the point of punishing the exporters of American technology to the US.
Flat Tax and Tariffs!
Bring back Smoot-Hawley!
nothing is ever a temporary tax I learned that in 7th grade American History class
Income tax on all overseas remittances!
Let’s keep the income tax but apply it only to non-American citizens.
The only way to eliminate basically any tax is to either reduce gov’t programs (i.e., spending) and/or increasing the real rate of national growth (increase aggregate annual tax income by producing more).
Very fractious issues politically. Someone’s pet priorities always get gored. That’s how the pols exploit the system in the first place.
Face it, all this conversation about morphing into a socialist polity is somewhat fatuous – we’re already largely there.
The income tax was to create demand and legitimacy for the Federal Reserve notes because they could be used to pay the income tax.
Good for Trump! This should sway many senior citizen votes
If you think about it, our SS deductions are with after tax money, so why should we pay tax on our money again, particularly on a negative return?
Exactly TE! Double taxed and the government still mismanages it.
Go POTUS Trump!
Double taxation without representation??
Sq that de facto reality is a true statement. And like the first time that was stated, we the people are rising up in a bloodless strategy for 2024.
I am encouraged that people are and continue to get involved in the Trump 47/Protect The Vote efforts. POTUS Trump spoke to the participants last night.
We have representation, but they’re feckless poltroons!
They are quite responsive to their Globalist masters.
But that is our fault. We need to pay attention to who we are voting for at ALL levels, not just the Presidential elections.
the usg will be upset that you don’t approve of their ponzi.
Bingo!
I recall one of our Treepers suggested this a couple of weeks ago.
I did and at least one other person.
Trump looks like a political genius, by just being a fair, good person and a Great American.
And Very Stable.
YES!!! M’man!!! 🙏👍🏻🏆❤️
That’s great, but I hope he follows through on another comment he made years ago… getting rid of Daylight Savings Time.
I don’t care what it is, I just hate changing and it takes me months to adapt. It was easier when I was younger.
I still don’t understand what that was ever supposed to accomplish.
I seem to recall talk about saving the lives of schoolchildren who wouldn’t have to wait for the bus in the dark, it could be dangerous. IIRC.
Daylight savings time was to preserve candles. Ben Franklin came up with it. Children waiting for the bus in the dark is the typical argument against it.
I thought it had to do with harvesting?
No it has nothing to do with farming. Believe me, I know farmers get up at sunrise and come in at sunset!
https://www.usda.gov/media/press-releases/2024/07/29/usda-proposes-new-policy-reduce-salmonella-raw-poultry-products
Speaking of Farmers..new USDA proposal appears highly restrictive for poultry producers. Last paragraph is very political under the Biden-Harris Administration bla bla. Eat the bugs and diversity
I was told that it was to give more sun-light to workers after work so they could BBQ in the evenings. ie. Commercial interests.
No matter what … the farm kids are still going to school in the dark!
energy crisis
Benjamin Franklin came up with it. It was to preserve candles.
MfM: I agree with you. I used to actually like the time change, especially the one that signaled summer was around the corner. But in my late 60’s now, I STILL haven’t adjusted to “springing forward” this year.
Me too!!! We have more peace without day light saving time. It is just NORMAL!
It would be much easier for us Arizonans if the rest of you guys would quit messing with your clocks.
We have to keep trying to figure out if friends/relatives/businesses have leapt ahead or fallen back and where they are now.
You travel much?
Love that picture-THAT represents President Trump.
I say yes to no tax on social security not after what Biden has done to this economy. He just throws away money like it’s a never-ending stream. Why do we pay a tax on something that we have already been taxed on?
Before 1983, SS benefits were not taxed. The law was then changed to start taxing benefits when your other income exceeded certain thresholds. See below:
IRS reminds taxpayers their Social Security benefits may be taxable | Internal Revenue Service
These thresholds have been in existence since 1983/1984 never being adjusted for inflation, are the same today. This is ludicrous as my wife, and I have had to pay income taxes on our SS benefits. It is not hard to blast through these 40+ year old amounts. In reality this is double taxation, you pay up front in payroll then you pay again if your pension and/or investments pay too much.
I heard a congressperson in the house proposed eliminating these thresholds, however, raising the income contribution limit. I don’t know if that would be part of PDJT’s proposal.
