The big thing you missed in this video is the fact that taxes on Social Security should be illegal in the first place. Double taxation is illegal and that is exactly what is happening. SS recipients have already paid taxes on the wages when they were working and now when retirees desperately need this income the most to live the government gives them the shaft! Retirement may become a problem for Americans
More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.
I completely agree; I am in my mid 40s, approaching retirement, and have approximately over 2million dollars in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, the Fin-advisor can only be neglected, not rejected. Just do your due diligence to identify a fiduciary one.
@@sabastinenoah My CFA Annette Christine Conte a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market
I don’t understand how we are being taxed twice? The 7% you pay is into the fund and is essentially tax deferred… and you are drawing on that. If you live long enough, you’ll get all that back and more.
I heard there’s a few states you can move to like South Carolina and a few others where if you’re over 65 years old you don’t have to pay property tax anymore.
@Slaytheday388 not true. We live in SC. Get a homestead exemption, which means we do not pay school taxes. We are 66 yrs. The vehicle property tax makes up for that. They get ya one way or another. From Illinois. Moved here 2.5 yrs. Still cheaper than Illinois though.
@ well I guess I’m wrong then, that’s just what I heard. I live in California where they charge you double for everything. I’m sure I’ll be skating out of this state when I’m ready to retire.
Sure Mark, that would be great if all us SS would get a refund check for the money that government stole. But, that money was used for YEARS for their pet projects that’s exactly why it’s NOT there and dwindled away🤯🤬
Congress won't give AMERICAN retirees a tax break cause they have to fund billions for proxy wars , illegals, foreign entertainment like Sesame street for Iraq, the worthless DEPT of Education which simply eliminating one one these or unlisted others would save billions in tax payer money and THEN IT WOULD BE no problem to give RETIREES A TAX BREAK!
You're essentially asking to slap another penalty on high income earners. What people fail to realize is that when it comes to social security benefits the bar for high income earners keeps getting lower.
Don't know what this guy is saying - his is not the answer - his way will further delete SS-$ pool. Simpler solution is no cap on SS tax!!! --- Find Dr Ed Weir, PhD., semi-retired from SS office has many answers in his videos --- mostly closed door meetings to privatize SS & then Medicare!
I'd rather see the elimination of property tax. The myth about paying off your home is just that, a myth, property tax never goes away. It's especially hard on the elderly on Social Security when property tax is 30% or more of their income.
Not just property taxes on homes--ALL taxes---cars, boats, etc etc. Once we pay a tax when we buy it, we should never have to pay a tax again. ALSO we need to make insurance OPTIONAL, not mandatory--will make it more competitive and drive down prices
And if you're poor, you lose it back to the state in any benefits you get. A 2.5% increase causes a loss of 6% in food stamps. They can keep the COLA. It's all smoke and mirrors
@@ronhall5395 IRS still owes me a $2000 tax refund from 2019 (when Covid hit). About 2 years ago the IRS destroyed millions (yes millions) of paper tax documents from fiscal year 2019. The IRS "reasoned" that they would never get to them because they were short staffed. So they shredded them including my return. Congress did not order that. I know, it seems impossible -- a CPA told me. But look it up -- or google What happened to 2019 paper tax returns. IRS does not just do what Congress tells them. They make many administrative rules which you can find in the Code of Federal Regulations. They also place their own administrative take on statutes which are intended to govern their actions. And they often take arbitrary actions such as, as I mentioned, destroying tax documents they don't want to deal with. I don't know all the rules on tax documents, but that destruction of important and ofter irreplaceable tax documents is either illegal, or should be.
I took over my elderly parents finances. They didn’t hit the limit to have to pay taxes on their SS. Then my mother passed away and now my father as a widower is over the limit due to pension and dividend income has to pay taxes on his SS. It is insane to me that the government doesn’t index the 1980’s income limits for these taxes. Every year more and more seniors have to pay taxes on their SS. It’s ridiculous. Where is AARP and other lobbyists to help push for reform ??
The taxing of social security does not have to change. The original idea was to tax only the high earners. The 32,000 - 44,000 numbers for couples were in 1983 dollars. Update the social security worksheet to include an inflation adjustment from 1983 until the present and the problem for almost all social security recipients will be eliminated. The federal income tax is adjusted each year for inflation. Why not the social security worksheet. That would be an easier way to handle this issue.
No one should be taxed on SS benefits. High earners earned their benefits just like everyone else. Many worked more than one job, overtime, holidays, weekends, swing shift.....whatever it took to secure a comfortable retirement. They shouldn't be punished for being responsible.
Ive told this to people for years about the $44K has not changed even for inflation. According to what I can figure at 3% inflation adjustment over 39 years the $44K would be around $139K.
While it sounds great, there are concerns about how it might impact the funding for Social Security in the long run. If they eliminate those taxes, how will they fill the gap?
Exactly! It’s a double-edged sword. On the one hand, we’d save a lot of money, but on the other, I worry about the stability of the program. I mean, what happens to retirees if the funds start running dry?
That’s my concern too. It might help in the short term, but I’m thinking of how it could affect my retirement in 10-15 years. I don’t want to bank on Social Security alone and end up regretting it.
Same here. I think it’s a good time to focus on other ways to grow wealth. A good investment advisor could help you diversify and strengthen your portfolio. I’ve been working with Joseph Nick Cahill. He’s a CFA with years of experience in long-term and short-term investments. He helped me avoid costly mistakes and improved my portfolio significantly.
That’s why I recommend someone like Joseph Nick Cahill. He offers free consultations and really focuses on creating strategies to help you retire comfortably. He’s helped a lot of people hit millionaire status by avoiding common pitfalls, like over-reliance on Social Security or investing too conservatively.
The biggest problem with the SS tax is you get pentlized when pulling from your retirment account. The more you pull out the more SS is taxed. Plus they force you to take RMD's. It is like taxing you twice for the withdrawl. Why include income and pension on what is taxable on SS? Just a small pension will force you to pay SS tax.
@@Satjr35031 Some people can not live of the measly amount Social Security is. That is why they saved while they were in their working years. And for that, the government punishes them for being responsible.
How about dramatic cuts in discretionary spending before we trust politicians enough to touch social security! But eliminating Federal tax on social security is a good thing to do!
If we raised the payroll income tax cap on the rich from $160,000 to a million dollars we could RAISE the SS benefits for everyone and it would never go broke.
Why is solvency #1. Seems the American people have been brainwashed into thinking that the only line item on the federal budget that can't run a deficit is SS? Why is it we can borrow/print $250 billion to kill a million people in Ukraine but SS has to be 100% paid for from payroll taxes. It is projected after 2034 SS will have $160 billion/yr deficit. Why can't that deficit be made up from Income/Corportate taxes, monetized, borrowed..... like everything else the government does. If they want to get serious about budget cuts, why not prioritize SS as the last line item that gets cut instead of the first?
It's not fair because we have already paid tax on this money stop borrowing from it and stop giving it to people who haven't worked and supported this country
So what is going to nake up for the funding shortfall? If they eliminated the tax cap while also indexing the Social Security tax limit to inflation would make more sense - so taxation of Social Security would only occur if your annual income was over about $150k, that's when your benefits would be taxed. That makes sense to me rather than just eliminating it.
