They might quit taxing Social Security!

[TexasBushwhacker]

https://finance.yahoo.com/news/bill-eliminate-taxes-social-security-204450893.html

"A bill currently floating on Capital Hill, though, would make it so that the federal government takes no money from Social Security payments.The proposal is from Rep. Angie Craig (D.-Minn.) and is known as the You Earned It, You Keep It Act.

Social Security is a promise wehave made to the American people - if you work hard and play by the rules, the dignity of a secure retirement will be within your reach," Craig said in a statement.

To make up for the lost revenue, Craig is proposing raising the cap on Social Security payroll taxes from $147,000 to $250,000."

[JustAnotherGen]

1. I agree with this!

I don't think my mother should be paying taxes on her SS. It's taxing something that she already paid for.


And if you dig through DU - you will see where I've been a huge proponent of lifting the SS payroll tax . . . and it will indeed impact me!

[jimfields33]

3. I agree. It's a travesty that it's faxed and definitely raise the cap

I’d rather up to 400K.

[TexasBushwhacker]

18. I like the idea of an untaxed "window"

Raise the current cap to $150K, then leave an untaxed window between $150K and $400K (for example) then make all wages (including bonuses and golden parachutes) above $400K subject to payroll taxes. That way the people who are really hit are the 1%, not the upper middle class. Then that window can be adjusted, bigger or smaller, as needed. It's income inequality and the shrinking middle class that's been hitting Social Security over the last 40 years.

[G2theD]

20. It's a percentage of your income. Why shouldn't everyone pay it?

[TexasBushwhacker]

52. Because, traditionally, the goal has been to capture payroll tax

on 90% of all wages. By leaving an untaxed window that can be adjusted as needed, rather than a flat rate for everyone, that window can be adjusted bigger or smaller to hit that 90% target.

Keep in mind, people who earn more, but aren't "wealthy" usually complain that their SS payments should be bigger. I'm not sure we want to give SS payments without a ceiling. Just my $.02.

[G2theD]

67. I guess I don't see why not. Just my thought.

If the “trust fund” gets too large, save it for the future or give more benefits.

If the percentage is the same, what’s the big deal?

Personally, I would be ecstatic if they just stopped taxing it. Seems ridiculous to give you money that you are entitled to and then making you pay taxes on it.

[Trueblue Texan]

111. Because we already paid for it...

...and when you're old enough for Social Security, your ability to earn is typically greatly compromised. My hubby and I are heading into that financial territory now in our mid sixties. We are very concerned about making ends meet with Social Security and our retirement savings. We live modestly, but we know how life can serve up household, automobile, and medical expenses that gouge a deep hole in your savings. We have always been careful with money and tried to plan, but we all know life can be full of unpleasant financial surprises.

[Trueblue Texan]

113. According to the OP, the proposal applies to raising the cap on payroll taxes...

...doesn't have anything to do with income level of those receiving benefits:

"To make up for the lost revenue, Craig is proposing raising the cap on Social Security payroll taxes from $147,000 to $250,000."

[G2theD]

124. What do you mean?

I just said everyone should pay the same percentage, i.e. remove the earnings cap. That has nothing to do with receiving benefits.

[Trueblue Texan]

127. Not specifically answering you...

..but it seemed. Several here were concerned that people at a certain income level would no longer receive SS benefits. But I don’t think the proposal has anything to do with receiving benefits. According to theOP, the proposal is to cap the income limit at which wage earners stop paying for Social Security. For example, the law once was, once you’d earned and paid SS taxes on $114,000 income in a single year, you would not have to pay anymore SS tax that year. So as I understand the OP, that earnings cap will be increased to offset the loss in revenue from terminating income tax on SS benefit income.

Sorry if I responded to the wrong person.

[G2theD]

128. Thanks

Maybe they were confused. If they could stop taxing it that would be great.

I guess my question was why not remove the cap completely? Everyone pays the same percentage.

They keep saying it’s going to run out of money for future beneficiaries so why not start beefing up the pot now?

[homegirl]

28. BRAVO!

A++++

[JustAnotherGen]

77. That's a fair point

Last edited Thu Sep 1, 2022, 09:33 AM - Edit history (1)

I could see many of my neighbors who are hit extremely hard by the SALT Cap losing their minds that if they take a job an extra 20 miles away to offset the hit on their income the SALT Cap caused -

And that job raised them up 15K . . . They would never catch a break.