Treasury’s underlying rationale in 1935 for not taxing Social Security benefits was that the benefits under the Act could be considered as “gratuities,” and since gifts or gratuities were not generally taxable, Social Security benefits were not taxable.
Benefits are funded from three sources: the employee’s payroll tax, the employer’s matching payroll tax, and interest earned by the Trust Funds. Only one part of this funding could be said to have been directly paid by the beneficiary. Also, technically speaking, benefits are computed based on the workers’ earnings, not on the amount of taxes they pay.
If a rigorous effort is made to identify how much of the average beneficiary’s benefit was directly paid for by the beneficiary, the general answer is about 15%. Or to say it the other way, about 85% of the average Social Security benefit represents an amount in excess of that contributed to the program by the average worker.
Source: https://www.ssa.gov/history/taxationofbenefits.html
A good response was written by the “thedoc00”, third entry below. SS has become many things it was never intended to be originally. My main contention is that the thresholds have never been adjusted for inflation. Back in 1984 I didn’t even earn 32k in my profession until 2 years later.
The real issue would be to eliminate SOCIAL Security completely.
Obviously it’s a Ponzi and that will eventually happen, whether by our total collapse or by the government someday … but President Trump has promised not to do that. So he won’t.
sorry, paid into the Ponzi scheme for most of my life. Selfishly, I want some of my money back. Sorry………
First Social Security was NEVER MEANT to be a primary source of retirement. It was meant to augment pensions and savings … citizens and legal residents were responsible to plan and save for their retirement. Heck I did. Government Welfare programs are another issue.
Also, I will state this clearly … Social Security would be in great shape NOW if the Congress and Federal Government had not made major politically motivated rules to draw money out of the Social Security Fund that were NOT in the original legislation.
For starters … There was no such thing as Social Security Disability payments. During our 1st visit to the Social Security Office in McKinney, TX … we were the only retirees in the building … the rest were young people applying for SS Disability and SSI.
Then there is SSI whereby the Social Security fund is used to make up income for those who are unable to make a living due to some social disadvantage … language, education, cultural, etc. this is the favored route used to pay illegals money out of the Social Security Fund.
Then there is Congress, who combined Social Security and Medicare funds, making that single fund part of the General Federal Fund. They then authorized themselves the ability to “borrow” excess funds. Those “loans” were repaid by Government Bonds that pay allot less that historical market rates of return.
Hate to say it but cost of living adjustments and spousal top off to the 50% level of the higher earner were never part of the original legislation. Although, if the other drains on funds were not present and given a historical 7-10% return on on investments, given a sub-par market … actuaries would have been able to account for allot of this drain on funds. Yet, the fact remains … these draws were NOT part of Social Security in the beginning.
Then there were events like Obama sucking funds out of the Combined Social Security and Medicare Fund to fund Obamacare.
It is a myth that Social Security was originally structured as a “ponzi” scheme. As originally structured the size of the working population contributing at any point in time would equal the size population drawing money later if one removes ALL the other draws that were originally NOT part of Social Security. The fund actuaries could have easily maintained and even grown the fund with low to low-medium risk investments.
ALL the additional social justice uses of Social Security and Medicare should be lumped under Government Welfare Programs of some type … a topic for another discussion. The political fallout of the size and use of that Government Welfare effort would be interesting to estimate … especially when illegals are added to the equation.
The actuaries of the combined Social Security and Medicare Fund are in a 100% loosing battle to sustain them and the fact that US Federal Tax dollars are now needed means these funds could essentially be considered underwater.
One of the reasons I love the Treehouse. Honest explanations to better understand complicated issues. Thanks Doc.
Pray and help others
So, the disabled are crap out of luck, and wouldnt be able to collect from a benefit that they payed into, in order for the original payers into social security can be made whole? Even though, the payers into their social security, probably started paying into social security after the laws were changed, establishing the 4 separate trust funds that make up the current program. Sounds unfair and not civil.
For disclosure, I am disabled, but not on social security disability, because I lost my vesting when I worked self employed on a cattle ranch. If I was vested, I would be sure collecting the benefits that I would be entitled too.
They have expanded disability to every Tom, Dick, and Harry who would not work in a pie factory.
If a person has a disability that substantially limits one or more major life activities, has not changed since the start of the Civil Rights laws towards a person with a disability.