What would make up for the shortfall? How about no longer sending hundreds of billions of dollars to Ukraine, the most corrupt country in the world, to fund a war they can’t possibly win? How about that?
As a senior of course I would love no tax on SS...the problem is Trump and others have not said how they will fund SS for the long term without the tax. I think they will say anything for a vote. Also I have young adult children. I do not want to be like my "me generation" age group and only think about what's good for me only. SS needs to be stable for them too.
But the issue is that the original amount of money set was set over 30 years ago and never adjusted for inflation. If it were adjusted for inflation since 1980 that amount of income you would have to have to tax Social Security would be over $150,000 a year. Please get informed.
Under our current laws, when the “Trust Fund” runs out of money Social Security benefits will be automatically reduced to the current revenue from Social Security taxes. So if Congress does what it’s best at, which is nothing, Social Security benefits will be reduced dramatically in 9 to 10 years.
that's coming....too many young people are untrainable or unwilling to work so the are gonna need to get Boomers to pick up the slack. That, and Boomers have done a terrible job of saving.
The cap will never be removed. Why? Look at professional athletes. Your contract says you get 10 million a year. As a self employed person you would owe 1.5 million in social security taxes. Given most professional athletes don’t work 35 years their payback would be pitiful. But a giant thanks from the government .
Originally there was not tax on social security. If you had other income or pensions it was taxed but social security was not added to you income to be taxed.
A tax cut would be mistake. The reason is that it will accelerate the depletion of the social security fund, meaning that it will run out of money as early as 2033, and all benefits would have to be cut by about 18% to 21%. I could survive this but a lot of people that took benefits early are struggling to make ends meet.
tax cuts to corporations n rich cuts cuts where is the government goin to fund ssi and Medicare when there's no money. sorry guys we have to cut your checks
That’s so true. With potential cola raises the next eight years it will all be wiped out with the cuts. Hard to imagine someone with only $2,000/mo. living on that in 2033. I get taxed now and don’t mind.
They need to raise the income level when it kicks in, the levels have not changed since the law was introduced. How about married no tax until you make $160k and $120k if single, most retires would pay no tax then.
Retiring at 62 may be challenging for someone without a 401(k),, pension, or significant savings, even if they're earning a high income in their later working years. By retiring early, they risk leaving substantial earnings behind for a relatively small Social Security benefit.
I've been paying into SS for over 40 years, and I'm not waiting any longer to take it. I'm going to claim it early. Now, I'm focused on investing in myself and putting money into the stock market. Over time, I've learned that building real wealth comes from smart investments and having a financial advisor.
I agree completely. I’m 60 years old, recently retired, with about $1.95 million in non-retirement investments. I have no debt, but not much in my retirement accounts compared to the rest of my portfolio from the past few years. Honestly, you can’t ignore financial advisors, just take the time to find a good one you can trust.
@@mikegarvey17My husband and i just had a relative conversation this morning. This is exactly how we wish to get our finances coordinated ahead of retirement. Can I get access to your advisor?
*Izella Annette Anderson* is the advisr I use and I'm just putting this out here because you asked. You can Just search the name. You’d find necessary details to work with to set up an appointment.
And the General Fund is what is used to pay back those bonds. There is no special pool of money set aside to pay the bonds. When bonds are cashed in the money comes from the General Fund / General Budget.
I'm all for eliminating SS Tax, yet, like COLA, if SS tax goes away, they'll just raise rates elsewhere. As a DoD retiree, we looked forward to the new year COLA increase, and so did our health insurance costs. The government will ALWAYS find a way to get their cut.
So if your only income is from Social Security, it is already exempt from federal tax. It becomes taxed when you have additional income over a certain amount.
They should tax social security but raise the threshold at which it’s taxable. Taxing SS helps in means testing SS benefits. There is a point where the rich should be taxed because they don’t need it.
As someone who was fortunate enough to cap on SS payroll for the past 20 years. It wouldn't really hurt to continue the contributions over the set amount
Most people who receive SS don’t pay taxes because they are low income. The SS tax goes into the SS trust fund. So unless Congress acts to shore up the trust fund ( like raising the FICA cap) cutting the tax will cause the trust fund and subsequent SS reductions to be larger and come sooner. This will be devastating for those who are low income as the receive no benefit from the tax cut and yet will suffer from the benefit cut.
What’s bothering me is that I get a 2.5% increase in my monthly SS benefit. But they raised the monthly fee for Medicare by almost 30% which is taken out of my SS benefit. Why am I being taxed by Medicare? I have paid into SS and Medicare for over 45 years and now they take it out of my SS every month. That is taxing me on money that is already mine!
They shouldn't eliminate the tax, but rather go back to 1984 and index the thresholds for inflation. That way the tax will not be hitting the middle class like it is now. Also, if they want to raise the cap to help offset the cost, that's fine too, IMO.
The $32 & $44K limit for will be raised closer to approximately $70K & $90K. Over $70 & 90K will be takes at 22% or higher. Income over $150K will be taxed up to 33%. Bottom line, tax will not be eliminated completely for everyone.
It seems very key to understand whether or not the taxes we pay on SS benefits are actually placed into the Trust Fund. If Trump gets SS tax eliminated, the SS fund will deplete even sooner than 2033
@@frunkdup828 You're wrong. Taxes paid on Social Security Retirement Benefits are credited back into the trust fund. In 2023, that was about $50.7 billion with another $35 billion going back into the Medicare trust fund. Look it up!
everyone has good points on monthy tax. What is not being said is that the non taxed income will still be taxed as you file your IRS annual taxes. It put me in the 32% bracket, instead of the 22% bracket.
He lowered everyone’s taxes from a “ concept of a plan”. BTW, one of the key votes when SS was initially taxed and, a second time when the tax rate was increased was the current Vegetable ( Biden) residing in the WH.
How about no charge on Medicare part B for people over 65. They already paid to qualify for Medicare during working. Also house value property appraisal yearly should not increased for those reached 65 too. Even there’s exemption for this but if the house appraisal keeps going up then property tax is not reduced by that much.
"Elder tax ! Also "IRMAA" is a sort of Elder tax (not charged until you are at or over age 65 in most cases) A surcharge added to your Medicare charges. If I understand correctly your taxed Social Security Retirement benefit is added to the calculation as to whether you are assessed the IRMAA tax/Penalty and if so your liability to have to pay a higher tier of IRMAA which can penalize you more than $1000. per year for having one single dollar too much income in one tax year ! Also your IRA distributions including RMDs and IRA money moved and taxed as Roth IRA conversions also count toward your IRMAA liability.
Older folks are squeezed between Social Security taxation, Required Minimum Distributions and IRMAA. IRMAA limits this year are around $204K and I'll probably have to withdraw so that income is around that level or else I'll have huge RMDs at 72.
