General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsWhy doesn't someone do something about the taxes on SS
income. This tax was put in back in 1983 and the threshold for taxing SS hasn't been adjusted
for inflation for 30 damn years. To start off I am single and get SS, a pension and have an IRA. My pension alone is enough that it even puts me into the double taxation bracket. I ran the numbers for just my pension and SS for this year and my taxes would be about $2000. This year I plan on withdrawing $12000 from my IRA to do some remodeling so I ran a sample tax return and it will increase my taxes by over $4200. We were told if you put money into an IRA or 401K you didn't have to pay taxes until you withdraw it and then your tax rate would be lower. That is partially true, yes the tax rate is only 15% if your AGI is under $36900 but you also have to pay taxes on your SS which makes my taxes federal and state total 35% on anything I take out of my IRA or the portion of my pension that goes over $25000 total income. First off I know that there will be the ones that say you're single you can afford to pay more, screw you. But you people that are married eventually will be in the same boat when inflation puts you in that bracket. I probably answered my own question, there aren't enough singles to have a voice in such things. Until the majority of people get hit by it nobody cares.
Warpy
(111,267 posts)Not indexing benefits or taxes is the favorite poison pill of conservatives in both parties. Yes, it's unfair, insane and cruel to too many people. Conservatives will do anything to suppress wages on the off chance they will also decrease inflation.
Never mind it's never worked, no conservative is ever capable of noticing when his dogma is wrong.
doc03
(35,340 posts)some folks thought I was a greedy sob. I worked a union job and we have a
a pension and I saved for retirement. But there were some here that thought if you got any income other than SS it should be deduced from your SS dollar for dollar. Why even have a pension or try to save for retirement?
Warpy
(111,267 posts)for them for decades. I always give them the "insurance is not a giveaway and not an investment" speech.
Then I tell them that since they had enough money to pay for repairs in their savings account, their car insurance payout will not be forthcoming.
Since they made enough to pay off a $200,000 hospital bill for that heart attack, stenting, and complications, their health insurance would not cover it.
Since their children will be eligible for survivor benefits from SS, that life insurance payment has been canceled, they don't need it.
Means testing for any defined benefit insurance plan is simply insane.
Yes, the wealthy who worked all their lives for paychecks will collect SS. So what?
My dad used to call it his welfare check (yes, he was a winger) but that welfare check made the difference between being retired and never enjoying it and managing to do a little traveling while he and my mother were young enough to enjoy it.
Means testers want to tear everybody down to below subsistence living. Join me in blasting them, they deserve it.
TransitJohn
(6,932 posts)It sucks getting punished for trying to do the right thing.
Freddie
(9,267 posts)Another example of what that asswipe did to set the country on the path to ruin.
llmart
(15,540 posts)You can thank Ronnie for that. I'm with the OP on this issue. I have a very, very small pension and my Social Security isn't that much either and I still have to pay taxes on it! What a joke! Then our stupid Michigan governor, Dickhead Snyder decided to tax pensions too.
When I was a young woman in my 20's I had a lot of empathy for seniors and so did most of my age group back then, but now that I'm a senior it seems no one fights for these things any longer. Social Security should NOT be taxable income unless it is for people who make over $200K a year.
doc03
(35,340 posts)of our SS income taxable but Bill Clinton raised it to 85%. If the threshold for
taxation would have been adjusted for inflation it would be around $60000 for a single,
that wouldn't be so bad but it has never been increased in 30 years. They manage to raise that goal for the alternative minimum tax though. Well SS is not taxable in Ohio, yet.
llmart
(15,540 posts)started the tax rule that if you made over $50K per year your IRA contribution was no longer deductible right off the top of your federal taxes.
former9thward
(32,016 posts)doc03
(35,340 posts)85% of SS taxable. Maybe this could be an issue for Democrats to run on and get the
old white peoples vote.
former9thward
(32,016 posts)They passed the law and Ronnie signed it.
doc03
(35,340 posts)if you just had a halfway decent union job you fall into that category. I remember
back in the Clinton days Rush Limbaugh made a big issue out of him raising it to 85%.