I’m sure working in a pie factory, for eight hours a day, would even be a challenge for half of the able bodied population, anyways.
When I went in to sign up for SS, the waiting room was full, I was the only senior. I asked the clerk about who all those other people were, she pursed her lips and said “disability”. She was not happy.
I am ok with income assistance for the disabled.
I am not ok with massive amounts of disability fraud.
Of the many persons collecting SSI disability I have observed, most were frauds (not all).
Illegal aliens jump on SSI. Legal Aliens newly arrived jump on. Small children (parents) with “learning disabilities”, ect…
“Then there is SSI whereby the Social Security fund is used to make up income for those who are unable to make a living due to some social disadvantage … language, education, cultural, etc. this is the favored route used to pay illegals money out of the Social Security Fund.”
EXACTLY!! Every “immigrant” (legal or illegal) that brings their parents/in-laws, spouses, siblings, etc then gets them signed up for SSI/Medicaid/Medicare and WE pick up the tab! I saw this first hand when I worked in banking. I remember one specific customer who came here from SE Asia and got a job at Boeing. He then brought his wife and kids, and ALL four of the parents, who each immediately started collecting around $1000 per month in SSI. (This was in the early 90s so that was a LOT of money!) None of them spoke a word of English but they didn’t need to – he would come in on the first of every month with all four, with nothing more than a green card, and demand cash for all their checks. I was young, newly married, and working full time and I didn’t make that much! I am sure its gotten significantly worse since then….
The truth is that greedy govt can’t keep its hands off a pool of money! All those “trust funds” have been raided, and then filled with IOUs. Disgusting.
I paid several thousand dollars in Federal income taxes on my social security income. The government giveth and the government taketh away. Great idea!
That would be a relief for so many retired living close to poverty. Hope he also fires Biden’s tax police harassing the middle class.
Oh my! Then the enemedia would print this . “83,000 JOBS LOST ON DAY ONE OF TRUMP PRESIDENCY”
That’s about 1/10 of those who should lose their “jobs” since many don’t really work!
As an old person, I officially support this proposal.
Speaking of taxes, can somebody tell me why the States all have different amounts of money for “the gasoline tax?”
The gas tax is very high in New England, therefore we pay a lot more to heat our homes and fill our car with petrol than many States, except for CA, which their rate is obscene.
Um…federalism?
Each state sets its own fuel tax rate.
The federal tax rate is the same across all states.
Because both the feds and the states each impose their own tax.
Each state adds a different amount onto the baseline federal excise tax on gasoline of 18.4 cents per gallon and 24.4 cents per gallon for diesel fuel.
There’s a federal gas tax (which has been raided, and then a state tax. You pay both.
Cut SS taxes.
Eliminate paternalism.
Eliminate capital gains taxes.
Eliminate property taxes.
Cut income taxes.
Tax religious organizations.
Establish a flat tax.
No flat tax. No taxes for anyone that served in military, and none for people over 65.
Who started taxing SS eh?
Yeah, I got 40 quarters in before that happened so switched gears to take advantage of the business tax loopholes under Reagan. Even back then we were talking about SS being time limited. I figured why contribute if it’s gonna die. Hence I get the minimum for my age group. No complaints. None at all.
Last time I paid for health insurance was a decade ago and it was five grand a year. Now Medicare is a couple grand a year and the state pays the premium. No complaints 👍
I hope they raise the threshold or eliminate the tax. I doubt it’ll happen but hope I’m wrong about that.
Ah the state doesn’t pay my Medicare premium – it is deducted directly from my social security benefit. So I am paying for my Medicare premium.
…but the illegal aliens get free tax payer funded medical insurance, supplemental income, food funds, and housing. You didn’t think there would be anything left for actual citizens did you?
Most people do.
Taxing 50% of Social Security benefits was the key recommendation of the 1979 Advisory Council led by Alan Greenspan.
He just won the election that is huge I pay on 85%
Thomas Massie!
🇺🇸 🇺🇸 🇺🇸 🇺🇸 🇺🇸 🇺🇸 👏 👏 👏 👏 👏 👏
How ’bout the Fair Tax?
“fair” and “tax” should never be used in the same sentence.
That would go against the Uniparty’s concept of “equity.”
By establishing a fair tax, that is a true definition of equality, and we can’t have that.
How is fair defined?