@@movdqa I don't know the calculation as to this but I think it might work in some people's case to pay a high IRMAA during one or two years in order to pay lower or no IRMAA during later years (making large Roth conversions) also what is called the "widow's tax" or "widower's tax" might be significant (married person loses the ability to file jointly and thus has to pay the higher "single" tax rates including IRMAA)
@@davidpowell3347 I'll take a look at it. I really should find some modeling software. We're going to pay a ton of taxes one way or another. At least we have time to plan for it.
My concern is this seems to be getting a lot less play in the media over no tax on tips . This needs to happen , I could care less if you cap Medicare deductibles for 2k if I am paying 5 k in tax’s on money I already paid tax’s on . Something tells me this is going by the wayside . At the very least reduce it to a flat 25% if over the min income for 0 taxation. On top of that I live in one of the 9 states left that still tax it . Can’t wait to get out
Sure, no tax on SS but the following year stop ss completely, then medicare, then VA disability benefits, military retirement benefits. Sure just beautiful.
Social Security wasn't taxed until Reagan. The President who keeps on giving . Rather than lifting the cap, rather than resisting the temptation to raid the trust fund, the neoliberal state chose to penalize the elderly to further enrich the rich.
SS tax at 85% wasn't taxed until Clinton.... and biden helped to get it into law....The Presidents who keeps on giving... its the dem moto.... spend spend spend other peoples money...
Well it's income that hasn't been taxed yet as it is taken as a deduction before taxes are paid. It should be taxed. But seniors should be supported by other means. Like... Oh... Healthcare!
I believe Joe Biden was the one who cast the deciding vote in the Senate to tax Social Security. I got married in 1973 and was a teacher. My hardest years financially were during the Ford/Carter years, Bill Clinton, and Barack Obama. They severely raised taxes. Clinton said he was going to help the middle class. I have two sons that were ready to go to college. The week after Clinton took office, the House and Senate passed the largest tax hike in history. The only saving grace is that we had saved a great deal of money for our older son but he had to go to a state school because we could not afford a private one. His younger brother attended the university that my wife and I were working and he got half tuition. Bill Clinton lied. I was a dyed in the wool Democrat and I switched parties because of economics.
The thing that will help retires most is to unclassifie social security benefits as taxable income for those of us retires over 70 and no longer working.
I live in Oregon, in Portland, and pay about $7500 property taxes per year for my modest house. There is a rule, if your income is below a certain amount and your age is over 65, you can defer your property taxes and they will become payable when you pass away or if you are living but your house is sold. Also, Oregon does not tax Social Security. For me, I have enough income that I don't have to choose this solution but feel better knowing that if I need to, this safety net is there for me.
Another handout to the rich. People who rely on social security for 100% of their income already pay NO tax on social security. Only the rich with most of their income from other sources have 85% of their social security taxed. Correct, it's a big big deal....for those that don't depend only on social security.
That is just not true. I make enough on social security alone to be taxed on it. The income limit for being taxed is not indexed to inflation and hasn't changed since Reagan so more and more people get taxed on just social security income every year.
@@michaelspurling4376 Sorry, but you are incorrect. A single person would need SS benefits in excess of $91,000 if they have no other taxable income and are under age 65. That would be over $7,500/month. That easily exceeds the maximum SS benefit even if they delayed benefits to age 70. And, if age 70, the standard deduction would be higher. A married couple with only SS income would need over $142,000 of SS benefits to owe any tax on those benefits. Again, that exceeds the maximum benefits available today.
I don’t rely on SSA totally. I do know that my investment into SSI was involuntary, the dollars were not invested to my benefit, and that the taxable benefits have not been adjusted for COLA. Another democrat bad idea. The funds collected go into the general fund, and get wasted. I AM political, and find this despicable.
Most people do not realize that they are being taxed at 6.25% and their employer is also contributing 6.25%. Self employed people pay the full 12.5%! And if they make a good living they are paying almost 50% of their income in federal taxes.
Assuming that they would be getting low paying jobs, wouldn’t make much difference. If millionaires and billionaires paid their fair share in taxes, now we’re talking
FUN FACT: For the first time ever, the US annual interest on it’s national debt is actually larger than the annual US defense budget. STOP PRINTING MONEY.
@@Satjr35031 granted. Reducing the budget of the Dept of Def alone would not resolve the current situation, but it would be a good start. Then need to cut other wasteful gov't spending to contribute to SS. Putting Elon and Vivek in charge of Gov't Efficiency should be a big help for the US taxpaying citizens.
At first glance, it would appear that the tax money that the government receives from SS benefits does not go into the Social Security trust fund, but actually it does. Here's how it works: The income tax money that you pay on your social security benefits goes to the general federal fund, as you would expect. Then, congress is advised (by the IRS I think) how much of the income tax receipts resulted from tax on SS benefits. Then, every year, congress votes and the President approves, that that amount is transferred from the general fund to the SS trust fund.
It us by itself, a terrible idea to cut the taxes. The reason is that doing so will make the social security trust fund run out of 3 years sooner and this means that everyone would take a cut, To fix it, they will need to do a combination of pushing back the full retirement age, raising the contribution limit, and adding maybe .25% to the individual and corporate contributions.
Nope. When you were working those employment TAXES, not a pension contribution, went to pay for then retirees’ benefits. It ceased to be your money at that point. What you got was a promise to a future benefit which will come from then workers taxes. It never went into an account with your name on name on it.
Here is my quandary. I paid in for 42 years, 37 of those years at the absolute maximum rate. I only get the max no matter how many more years I would have paid in. I was so mad after I retired that it took several months for the final payout of unused vacation, 400 hours worth and was hit another several thousand in SS tax I will never see. On top of all that, I get the lowest percentage of what I put in. Then for just another kick in the gonads, because I was paid well thru out my career, my pension puts me in a pretty high tax bracket currently making me pay 27% tax on 85% of that already lower rate. Although I was pretty highly paid, I lived and worked near San Francisco and that income was just getting by out there with a family of 3 children and a stay at home Mom. Put in more than anybody and will get the lowest percentage out. Finally, a small break if this tax free comes into play. This is not about not having enough, but about an injustice that just because I have more, you can take some and give me less and there is not a damn thing I can do about it. And you wonder why people voted Trump instead of Socialist.
News flash! This has been the way Social Security worked from day 1. It always was a progressive system designed to provide minimal support for the poorest Americans and progressively less benefits to high wage earners. You have a good problem. Quit whining
Social security payments are income. All income, if you are a US citizen is taxable (there are a few exceptions like municipal bond income). I don't like to be taxed on my income either, but I saved and invested diligently for 50 years in order to have an income which is fully taxable. (I receive no social security benefits) Either just eliminate income taxes entirely, or not. But eliminating taxes on certain income while assessing it on other income is discrimination. If any bill passes, I hope it is challenged in court.
Nope. When you were working you paid employment taxes which supported then retirees benefits. When you retire you get a benefit supported by then current worker taxes. Your money didn’t go into an account with your name on it. You aren’t being taxed twice on your money
What about those that are can't live on their social security and still have to maintain a job and they still have to pay social security taxes that's ridiculous we've already paid into the system to get out our social security on a monthly basis and here they are taxing us on labor that were already retired that is absurd that needs to go
As long as a cut cost in many many other areas... It seems like a possibility with the two nominations to look into things.. Is one hundred thousand dollar toilets (like they joke about) et cetera..