Note to anyone reading -

Family of 4 in NJ making $100K to $150K is not 'rich'.

Their small cape code home mortgage is like $2,300 a month, and property taxes anywhere from 8K to 13K in my town. State Income tax is probably about 7K. So their taxes went up radically in 2017 thanks to the GOP Tax Scam.

[PoindexterOglethorpe]

103. Uhhh, mortgage on a $100k to $150k is $23,000 a month?

I bet you meant $2300/month.

Whenever I see anything about income, such as your example of $100k to $150k, I always want to know what the monthly take-home is, because that's the amount that matters. People are having state and federal income taxes deducted, plus FICA, plus perhaps money to a 401k, maybe some other things. What is actually deposited in the checking account each pay period is what they make and live on.

[JustAnotherGen]

115. Yes - 2300

I will correct!

[JustAnotherGen]

116. Also - I'm using the example

Of a young couple we are friends with that live down the street.

He's a borough public works employee and she is paralegal/licensed daycare out of their home. Both turned 30 this year. Two kids - saved for 7 years the paralegal income to put a down payment on their house.


With all that you mentioned - that's not a lot coming home every month. The one advantage we have in our Borough is that property taxes cover garbage and recycling.

[Trueblue Texan]

112. I guess I misunderstood the cap on social security...

I thought the cap the OP mentioned was the cap on income for paying INTO Social security. I know I was shocked one year to receive a refund from social security because my husband's company continued to take out social security from his pay after he reached a certain level of income. I was actually surprised the income level was so low where they stopped taking it out...I think it was like $114,000 or $110,000. I think as long as you're working you should pay into social security. I don't think there should necessarily be a cap on income that keeps you from drawing social security--after all, if you paid into it, you should get something back for it.

[JustAnotherGen]

117. Last year it was

$137,500.

The easiest thing we could do is lift that income cap - and then the money is there to give our seniors a raise, and ensure that my generation (X) has what we paid into it - being paid out when we retire . . . and for other generations to come.

[ProfessorGAC]

23. Why A Limit At All?

Sincere question, as we obviously agree that the cap is ridiculously low.
I can't really see what economic benefit is derived by capping it, because if companies see lower profits, they'll slow wage growth at those higher compensation level.
I like your $400k as a compromise but I'd need a pretty good reason to not just eliminate the cap.
I was above the SS max for the last 25 years of my career. I was not getting upper class money, just quite comfortable with no money worries. I never understood why it was capped, even as I was not paying on the extra money. It was to my benefit, & I still didn't get how my paying on that extra really caused me harm.
The benefit is obvious, the negative, I dont see.

[inthewind21]

63. I agree

The whole "SS is going broke we need to raise the retirement age" would be eliminated forever. If some of us pay on ALL of our income, then ALL of us should.

[raising2moredems]

102. Me too!

For some reason, the rich don't think they have WAY more skin in the game than everyone else. Heck, most of them pay little to no taxes on money MOST OF THEM inherited.

[dchill]

68. Because we must protect the incredibly rich.

If they have to pay their fair share, it will make them grouchy and hard to get along with.

[peppertree]

74. +1

Worst of all, they like to threaten people with 'tanking the market' if they don't get their way.

The same way they pumped up the market in '16/'17 as a 'reward' for getting their orange harlot elected.

Sadly, they do have that hostage-taking power - after all, they can short the markets anytime and make money even faster.

[ProfessorGAC]

78. I Meant A GOOD Reason!

I know where you were headed!

[dchill]

79. Pretty sure THEY think it's a REAL GOOD reason!

Their every last dollar is worth more than your life. Even the ones who seem like "real nice folks" treasure their tax breaks. I guarantee it!

[mopinko]

84. because as soon as inputs are disconnected from outputs,

it becomes a different thing, unless, of course, you want to take the top off the benefits as well.
unlimited taxes w limited bennies? you think rich ppl hate it now?

[ProfessorGAC]

89. That Doesn't Fly To Me

That would seem more like whining by people for whom that "dispari" causes no actual harm.
"Because rich people wouldn't like it" does not meet my definition of a good reason.