It’s uch better to tax at the point of consumption, not at the point of production. That means that the period between when it’s earned and spent can be invested. Much better.
How can you confiscate earnings as a tax and then return those earnings as income and tax it again?
I think a cool discussion would be how many times the sweat off our brow is taxed; the same sweat. It’s breathtaking following it through life and death.
No wonder the Founders had themselves a Revolutionary War. 👍
The same way you call the tax refund (for overpayment) income for the next year.
SS is designed so that you die long before you come anywhere close to getting back what you paid in.
AKA….a ponzi scheme!
One of the reasons I can not retire from my back-breaking job is because my pitiful wages pay much of my husband’s taxes for his Social Security retirement benefits.
41 states already do not tax Social Security. So, that offer is a nothing burger.
Next best thing would be to find a way to remove the school tax from senior/over 65 homeowners property.
In GA, the school tax is 1/2 to 2/3s of the bill. The county sets the valuation/appraisal on the property and most of them have gone up every year. On top of that, the school board has raised their millage rate. So, the schools get a raise no matter what.
Also, why should businesses have to pay school tax? They don’t use the schools and their employees pay school tax on their own homes. Seems like extortion to me.
But they may have to file federal taxes?
It is a very big deal as President Trump is speaking to the Federal Income Tax on SS income; the proposal has no effect on the States.
The individual States make their own rules as to whether to tax SS income or not.
Up to 85% of SS income CAN be taxable depending upon the types and amounts of other taxable income.
I am a professional tax preparer. Many of my senior clients have multiple sources of income (such as still working and earning wages), and those wages that the senior earns in order to supplement SS and other sources of income very often causes the senior to have a tax liability or an additional tax liability that said senior would not have had if SS income was not taxed.
Many have expressed shock that they have a balance due (as many are never informed of how wages and other income can affect whether or not they will owe tax), and complain bitterly about the unfairness of it all, as I explain how it works and why there is a balance due.
It is outrageous that SS income is taxed.
You brought up a great example of
why it is important for people to
become involved in City,County and
State politics.
Property, school…even amount of
tax on groceries,etc. is determined
by City, County and State government.
I’m not sure if this will mean more money in bank accounts, but it probably would mean more older people could stay in their own homes.
We’re somewhere between lower middle class to lower class in an old urban home, and our property taxes are over $5000 a year. That’s a heck of a hit coming right after Christmas for a couple on SS.
God please let Trump get this done!
I’m 66, married and we’re retired with investments and receiving SS. We derive the majority of our retirement income off the investments of the past 35 years and for us, SS is extra. We do a lot of volunteer work which means we’re constantly getting into our pockets to make stuff happen. In effect, that’s where our SS bucks flow to. We have two sons who are >95% awake, <5% woke (unavoidable), working their tails off and are going to be fine, except for the ability to afford the projected taxes required to pay for the pretending of years gone by.
We should be paying tax on our investment withdrawals because they were made pre-tax. That’s fair. What’s not fair is forcing me to pay taxes on an “investment” that I had no choice in or control over. If SS payments were subtracted from the taxable total, we’d probably give it all away for fun. What’s also not fair is the burden being transferred to our successors. This next administration is our last shot at making things fair again.
I have never seen a Brinks truck at a funeral. You are doing good deeds.
I’m afraid that the number of recipients of gov’t largess are too numerous and too vocal for our taxes to be “fair” ever again.
Another thing: if an individual takes social security before full retirement age, there is a limit you can make before SS takes part of the amount you make above that limit. I am all for what a person is taxed for what they make, but to limit what you can make when you’re on SS is like being punished. The money you make is still taxed, and being put back into the system. They should take away the limit before full retirement age and tax it like it normally is.
Completely agree regarding the limit on earnings before full retirement age. It is another ridiculous measure that seems to have no logic to it as well as fosters a disincentive to work beyond an earnings limit.
As you note, the money is still taxed – to include SS/Med Withholding and so, greater earnings = more Federal and SS/Medicare tax withheld going towards the “pot”.
The formula is SS withholds $1 for every $2 of earnings over the limit. For 2024, the earnings limit is $22,320. I agree, this too should be done away with, or at the least the earnings limits should be substantially raised to reflect the current reality.
From my understanding, that dollar of every two that is taken away goes towards the benefit calculation once you reach full retirement age, so you do get it back but over time.