@there is only about 1.7 trillion in discretionary spending where cuts could come from. Period. Basic math. The rest is mandatory spending. That’s social security, Medicare, interest on the debt, etc. We have about 2 trillion over every year adding to the deficit. So even if you cut every single govt agencies discretionary budget (not gonna happen because the economy would tank in a very bad way) we still don’t have enough to cover the overspending. So nooooooo cutting spending will not help cover the tax decrease because it won’t even cover the current deficit spending. Newsflash we need more revenue coming in. There is a name for that by the way but nobody wants to say it. Cutting taxes will not help. At all. Cutting spending is only marginally effective and needs revenues for it to work. Marginally in that without tax increases even with deep deep cuts the deficit will continue to grow. BASIC MATH. There will be tax increases in the future no other way to fix the problem under our current structure.
Perhaps the tax will be eliminated, but will benefits be cut in the near future. It has to be paid for somehow. Of course, the next president will be blamed for that. Politics as usual.
Social Security trust fund return rate was only 2.387% for 2023. Of course it can't keep up with inflation etc. Maybe change something in this area? Maybe rebalance it 50% bonds and 50% stocks? I think its very possible to have 6% return rate. But our government restricts it. Why?
Then what do you do about sequence of return risk that the trust fund would be exposed to? There is a reason why the trust fund is invested in safe government bonds. It took 5 1/2 years to recover from the 2008 crash.
If this passes I am still working and taking social security at 69. I've been basically putting my social in my 401k. Might I change this to a Roth 401k contributions?
One illegal immigrant can have a anchor baby and that birthing cost alone to taxpayers in my area is $40,000 .Medicaid pays the hospital taxpayers pay taxes to Medicaid. 😢
Retired people after 65 should all be tax exempt.....period!
The big thing you missed in this video is the fact that taxes on Social Security should be illegal in the first place. Double taxation is illegal and that is exactly what is happening. SS recipients have already paid taxes on the wages when they were working and now when retirees desperately need this income the most to live the government gives them the shaft! Retirement may become a problem for Americans
More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.
I completely agree; I am in my mid 40s, approaching retirement, and have approximately over 2million dollars in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, the Fin-advisor can only be neglected, not rejected. Just do your due diligence to identify a fiduciary one.
This is exactly how i wish to get my finances coordinated ahead of retirement. Can you recommend the financial advisor you used to get ahead?
@@sabastinenoah My CFA Annette Christine Conte a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market
I merely Googled her name, and her website up right away. So far, it looks interesting. I sent her an email, and I hope she responds soon. Thanks
Nobody who has busted their ass for 50 years paying for others should have to be taxed twice for their earnings. EVER
Yes, agree!
Ditto. And THEN on top of that you get to pay IRMAA for your Medicare as well. If there were an alternative to Medicare, I'd sign up for it.
U dint have to if have Roth funds to supplement your ss benefit
FICA is a withholding. Not a tax.
I don’t understand how we are being taxed twice? The 7% you pay is into the fund and is essentially tax deferred… and you are drawing on that. If you live long enough, you’ll get all that back and more.
As a 70 year old, my biggest burden is property tax.
Property tax is unconstitutional.
I will do a reverse mortgage to stay in my house. I rather give my house to a bank when I die than a nursing home
I heard there’s a few states you can move to like South Carolina and a few others where if you’re over 65 years old you don’t have to pay property tax anymore.
@Slaytheday388 not true. We live in SC. Get a homestead exemption, which means we do not pay school taxes. We are 66 yrs. The vehicle property tax makes up for that. They get ya one way or another. From Illinois. Moved here 2.5 yrs. Still cheaper than Illinois though.
@ well I guess I’m wrong then, that’s just what I heard. I live in California where they charge you double for everything. I’m sure I’ll be skating out of this state when I’m ready to retire.
SOCIAL SECURITY SHOULD NEVER HAVE BEEN TAXED ANYWAY!!! WHY CAN'T THIS BE UNDERSTOOD??!!!It was already taxed once from our PAY!!!
A way for the government to pay us less money!
Do we get a refund on all are taxes payed on our SS since retiring?
Sure Mark, that would be great if all us SS would get a refund check for the money that government stole. But, that money was used for YEARS for their pet projects that’s exactly why it’s NOT there and dwindled away🤯🤬
Even though this issue has bi-partisan agreement, I don't expect the idiots in Congress to do anything for us peasants.
Peasants managed by idiots? Oh My!!😅
Congress won't give AMERICAN retirees a tax break cause they have to fund billions for proxy wars , illegals, foreign entertainment like Sesame street for Iraq, the worthless DEPT of Education which simply eliminating one one these or unlisted others would save billions in tax payer money and THEN IT WOULD BE no problem to give RETIREES A TAX BREAK!
I’ve said for years, they need to eliminate the SS cap.
So increase taxes then. Do people paying FICA taxes on this additional income get higher benefits or are we just giving them the shaft?
You're essentially asking to slap another penalty on high income earners. What people fail to realize is that when it comes to social security benefits the bar for high income earners keeps getting lower.
@@TheFirstRealChewy I am a high income earner. Continuing to pay SS after $165K is not going to break me. Taxes are going to go up one way or another.
Many millionaires have paid there limit into SS before the end of January....End the cap, or just by adjusting it, problem solved.
Don't know what this guy is saying - his is not the answer - his way will further delete SS-$ pool. Simpler solution is no cap on SS tax!!! --- Find Dr Ed Weir, PhD., semi-retired from SS office has many answers in his videos --- mostly closed door meetings to privatize SS & then Medicare!
I'd rather see the elimination of property tax. The myth about paying off your home is just that, a myth, property tax never goes away. It's especially hard on the elderly on Social Security when property tax is 30% or more of their income.
Why is it in Australia if live in a your primary house is property tax free
Not just property taxes on homes--ALL taxes---cars, boats, etc etc. Once we pay a tax when we buy it, we should never have to pay a tax again. ALSO we need to make insurance OPTIONAL, not mandatory--will make it more competitive and drive down prices
How about no tax on anyone 65 and over .
Hahahahahahah... Um no...
Yes and also for anyone raising a family. Make it zero.
@@deepblue523fl Well at this point lets just not have taxes... what could possibly go wrong...
Only if those of us over 65 quit using government services. So good luck with that
That would be nice...
It's our money we should not be taxed on it. Also we spend 30 years paying on a home and after it's paid off we should not be paying taxes on it.
Property taxes should have a limit. No more recurring taxes on our homes or land!!!
Between my Medicare Irma charge and 22% SS they take 1000 a month. What a scam
That’s awful….
And if you're poor, you lose it back to the state in any benefits you get. A 2.5% increase causes a loss of 6% in food stamps. They can keep the COLA. It's all smoke and mirrors
If the IRS was a private corporation it would be prosecuted under the federal RICO Act.