[mopinko]

96. well, all i know is that's what teddy kennedy taught me.

he fought this idea like it came from hitler.

[fescuerescue]

94. You can bet that there will be a big push to raise the benefit

if the cap is raised.

Folks who see an increase in their SSN contributions will naturally demand a bigger return.

[mopinko]

97. rich people arent stupid.

there's no way this flies w/o a big boost to the max.
and in the end, it wont matter. more input>more outputs.
in the end, the house will take the same cut, and it wont matter.

[grantcart]

106. Because SS is not a tax and isn't designed for wealth redistribution

Social Security is a retirement fund with contributions going to a trust fund to pay for monthly annuity payments.

The reason that there is a cap on contributions is because there is a cap on annuity payments.

Obviously we should increase the cap and provide for future automatic increases based on inflation.

$ 500k would be fine with me.

I also like Sen Warren's proposal to increase all SS recipients monthly check by $ 200 a month and to fund it by 2% yearly taxes on super rich assets.

[JustAnotherGen]

119. This is brilliant!

I also like Sen Warren's proposal to increase all SS recipients monthly check by $ 200 a month and to fund it by 2% yearly taxes on super rich asset

Our Seniors need more - especially our female seniors such as my mom - who JUST because she was a woman, made less, and therefore paid in less. As a result - she receives less.

[JustAnotherGen]

118. I think it's high cost of living states

The reality is - the SALT cap really screwed us over.

We are being punished for fully funding our public schools both locally and at the state level. Punished for funding teachers and public works pensions. Punished for expanding Medicare. Punished for making certain our local PD has resource officers/social workers on staff to make sure the people they protect and serve are protected and served -instead of a mentally ill person being shot. Our state and local taxes make certain that we can independently take care of the needs of our citizens.

This year, the cap is 147K. That little bit extra at the end of the year ensures a family can cover the costs of heating for the winter in NJ.

I've been a strong proponent of not capping SS at all. You can search my user name and see it time and again over the years.

But in light of the the GOP Tax law in 2017, which broke the 16th Amendment's promise of no double taxation -

We have to consider the middle class in my community.

I'm a County Democratic Committee member - and I live in the NJ 7th. We are still in a tight race with Tom Kean Jr (who pals around with White Supremacists and whose father is why we had the pre-disclosure clause in the Voting Rights Act). If we were to go above 400K (which aligns with the Biden Admin's no new taxes on those making $400K or less) . . . it would break the Biden promise.

[calimary]

71. Yep. Seems only fair.

[marybourg]

2. Good on both counts.

[BlueGreenLady]

4. Has Social Security always been taxed?

Seems like it wasn't in the past?? Anyone know?

[El Supremo]

7. It wasn't before 1984.

I got hit with a big unsuspected tax bill the first year I started collecting.

[BlueGreenLady]

9. Thanks to Ronald Raygun and

the trickle-downers, then.

[Delphinus]

72. I just retired

last year and got hit too because I worked two months after starting my retirement (complex story).

[El Supremo]

85. I also got hit by my capital gains.

They were more last year than in a long time. So with the SS and unexpected gains I really owed a lot to the IRS. I'm withholding more from my IRA distributions this year.

For those that find fault with this, OK. I'm sorry for those that have to rely heavily on SS.

[Midnight Writer]

41. It was a Reagan thing, to offset his tax cuts for the rich.

[True Blue American]

46. Social Security is taxed

Last edited Thu Sep 1, 2022, 10:49 AM - Edit history (1)

If you have other inclome that puts you in a higher tax bracket. The amount you can use. is ridiculously low. Has not changed. It can cost you to pay taxes on up to half of your SS.

In other words if you have saved so you have a decent income you are penalized for saving.

[Deminpenn]

110. Social security is means tested

If you get a lot of income from other sources like investments or annuity or non-social security pension, up to half your social security can be taxed.

Social security payments are also capped at something like $2800/mo.

[True Blue American]

120. I think I just posted that

In other words. If you have income from other sources, including savings interest, Annuities you can be taxed on half of your SS.