I’ve had clients (I prepare taxes) in which the SS tax statement displays the total benefit, less Medicare, less “earnings adjustments”, and a net of virtually a few dollars that the taxpayer actually received due to the extent the limit was exceeded.
It is ludicrous.
On January 1, 2025, Social security will only pay a surviving spouse who was born after 1/1/1954, 3/4 of their deceased higher-earner spouse’s social security, minus all the earnings in the formula for dates you started receiving it, etc., instead of the TOTAL amount of the higher earner’s salary minus the formula. This formula for total amount of spouse’s income was a law that sunsets this year. They will cut social security benefits by 25% for these people who didn’t turn 70 before 1/1/24. I hope they address this law and not let it sunset. Don’t let them tell you they are not cutting social security for the elderly.
Social security also pays the higher spousal amount to a person who has divorced, after 10 years of marriage, but when the person reaches retirement age.
That, too, will change to the new formula.
Plus NO ONE should get SS that didn’t pay into it for a certain amount of time. These illegals coming into our country that are disabled-they get SS disability and if over 65 can apply for SS. I am not sure about how it works but this should not be allowed.
It is insane- Cloward Piven in action.
That is B.S. and should be illegal. After I fell at work, I went to social security and was denied, because they told me that I was not vested for disability benefits, because of time lapses in recent employment.
Late to the discussion but really outstanding. Nothing
quite as debilitating than paying taxes for years then being taxed on . Their excuse is because you must be rich. 😀
Guess who introduced the bill to tax Social Security benefits in the first place?
None other than Joseph Robinette BIDEN.
Figures
Trump certainly knew this when he made the suggestion. Get people wondering how those benefits started getting taxed to begin with, get people to look it up, and get people to see who it was.
The Beatles?
Right now it’s being drowned out by the Kamala isn’t black issue.
CNN is covering up all over the place while newspaper articles, videos of interviews with Harris show her proudly calling herself an Indian-American, discussing her Indian culture with the interviewers. She never mentions that she is a bi-racial person in these interviews either. Nope.
A birth certificate has been posted as well. Caucasian.
Even the video of Herself flogging Defund the Police (I think it was that one) reveals her as quite a bit, er, paler than she is today.
Maybe Biden will say: “If you have to wear bronzer, You Ain’t Black.”
Loss of SS tax receipts should be offset by a new tax on remittance to foreign countries. Illegal aliens are sending huge sums out of the country to support others back home – a direct drain of wealth from this country. Western Union and other wire transfer companies would be responsible for withholding the funds, much like sales tax. These taxes might be offered as a deduction on an individual’s income tax return, but the alien would have to FILE in order to get the deduction.
FairTax.org, Trump is getting closer to it.
A retirement benefit should not be considered Earned Income, regardless of it’s origination.
The SOBs in Con-gress have been having it both was for decades while the middleclass and poor have been shafted.
Every SS recipient should vote for Trump, for this alone!! Why not throw in everyone over 70 shouldn’t have to pay taxers on retirement IRA’s, or State, Federal, or Local Government retirement payments.
The Generations that covers help build American to what is was before Joe Biden and Camila took office in 2021.
Good. Next get rid of the Required Minimum Distribution.
I am retired in SC and the state does not tax SSI and it is a help. Since we paid in SSI funds forever to the government they have had the money and the Feds should not tax us for using the money they have held. Trump is right. The best thing would be eliminating SSI and putting it into Roth IRAs, but that would take the money from the US Federal Government and they will never do it.
Add to that, No income tax on military pensions.
Thank you President Trump from me and my fellow boomers.
I have always found it ludicrous that Social Security is taxed! Let’s see…. the government spends Billions collecting the tax THEN….. it spends Billions distributing the payments….. then it spends Billions collecting the tax. For every dollar the government takes in and “washes” the funds so only 40% of every dollar collected makes it to the US citizens it is intended for!
Isn’t it double taxation? Didn’t we already pay taxes on Social Insecurity while earning a living?
Will it ever be possible to get all the SSDI free loaders and illegals off of SS and Medicare and Medicaid? There is the main problem – Obama/ Biden turned SS into a welfare program.
From No Tax on SS to No Tax on Tips to shrinking the Fed govt to onshoring jobs, it’s like a fairer New Deal for the working classes of America.
And PDJT already has my vote. He just keeps making things better because it is the right thing to do!