IRS does not make the rules. Congress is where that happens. IRS just does what they are told to do by Congress ( legislation).
@@ronhall5395 IRS still owes me a $2000 tax refund from 2019 (when Covid hit). About 2 years ago the IRS destroyed millions (yes millions) of paper tax documents from fiscal year 2019.
The IRS "reasoned" that they would never get to them because they were short staffed. So they shredded them including my return. Congress did not order that.
I know, it seems impossible -- a CPA told me. But look it up -- or google What happened to 2019 paper tax returns. IRS does not just do what Congress tells them. They make many administrative rules which you can find in the Code of Federal Regulations. They also place their own administrative take on statutes which are intended to govern their actions. And they often take arbitrary actions such as, as I mentioned, destroying tax documents they don't want to deal with. I don't know all the rules on tax documents, but that destruction of important and ofter irreplaceable tax documents is either illegal, or should be.
@@ronhall5395 IRS makes it's administrative rules which can be found in the multi-volume Code of Federal Regulations.
I took over my elderly parents finances. They didn’t hit the limit to have to pay taxes on their SS. Then my mother passed away and now my father as a widower is over the limit due to pension and dividend income has to pay taxes on his SS. It is insane to me that the government doesn’t index the 1980’s income limits for these taxes. Every year more and more seniors have to pay taxes on their SS. It’s ridiculous. Where is AARP and other lobbyists to help push for reform ??
They are DOA
The taxing of social security does not have to change. The original idea was to tax only the high earners. The 32,000 - 44,000 numbers for couples were in 1983 dollars. Update the social security worksheet to include an inflation adjustment from 1983 until the present and the problem for almost all social security recipients will be eliminated. The federal income tax is adjusted each year for inflation. Why not the social security worksheet. That would be an easier way to handle this issue.
That’s not complicated enough for our corrupt politicians
No one should be taxed on SS benefits. High earners earned their benefits just like everyone else. Many worked more than one job, overtime, holidays, weekends, swing shift.....whatever it took to secure a comfortable retirement. They shouldn't be punished for being responsible.
You’re talking about common sense. We both know that when it comes to our government, there is NO SUCH THING!!
Ive told this to people for years about the $44K has not changed even for inflation. According to what I can figure at 3% inflation adjustment over 39 years the $44K would be around $139K.
While it sounds great, there are concerns about how it might impact the funding for Social Security in the long run. If they eliminate those taxes, how will they fill the gap?
Exactly! It’s a double-edged sword. On the one hand, we’d save a lot of money, but on the other, I worry about the stability of the program. I mean, what happens to retirees if the funds start running dry?
That’s my concern too. It might help in the short term, but I’m thinking of how it could affect my retirement in 10-15 years. I don’t want to bank on Social Security alone and end up regretting it.
Same here. I think it’s a good time to focus on other ways to grow wealth. A good investment advisor could help you diversify and strengthen your portfolio. I’ve been working with Joseph Nick Cahill. He’s a CFA with years of experience in long-term and short-term investments. He helped me avoid costly mistakes and improved my portfolio significantly.
Interesting. I’ve been managing my finances myself, but I know I could do better.
That’s why I recommend someone like Joseph Nick Cahill. He offers free consultations and really focuses on creating strategies to help you retire comfortably. He’s helped a lot of people hit millionaire status by avoiding common pitfalls, like over-reliance on Social Security or investing too conservatively.
The biggest problem with the SS tax is you get pentlized when pulling from your retirment account. The more you pull out the more SS is taxed. Plus they force you to take RMD's. It is like taxing you twice for the withdrawl. Why include income and pension on what is taxable on SS? Just a small pension will force you to pay SS tax.
Let’s face it first RMD is at age 73 p.Nobody is forcing you to take it out earlier
While I agree since I’m pretty much in the same boat, the facts are that roughly half of retirees don’t have any pension or retirement accounts.
@@Satjr35031 Some people can not live of the measly amount Social Security is. That is why they saved while they were in their working years. And for that, the government punishes them for being responsible.
@@johnscott2746 Why don't they have a 401k plan? Almost every US employer offers them.
That's one of the reasons having your retirement funds in Roth option accounts is such a great idea.
How about dramatic cuts in discretionary spending before we trust politicians enough to touch social security! But eliminating Federal tax on social security is a good thing to do!
Other spending is irrelevant.
Always hear about Social Security running out of money, But we never hear about welfare running out. Hmmmmm
I’ll believe it when I see it🤞🏻
At 70 yrs old my biggest burden is homeowner ins and Medicaid
Homeowners insurance is optional
@@bruced.370 Not if you live in CT, it's not....ESPECIALLY if you still have a mortgage
I think income tax should be eliminated!
I love this. I worked for IRS but never understood why it was taxed.
If King Obiden can single-handedly declare student loans "forgiven," then orange man can declare no tax on SS.
But only by Executive Order which can be overturned the minute he leaves office. The same thing happened after Obama left office.
Every Penny taken as double taxation should be retroactively returned to the payers. Our government have been criminally stealing it since inception.
If we raised the payroll income tax cap on the rich from
$160,000 to a million dollars we could RAISE the SS benefits for everyone and it would never go broke.
So penalize the successful people just because some people don't plan and save for retirement? Saving for retirement should begin with your first job!
I am supposedly a high earner. Just beat the cap last year. I sure don’t feel well off.
The big problem is not indexing for 40 years of inflation.
Thanks for explaining where all these numbers (thresholds, percentages of tax) come from!
Priority should be preserving solvency of SS to ensure full payout. No other priority comes close.
Don’t fall prey to the fear mongers. The only risk to SS is grubby congressmen
Why is solvency #1. Seems the American people have been brainwashed into thinking that the only line item on the federal budget that can't run a deficit is SS? Why is it we can borrow/print $250 billion to kill a million people in Ukraine but SS has to be 100% paid for from payroll taxes. It is projected after 2034 SS will have $160 billion/yr deficit. Why can't that deficit be made up from Income/Corportate taxes, monetized, borrowed..... like everything else the government does. If they want to get serious about budget cuts, why not prioritize SS as the last line item that gets cut instead of the first?
Do your Home Work....... The SS Will Be Here In Some Form Forever. OMG...!!!
@@densnow4816 they've been talking about sunsetting not preservation. How much honest thought do you believe they've put into this.
Then quite funding the Ukrainian pensions and government salaries and fund social security with it. And don’t forget the victims of Hurricane Helene.
The cap should be increased significantly beyond 168k.
It's not fair because we have already paid tax on this money stop borrowing from it and stop giving it to people who haven't worked and supported this country
So what is going to nake up for the funding shortfall? If they eliminated the tax cap while also indexing the Social Security tax limit to inflation would make more sense - so taxation of Social Security would only occur if your annual income was over about $150k, that's when your benefits would be taxed. That makes sense to me rather than just eliminating it.
What would make up for the shortfall? How about no longer sending hundreds of billions of dollars to Ukraine, the most corrupt country in the world, to fund a war they can’t possibly win? How about that?
@@silentnot4812 the tax on social security benefits goes back into the social security fund.
