If we, as a country, decide to raise the cap on Social Security to ensure the efficacy of the...
program, then I would also like to see that high income wage earners not be taxed on more than half of their benefit.
It's just not fair to tax any income more than once.
You see your employers deduct the half that they kick in as a business expense and so that part of the contribution has not been taxed. Individual tax payers, up to a limit, are allowed to pay no tax on the Social Security. Once a senior citizen hits a certain level, then they have to pay tax on the half that was never taxed.
But after a certain level, they have to recognize that part as taxable income. At even higher amounts, those seniors who have a lot of other income, will have to start paying taxes on their contribution which was already taxed when they earned it while working.
I think that if this double taxation of that income was taken off the table, the people who are pushing for "revamping" Social Security would lose a really big reason for that change.
Look, if we are being fair about it, why should someone have to pay tax on income that was already taxed.
That's my thought for the day.
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