[liberal_mama]

58. We can thank Reagan for this. But at least he was able to give the rich a tax break!

[haele]

61. Reaganomics. A percentage of SSIand SSDI could be taxed based on how much other income you were gett

Even if it was investment income or someone else in your household that claimed you also had an income.
I don't know what it was then, but now, once your household taxable Federal income is over a certain amount, SSI and SSDI are added based on a sliding scale to total taxable income.
We started getting "taxed" for Laz's SSDI once he started receiving it and my taxable income was $34k that year(2003); 65% of his annual SSDI had to be included on our taxes that year to bounce our joint taxable income to $42k. That was a nasty surprise.

It just kept going up as I got pay raises and bonuses. Now, around 87% has to be added to our joint income taxes. I just have to treat it as income.

And from what I can see, it works the same with SSI until the recipient is over 65. After that, I don't know how the rules change.

All because "Compassionate Conservatives" didn't think it was fair that those "well off" elderly and disabled moochers should get away with not paying any taxes on a government benefit. Look - they can keep a roof over their heads, pay utilities, and buy food with that money that working people are giving them! They should take responsibility and "have some skin" in their future, like everyone else has to. "My pappy raised himself up by his bootstraps and became rich, why can't everyone else" whines the Trust Fund Baby...



Haele

[True Blue American]

121. This is the reason I do not worry

About spending any more.

[Recursion]

105. Reagan-Packwood-Rostenkowski Tax "Simplification"

That one omnibus was probably the most important legislative act of the 1980s, and changed basically everything about the safety net, including subjecting some SS benefits to taxation (the end result was essentially a means test, but it was done as a tax for procedural reasons).

[SoCalDavidS]

5. DOA

Filibuster

[TexasBushwhacker]

11. I dunno

Older folks skew to the GOP, but most would probably like this - A LOT! Of course, businesses won't like it because it means their payroll taxes would go up for their top earners.

He'll, I'd be fine if they just did a COLA on the amount you can earn to leave SS untamed. Currently it's $25K for singles and $32K for couples. It's never been changed and the law went into place during the Reagan administration!

[Unwind Your Mind]

26. I always harp on that cola issue too

There are some levels, I think the numbers you cite make SS 50% taxable

I know that 60k household for 2 makes it 85% taxable. That is still a very modest income where we live

[KPN]

57. Yup, I pay fed taxes on 85%.

[blueinredohio]

88. Me too!

[True Blue American]

47. Right on!

[WarGamer]

6. 100%

Now raise the cap to 500k and set a base SS benefit of 1500/mo no matter how many years you worked or what salary you earned.

[rsdsharp]

49. Your "base benefit" would see me taking a rather big hit.

What exactly do you mean by “base benefit?”

[WarGamer]

81. The base benefit is the LOWEST payment for someone who is receiving SS.

Right now, with a limited work history or low income... you can get 600-700/mo

EVERY last American who worked even a modest number of years should receive at LEAST 1500/mo

[rsdsharp]

83. I see. Thank you.

[inthewind21]

65. So

You want the entire retired population to live BELOW poverty level and homeless. Great idea!

[WarGamer]

82. see #81. I think you're misunderstanding me.

[Kaleva]

8. Those of us who live on SS don't make enough to pay tax on it

[appleannie1]

24. That is where I fit in but I don't think any senior should have to pay taxes on SS.

I sit in that sweet spot where I don't have to be taxed but make about $2000 a year more than the cut off for things like food pantries or help with utilities like heat. The local pantry gives food to one person if they live on less than $25,000 a year.

[Kaleva]

29. My wife and my combined SS puts us over the top for commodities

and such

[Tree Lady]

10. Please please please

We pay tax on SS. The amount to not pay is very low right now. With everything costing more we need all help we can get!

[LisaM]

12. This is a great proposal!

They should have raised the cap a long time ago anyway.

I hope this gets some legs.

[fescuerescue]

95. The cap get's raised every year

In fact because inflation is so out of control right now, we will likely see the biggest cap rise in history this year.

[Roland99]

13. Remove the income cap FULLY!

It's such a regressive tax!

And add on a minor amount onto Capital Gains Taxes for Social Security, too!! The top 1-2% don't earn as much from income as they do from capital gains

[moonscape]

17. This!

[Freddie]

14. Thank St. Ronnie for taxing SS

And unemployment benefits. He was all for the “little guy”, right?

[Kaleva]

30. Little guys don't pay tax on SS

They don't make enough.