Is this before of after they reduce SS like has been publicly talked about last week? Medicare too.
As a senior of course I would love no tax on SS...the problem is Trump and others have not said how they will fund SS for the long term without the tax. I think they will say anything for a vote. Also I have young adult children. I do not want to be like my "me generation" age group and only think about what's good for me only. SS needs to be stable for them too.
He never will....dt is pure BS.
But the issue is that the original amount of money set was set over 30 years ago and never adjusted for inflation. If it were adjusted for inflation since 1980 that amount of income you would have to have to tax Social Security would be over $150,000 a year. Please get informed.
Under our current laws, when the “Trust Fund” runs out of money Social Security benefits will be automatically reduced to the current revenue from Social Security taxes. So if Congress does what it’s best at, which is nothing, Social Security benefits will be reduced dramatically in 9 to 10 years.
@@5DNRGso how has Biden and his cast of 🤡 worked out for you and your retirement? Turn off your tv
@@5DNRG TDS ALERT...! You Lost.........
I’m considering moving to belieze and pay cash for a home. Property tax on a 250k home is about 90.00 a year.
No tax on benefits and get rid of the earnings cap!
Amen!
that's coming....too many young people are untrainable or unwilling to work so the are gonna need to get Boomers to pick up the slack. That, and Boomers have done a terrible job of saving.
The earnings cap is a good idea. Now if you want to raise it to a more reasonable figure, I think most people would sign off on that.
The cap will never be removed. Why? Look at professional athletes. Your contract says you get 10 million a year. As a self employed person you would owe 1.5 million in social security taxes. Given most professional athletes don’t work 35 years their payback would be pitiful. But a giant thanks from the government .
@Dinosaur123-i8j they would pay 6.2% 620k....There are around 30 pro athletes in America (according to Google) that earn 1 million or more a year.
Thank you for providing quality, consistent information provided daily and helping each of us move ahead step by step
Originally there was not tax on social security. If you had other income or pensions it was taxed but social security was not added to you income to be taxed.
You can thank Reagan for that.
Several States do not tax social security benefits. At least a small savings for those recipients.
@@DWS1435 originally there was no income tax either.
@@bdtn342 TRUE. Good luck seeing them take that away.
This is how it should be again. No tax on SS, but tax other income or pensions
Thanks!
A tax cut would be mistake. The reason is that it will accelerate the depletion of the social security fund, meaning that it will run out of money as early as 2033, and all benefits would have to be cut by about 18% to 21%. I could survive this but a lot of people that took benefits early are struggling to make ends meet.
The income tax you pay on your SS goes into the general fund which the just give away to foreign countries anyway.
Nah
tax cuts to corporations n rich cuts cuts where is the government goin to fund ssi and Medicare when there's no money. sorry guys we have to cut your checks
That’s so true. With potential cola raises the next eight years it will all be wiped out with the cuts. Hard to imagine someone with only $2,000/mo. living on that in 2033. I get taxed now and don’t mind.
Actually, thats not true. Taxes on ss benifits must be rolled back into the fund. SS tax on income has been robbed for years@rogerhollon5009
Just swith to the Fair Tax and make as much of all govermental activities transparent as possible!
They need to raise the income level when it kicks in, the levels have not changed since the law was introduced. How about married no tax until you make $160k and $120k if single, most retires would pay no tax then.
Retiring at 62 may be challenging for someone without a 401(k),, pension, or significant savings, even if they're earning a high income in their later working years. By retiring early, they risk leaving substantial earnings behind for a relatively small Social Security benefit.
I've been paying into SS for over 40 years, and I'm not waiting any longer to take it. I'm going to claim it early. Now, I'm focused on investing in myself and putting money into the stock market. Over time, I've learned that building real wealth comes from smart investments and having a financial advisor.
I agree completely. I’m 60 years old, recently retired, with about $1.95 million in non-retirement investments. I have no debt, but not much in my retirement accounts compared to the rest of my portfolio from the past few years. Honestly, you can’t ignore financial advisors, just take the time to find a good one you can trust.
@@mikegarvey17My husband and i just had a relative conversation this morning. This is exactly how we wish to get our finances coordinated ahead of retirement. Can I get access to your advisor?
*Izella Annette Anderson* is the advisr I use and I'm just putting this out here because you asked. You can Just search the name. You’d find necessary details to work with to set up an appointment.
Thanks! I’ve been meaning to start investing but kept procrastinating. I’ll definitely look her up and see what she advises. This was really helpful!
The Social Security “Trust Fund” is really the Federal Government’s General Budget.
The SS is invested in government bonds that are easily accessed.
And the General Fund is what is used to pay back those bonds. There is no special pool of money set aside to pay the bonds. When bonds are cashed in the money comes from the General Fund / General Budget.
Laughable. Your rightful-benefit will be cut and you will still be taxed. In that order.
I'm all for eliminating SS Tax, yet, like COLA, if SS tax goes away, they'll just raise rates elsewhere. As a DoD retiree, we looked forward to the new year COLA increase, and so did our health insurance costs. The government will ALWAYS find a way to get their cut.
Why is anyone FOR more tax?
They aren’t - they only want others to pay higher taxes
So if your only income is from Social Security, it is already exempt from federal tax. It becomes taxed when you have additional income over a certain amount.
They should tax social security but raise the threshold at which it’s taxable. Taxing SS helps in means testing SS benefits. There is a point where the rich should be taxed because they don’t need it.
As someone who was fortunate enough to cap on SS payroll for the past 20 years.
It wouldn't really hurt to continue the contributions over the set amount
Most people who receive SS don’t pay taxes because they are low income. The SS tax goes into the SS trust fund. So unless Congress acts to shore up the trust fund ( like raising the FICA cap) cutting the tax will cause the trust fund and subsequent SS reductions to be larger and come sooner. This will be devastating for those who are low income as the receive no benefit from the tax cut and yet will suffer from the benefit cut.
Exactly! But you'll NEVER get Trump's fanboys to understand this. They can't add two numbers together to save their lives.
What’s bothering me is that I get a 2.5% increase in my monthly SS benefit. But they raised the monthly fee for Medicare by almost 30% which is taken out of my SS benefit. Why am I being taxed by Medicare? I have paid into SS and Medicare for over 45 years and now they take it out of my SS every month. That is taxing me on money that is already mine!
They shouldn't eliminate the tax, but rather go back to 1984 and index the thresholds for inflation. That way the tax will not be hitting the middle class like it is now. Also, if they want to raise the cap to help offset the cost, that's fine too, IMO.
The $32 & $44K limit for will be raised closer to approximately $70K & $90K. Over $70 & 90K will be takes at 22% or higher. Income over $150K will be taxed up to 33%. Bottom line, tax will not be eliminated completely for everyone.
It seems very key to understand whether or not the taxes we pay on SS benefits are actually placed into the Trust Fund. If Trump gets SS tax eliminated, the SS fund will deplete even sooner than 2033
Good point. I assumed they went back in. They should.
EXACTLY! You're one of the few people posting here that understand that.
They are NOT - only fica taxes are - fed income tax is completely different
@@frunkdup828 You're wrong. Taxes paid on Social Security Retirement Benefits are credited back into the trust fund. In 2023, that was about $50.7 billion with another $35 billion going back into the Medicare trust fund. Look it up!
everyone has good points on monthy tax. What is not being said is that the non taxed income will still be taxed as you file your IRS annual taxes. It put me in the 32% bracket, instead of the 22% bracket.
No it won’t as SS won’t be included in your taxable income
Trump has a concept of a plan. Seen this song and dance before.
He lowered everyone’s taxes from a “ concept of a plan”. BTW, one of the key votes when SS was initially taxed and, a second time when the tax rate was increased was the current Vegetable ( Biden) residing in the WH.
How about no charge on Medicare part B for people over 65. They already paid to qualify for Medicare during working. Also house value property appraisal yearly should not increased for those reached 65 too. Even there’s exemption for this but if the house appraisal keeps going up then property tax is not reduced by that much.
"Elder tax !
Also "IRMAA" is a sort of Elder tax (not charged until you are at or over age 65 in most cases) A surcharge added to your Medicare charges.
If I understand correctly your taxed Social Security Retirement benefit is added to the calculation as to whether you are assessed the IRMAA tax/Penalty and if so your liability to have to pay a higher tier of IRMAA which can penalize you more than $1000. per year for having one single dollar too much income in one tax year ! Also your IRA distributions including RMDs and IRA money moved and taxed as Roth IRA conversions also count toward your IRMAA liability.
Older folks are squeezed between Social Security taxation, Required Minimum Distributions and IRMAA. IRMAA limits this year are around $204K and I'll probably have to withdraw so that income is around that level or else I'll have huge RMDs at 72.
@@movdqa I don't know the calculation as to this but I think it might work in some people's case to pay a high IRMAA during one or two years in order to pay lower or no IRMAA during later years (making large Roth conversions)
also what is called the "widow's tax" or "widower's tax" might be significant (married person loses the ability to file jointly and thus has to pay the higher "single" tax rates including IRMAA)
@@davidpowell3347 I'll take a look at it. I really should find some modeling software. We're going to pay a ton of taxes one way or another. At least we have time to plan for it.
RMD is at age 73 not 72 pay attention
@@Satjr35031 Respectfully...What is RMD ? Thank you...
My concern is this seems to be getting a lot less play in the media over no tax on tips . This needs to happen , I could care less if you cap Medicare deductibles for 2k if I am paying 5 k in tax’s on money I already paid tax’s on . Something tells me this is going by the wayside . At the very least reduce it to a flat 25% if over the min income for 0 taxation. On top of that I live in one of the 9 states left that still tax it . Can’t wait to get out
Sure, no tax on SS but the following year stop ss completely, then medicare, then VA disability benefits, military retirement benefits. Sure just beautiful.
I agree if they illuminate the SS cap on earnings it would make SS solvent forever.
Social Security wasn't taxed until Reagan. The President who keeps on giving . Rather than lifting the cap, rather than resisting the temptation to raid the trust fund, the neoliberal state chose to penalize the elderly to further enrich the rich.
SS tax at 85% wasn't taxed until Clinton.... and biden helped to get it into law....The Presidents who keeps on giving... its the dem moto.... spend spend spend other peoples money...
Well it's income that hasn't been taxed yet as it is taken as a deduction before taxes are paid. It should be taxed. But seniors should be supported by other means. Like... Oh... Healthcare!
I believe Joe Biden was the one who cast the deciding vote in the Senate to tax Social Security. I got married in 1973 and was a teacher. My hardest years financially were during the Ford/Carter years, Bill Clinton, and Barack Obama. They severely raised taxes. Clinton said he was going to help the middle class. I have two sons that were ready to go to college. The week after Clinton took office, the House and Senate passed the largest tax hike in history. The only saving grace is that we had saved a great deal of money for our older son but he had to go to a state school because we could not afford a private one. His younger brother attended the university that my wife and I were working and he got half tuition. Bill Clinton lied. I was a dyed in the wool Democrat and I switched parties because of economics.
@thomascook4318 the voting was bipartisan and overwhelming in favour. It's not like one person was the deciding factor. Give it up
@@laundrygoddess4 Reagan could've vetoed it!
The thing that will help retires most is to unclassifie social security benefits as taxable income for those of us retires over 70 and no longer working.
That would be good but then aren't they also talking about cutting Social Security?
I live in Oregon, in Portland, and pay about $7500 property taxes per year for my modest house. There is a rule, if your income is below a certain amount and your age is over 65, you can defer your property taxes and they will become payable when you pass away or if you are living but your house is sold. Also, Oregon does not tax Social Security. For me, I have enough income that I don't have to choose this solution but feel better knowing that if I need to, this safety net is there for me.
Good news: No tax on Social Security.
Bad news: No Social Security
Hahahahaha 100% tax on nothing is nothing...hilarious.
Hope it happens. Only makes sense. We have been taxed on that money many times over
Another handout to the rich.
People who rely on social security for 100% of their income already pay NO tax on social security.
Only the rich with most of their income from other sources have 85% of their social security taxed.
Correct, it's a big big deal....for those that don't depend only on social security.
That is just not true. I make enough on social security alone to be taxed on it. The income limit for being taxed is not indexed to inflation and hasn't changed since Reagan so more and more people get taxed on just social security income every year.
I'm taxed on my ss
@@michaelspurling4376 Sorry, but you are incorrect. A single person would need SS benefits in excess of $91,000 if they have no other taxable income and are under age 65. That would be over $7,500/month. That easily exceeds the maximum SS benefit even if they delayed benefits to age 70. And, if age 70, the standard deduction would be higher.
A married couple with only SS income would need over $142,000 of SS benefits to owe any tax on those benefits. Again, that exceeds the maximum benefits available today.
I am retired and my wife still works because of her age. Between us we go over the 44,000 limit. So my benefits are taxed.
Congress has had a bill for a year now, what's the hold up
I don’t rely on SSA totally. I do know that my investment into SSI was involuntary, the dollars were not invested to my benefit, and that the taxable benefits have not been adjusted for COLA. Another democrat bad idea. The funds collected go into the general fund, and get wasted. I AM political, and find this despicable.
You never invested in SSI You invested in SS big difference
@ I didn’t say SSI, I said SSA. READ IT.
Most people do not realize that they are being taxed at 6.25% and their employer is also contributing 6.25%. Self employed people pay the full 12.5%! And if they make a good living they are paying almost 50% of their income in federal taxes.
Let's get all the people on welfare working and pay taxes....that may help the deficit!
Assuming that they would be getting low paying jobs, wouldn’t make much difference. If millionaires and billionaires paid their fair share in taxes, now we’re talking
Most can't work. Old or disabled.
Hallelujah ! That is long overdue.
Need to reduce the budget from the Dept of Defense and fund Social Security, problem solved.
FUN FACT: For the first time ever, the US annual interest on it’s national debt is actually larger than the annual US defense budget. STOP PRINTING MONEY.
Math doesn’t compute. SS pays out $108 billion a month.