[Farmer-Rick]

36. If you make more than $25,000 you pay taxes on Social Security

That's total pensions, wages and Social Security.

I get Social Security AND still pay Social Security taxes. It seems kind of stupid. I pay SS taxes and then they give it back to me.

[Kaleva]

37. We don't make more then 25k with our combined SS payment

Our individual deductions take us well below. And one is taxed on net income, not gross.

[TexasBushwhacker]

86. That's because that $25K limit was NEVER increased

It's even worse for a married couple; only $32K. I would be happy if they just bumped that limit up to account for inflation over the last 40 years. Bump it up to $70K for singles and $140K for couples.

As it is, I'm 65 and still work. I opted to take early SS because people in my family don't live that long. I put it all into savings. I get $1554 a month. $170 pays for Medicare Part B. I max out my IRA every year ($7K) so I don't end up oweing on April 15th.

[Abolishinist]

32. The vote was bi-partisan, with a higher % of Dems in the House

(75% of those who voted) voting for passage vs. R's (63% of those who voted).

The taxation of Social Security began in 1984 following passage of a set of Amendments in 1983, which were signed into law by President Reagan in April 1983. These amendments passed the Congress in 1983 on an overwhelmingly bi-partisan vote.

https://www.ssa.gov/history/InternetMyths2.html#:~:text=Q3.-,Which%20political%20party%20started%20taxing%20Social%20Security%20annuities%3F,an%20overwhelmingly%20bi%2Dpartisan%20vote.

[JT45242]

15. Get rid of the cap all together...

Seems pretty simple. Tax everyone at the same rate. Keep it solvent and don't need to tax it on the way out.

[LaMouffette]

16. This bill will also highlight the fact that Democrats PROTECT social security, whereas the Repubs

are trying to DESTROY it.

I would love to see this bill come up for a vote in October, right before the midterms! Let Americans see where the Republican politicians really stand on social security.

[TygrBright]

19. States can still tax SS income, however. That needs fixing. n/t

[ProfessorGAC]

27. Some States Have

Here in Illinois, there is no state income tax on any retirement money.
SS, pensions, IRA payments...
The only state tax we have to pay is on the 6-7 thousand from substitute teaching. But, IIRC, the first $3k of wages are untaxxed, no matter total income.
Illinois has been like this for quite some time now. I can see the benefits to other states by following suit.

[Freddie]

34. PA only taxes W2 income

Flat 3.07%. No tax on SS, UC or pensions.

[ProfessorGAC]

44. Well, That's 2!

Illinois had a sound economic reason.
Pensioners, IRA payees, and SS recipients could potentially leave the state on retirement to avoid those taxes.
These folks are often those with comfortable incomes & few financial obligations, aka disposable income.
Now, retirees leave but that's often for weather. Taxes don't add another incentive to leave & take their economic activity with them.
I'm going to guess PA did it for similar reasons.

[rsdsharp]

53. Iowa has recently adopted a law to exempt retirement income

from state taxes. It goes into affect next year, I believe.

[ProfessorGAC]

59. Good!

I think more politicians should understand that their constituents aren't like their benefactors, in that their retirement income is not in 7 or 8 digits.

[mnhtnbb]

76. 37 States plus District of Columbia do NOT tax Social Security

Here's the list:

The first nine have no income tax at all

Alaska
Florida
Nevada
New Hampshire
South Dakota
Tennessee
Texas
Washington
Wyoming

The remaining 28 states plus the District of Columbia implement various credits or exemptions to help taxpayers avoid state-level Social Security taxes. These states are:

Alabama
Arizona
Arkansas
California
Delaware
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Mississippi
New Jersey
New York
North Carolina
Ohio
Oklahoma
Oregon
Pennsylvania
South Carolina
Virginia
Wisconsin
Washington, D.C.

https://www.gobankingrates.com/retirement/social-security/states-that-dont-tax-social-security/

Of the 50 states, 13 states tax Social Security benefits. Those states are: Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Rhode Island, Utah, Vermont, and West Virginia.

[mopinko]

98. i dont know about all states, but il is based on you gti from your 1040.

[NoMoreRepugs]

21. Way overdue.

[appleannie1]

22. Just the raising the cap is a good idea.

It would guarantee that SS will go on longer than is now projected.

[KS Toronado]

25. On Biden's broadcast tomorrow night

I hope he mentions this and other things he'd like to do for the middle class, but in order for him
to do so he needs MORE DEMOCRATS in the House & Senate.

[lpbk2713]

31. Thank you Rep Craig.

Whether it passes or not, thanks for thinking of us.

[Wounded Bear]

33. Great idea! If the repubs fillibuster, it's another campaign issue...

[SunSeeker]

40. For sure! nt

[TeamProg]

35. Hope it gets signed soon! I'm a bit worried about the House control coming up. n/t

[Snarkoleptic]

38. Great news!

We need to tout the fact that taxing SS benefits was passed into law by Reagan in 1983.

https://www.ssa.gov/history/taxationofbenefits.html
Congress passed and President Reagan signed into law the 1983 Amendments. Under the '83 Amendments, up to one-half of the value of the Social Security benefit was made potentially taxable income. The specific rules adopted in 1983 were:

[SunSeeker]

39. Another great DEMOCRATIC idea!

[UGADawg]

42. Winning issue for Dems in November **

8

[aggiesal]

43. Make it $500,000, then start again at $1,000,000 ...

It's called the Donut Hole.

[AllaN01Bear]

45. id like to see em get rid of sub part 1]a b and c where it aint none of those

[JoeOtterbein]

48. K n R ! Thanks for posting! nt

[Bayard]

50. We both retired at 64

When Medicare kicked in at 65, we each lost $700 a month from SS. To tax it on top of that adds insult to injury. Kentucky does not tax SS, though.

A Democratic president instituted SS. A rethuglican one enacted taxes on it. And now, Dems are trying to un-tax it.

Dems ARE the party of regular people!

[The Jungle 1]

51. This is a good issue to push before November.

[Stinky The Clown]

54. OhPleaseOhPleaseOhPleaseOhPleaseOhPleaseOhPleaseOhPlease

[KPN]

55. Social Security should never have been taxed in the first place.

This would be a great move. It would effectively signal the end and abject failure of Reaganism by reversing one of his more prominent supposedly “transformative” accomplishments. The only economic transformation he accomplished was the near total demise is a secure and stable middle class.

Not to mention this would also be a great move politically. I would absolutely love to see this come up to a vote in the House before the upcoming election. That’s not very likely, but it will be in play and could be powerful in 2024.

[Rocknation]

56. Remove the salary cap altogether

everyone pays a lower rate, the cap on the payouts could be raised, and SocSec stays solvent forever.


Rocknation

[WA-03 Democrat]

60. K & R!!!

Democrats make good things happen

[BlueIdaho]

62. About Damn Time

to right Reagan’s wrong and give retirees every dollar they deserve.

[flying_wahini]

64. Didn't Al Gore call this "The Lock Box" ? (Referring to Medicare )

“He said his proposal to put all of the revenue from the 2.9 percent Medicare payroll tax into a separate account would prevent Congress from using the money as "a piggybank for other purposes," such as tax cuts and other spending programs.

The temptation has always been to treat Medicare the way Social Security used to be treated--as a source of money for spending or tax cuts," he said during a half-hour interview aboard his campaign plane. "And now that we have succeeded in taking Social Security off budget and using it to pay down the debt, we need to do the same thing with Medicare and put it in a lockbox."

[link:https://www.washingtonpost.com/archive/politics/2000/06/08/gore-to-propose-medicare-lockbox/bd97ce9d-93e8-4b3c-8cda-03486b330593/|


The GOP never stops trying to steal money.

[TexasBushwhacker]

66. They aren't "stealing"

The system was set up so that any excess, beyond current distributions, would be invested in the safest investment vehicles on the planet - American treasury notes. They aren't going to leave trillions of dollars in a "lock box" when that capital can be used and paid back, with a tiny bit of interest. Now, when someone like GWB goes and starts 2 wars without raising taxes, that's phenomenally stupid because the MIC is the biggest suck with NO RETURN but dead and disabled soldiers and civilians. But to use the SS excess to build infrastructure, award Pell grants, etc is an investment that pays back down the line.

[Rebl2]

69. It's way past

time that they raise the cap. Should have been done years ago.

[Hekate]

70. EXCELLENT! I never did understand why I was taxed twice, esp since for a lot of people...

… by the time they start drawing their SS, every penny counts because there’s nothing else..

I’m okay — a lot of folks aren’t.

[TexasBushwhacker]

93. Well, I think the philosophy was that because most of what you put in

was decades before you get benefits, that many people get way more in benefits than they ever paid in. Of course, if you die before receiving benefits and don't have a dependent spouse or children that get survivors benefits, you're SOL.

[Emile]

73. A democratic tax cut. I'm sure republicans will back a tax cut,

right?

[llmart]

75. I wonder how many of the future Social Security payees...

those who had yet to receive a dollar - died from Covid? That should save the government a whole hell of a lot of money! But then again, that was probably part of the GOP mindset.

I had a neighbor who died one month before he was eligible for his full benefit. He spent most of his working life working two jobs. I have heard of others like that. Also, there are people like one of my brothers who died after only receiving one year's worth of checks.

As someone who is receiving Social Security, I think this is absolutely a terrific thing for Dems to do. I have hated that I have to pay some taxes on my Social Security. Fortunately, my state doesn't tax it.

[BSdetect]

80. Need to see the effect of raising the cap as we already pay a hefty chunk

So doubling that does not appeal in the least.

Fixing inflation long term would help us all.

[El Supremo]

87. You are actually taxed twice.

While you are working you (AND your employer) are taxed on the SS premium. Then up to 50% of your benefit can be taxed.

[GreenWave]

90. make it so

It appeared in your article

and elsewhere

[link:?resize=600%2C423|

[greblach]

91. Yay!

But I don't agree with the $250k limit, should be at least twice that...

[snot]

92. Both benefits & the cap on income subject to the tax

should have been linked to CPI long ago – and I mean a version of CPI that includes the things older people need the most, such as health care.

[Grins]

99. Shit! Stop this!

Don’t raise the cap - eliminate it!!

[Cozmo]

100. If only

[GoodRaisin]

101. K&f'ingR

Like that bill. Don’t see the need for a cap at all, but it’s progress!

[PoindexterOglethorpe]

104. My taxable income is low enough that I pay

almost no federal or state income taxes. Or at least right now I don't thanks to a credit for installing solar panels. I think that might end at some point.

I also do not do my own taxes, but have a wonderful accountant who does them for me. It is well worth what he charges, because I know that he knows exactly what to do and how to do it. Oh, and he gives me a senior discount on his services.

[markodochartaigh]

107. Windfall provision

I wish that they would also get rid of the Windfall provision. People who get a pension have our Social Security benefits reduced. We worked for whatever Social Security benefits that we get, the benefits shouldn't be reduced just because we took a public sector job with a pension. The pensions in many areas aren't a whole lot. I believe that Congressman John Larson of Connecticut is working on this.

[RocRizzo55]

108. Just eliminate the cap altogether. N/T

[Crazyleftie]

109. the cap raised to only 250k??

B S

[lark]

114. Oh my God yes!!!

I really doubt anything like this could really pass with the chokehold the rich have on congress. But what a nice dream this is!!!

[Carlitos Brigante]

122. I know next to nothing about SS. But from the replies here, it sounds like a good idea and a winning

campaign issue. Let the ghouls go on record opposing this.

[TexasBushwhacker]

126. And they will oppose it

Because it will have to be funded by raising the cap, in some form or fashion, on what is subject to SS tax. That means more taxes being paid by employers for their high earners. They don't like that!

[PatrickforB]

123. I just wrote a letter to my representative in support of this wonderful legislation. n/t

[Martin68]

125. It's about fucking time.

[AS12]

129. It's about time to get rid of this!

At least the original bill wasn't created by the Senator - but he voted for it

https://www.usatoday.com/story/news/factcheck/2020/10/16/fact-check-joe-biden-okd-social-security-taxes-wants-savings-reform/5896512002/

[TexasBushwhacker]

130. To me, the biggest error was they didn't have a COLA for the income guidelines

and have never adjusted them. A senior in 1984 could live comfortably on $25K then, but the equivalent is $71K now. I'm 65. Do I wish I was making $71K? Hell yes!

The $32K guideline for married couples is even worse! Why would they think that they cost of living was so much less per person just because they were married?