@@Satjr35031 granted. Reducing the budget of the Dept of Def alone would not resolve the current situation, but it would be a good start. Then need to cut other wasteful gov't spending to contribute to SS. Putting Elon and Vivek in charge of Gov't Efficiency should be a big help for the US taxpaying citizens.
Separate funds.
SS is not meant to be welfare
Angie Craig representative Democrat from Minnesota started this no tax on SS two years ago. She is correct
There won't be a tax because there won't be any Social Security.
At first glance, it would appear that the tax money that the government receives from SS benefits does not go into the Social Security trust fund, but actually it does. Here's how it works: The income tax money that you pay on your social security benefits goes to the general federal fund, as you would expect. Then, congress is advised (by the IRS I think) how much of the income tax receipts resulted from tax on SS benefits. Then, every year, congress votes and the President approves, that that amount is transferred from the general fund to the SS trust fund.
Is that your opinion? Or can you actually reference the sources that verify what you say?
@@davidk.3133 It is not my opinion. I'm sure if you search the web a bit you will find it to be substantiated.
@@davidk.3133 Not my opinion. I'm sure if you search the web a bit you will find information that substantiates my statement.
It goes directly to SS and immediately out to beneficiaries.
This is a good start. Next step is to not tax our 401k / 403b / retirement IRAs distributions. Everything shoumd be treated as a roth IRA.
Or, no income tax for seniors 65 and older.
Yes but eventually the govt will want to tax Roths as well....😢
It us by itself, a terrible idea to cut the taxes. The reason is that doing so will make the social security trust fund run out of 3 years sooner and this means that everyone would take a cut, To fix it, they will need to do a combination of pushing back the full retirement age, raising the contribution limit, and adding maybe .25% to the individual and corporate contributions.
That would be awesome but it will NEVER happen
Keep dreaming guys.
The GOP continue to tax on the poor for everything and little tax on the multi millionaires and billionaires.
How do you pay taxes on Social Security when you stop receiving Social Security?
Why did we ever pay taxes on money that was ours to begin with. So criminal they need to pay everybody back who pay taxes on Social Security😢
Nope. When you were working those employment TAXES, not a pension contribution, went to pay for then retirees’ benefits. It ceased to be your money at that point. What you got was a promise to a future benefit which will come from then workers taxes. It never went into an account with your name on name on it.
he says no income tax too
Here is my quandary. I paid in for 42 years, 37 of those years at the absolute maximum rate. I only get the max no matter how many more years I would have paid in. I was so mad after I retired that it took several months for the final payout of unused vacation, 400 hours worth and was hit another several thousand in SS tax I will never see. On top of all that, I get the lowest percentage of what I put in. Then for just another kick in the gonads, because I was paid well thru out my career, my pension puts me in a pretty high tax bracket currently making me pay 27% tax on 85% of that already lower rate. Although I was pretty highly paid, I lived and worked near San Francisco and that income was just getting by out there with a family of 3 children and a stay at home Mom.
Put in more than anybody and will get the lowest percentage out.
Finally, a small break if this tax free comes into play.
This is not about not having enough, but about an injustice that just because I have more, you can take some and give me less and there is not a damn thing I can do about it. And you wonder why people voted Trump instead of Socialist.
My heart bleeds for the poor guy who is making so much money in retirement that his tax rate is at 27%. 🤨
Same situation, but since the cap the max income subject to SS tax it seems only fair to cap max payments.
News flash! This has been the way Social Security worked from day 1. It always was a progressive system designed to provide minimal support for the poorest Americans and progressively less benefits to high wage earners. You have a good problem. Quit whining
Social security payments are income. All income, if you are a US citizen is taxable (there are a few exceptions like municipal bond income). I don't like to be taxed on my income either, but I saved and invested diligently for 50 years in order to have an income which is fully taxable. (I receive no social security benefits) Either just eliminate income taxes entirely, or not. But eliminating taxes on certain income while assessing it on other income is discrimination. If any bill passes, I hope it is challenged in court.
Sad that people didn’t plan for retirement.
Never should have been taxed..... double taxation is never fair!
They tax on the gross and not the 85%. Also, they are taxing already taxed income.
That’s not exactly how it works
Nope. When you were working you paid employment taxes which supported then retirees benefits. When you retire you get a benefit supported by then current worker taxes. Your money didn’t go into an account with your name on it. You aren’t being taxed twice on your money
What about those that are can't live on their social security and still have to maintain a job and they still have to pay social security taxes that's ridiculous we've already paid into the system to get out our social security on a monthly basis and here they are taxing us on labor that were already retired that is absurd that needs to go
Instead of giving all the other countries money why don’t we just give it to the social security system!!!! Stop wasting our money!!!!
When you're self employed you pay all your social security tax but were still being taxed on the employer (supposed) share!
I am being the 80 percent. I would love to pay no tax. However, I doubt this will happen. From my limited understanding it will bankrupt the system.
As long as a cut cost in many many other areas... It seems like a possibility with the two nominations to look into things.. Is one hundred thousand dollar toilets (like they joke about) et cetera..
Half of what they grifted to Ukraine would be enough to shore up Social Security for a long time
@@coastalhillbilly3419 Did that got from the same pot?
@there is only about 1.7 trillion in discretionary spending where cuts could come from. Period. Basic math. The rest is mandatory spending. That’s social security, Medicare, interest on the debt, etc. We have about 2 trillion over every year adding to the deficit. So even if you cut every single govt agencies discretionary budget (not gonna happen because the economy would tank in a very bad way) we still don’t have enough to cover the overspending. So nooooooo cutting spending will not help cover the tax decrease because it won’t even cover the current deficit spending. Newsflash we need more revenue coming in. There is a name for that by the way but nobody wants to say it. Cutting taxes will not help. At all. Cutting spending is only marginally effective and needs revenues for it to work. Marginally in that without tax increases even with deep deep cuts the deficit will continue to grow. BASIC MATH. There will be tax increases in the future no other way to fix the problem under our current structure.
@@kingston24-x2h no, it didn’t, but some people either don’t understand or don’t care 🤷♀️
I'll believe it when I see it.
Perhaps the tax will be eliminated, but will benefits be cut in the near future. It has to be paid for somehow. Of course, the next president will be blamed for that. Politics as usual.
It'll be interesting if this gets passed by congress, personally I don't have much confidence that it will .... we'll see
That would be great!
I've always bought real estate during real estate collapses and rented it.
Glad I did.
Social Security trust fund return rate was only 2.387% for 2023. Of course it can't keep up with inflation etc. Maybe change something in this area? Maybe rebalance it 50% bonds and 50% stocks? I think its very possible to have 6% return rate. But our government restricts it. Why?
Then what do you do about sequence of return risk that the trust fund would be exposed to? There is a reason why the trust fund is invested in safe government bonds. It took 5 1/2 years to recover from the 2008 crash.
@james1527 6% risk?!
Social security is essentially a pay as you go system which is no longer in surplus. There is no money to invest
@@byronbuck1762 There is currently over 2 trillion in the SS trust fund invested in government bonds.
@byronbuck1762 it's not true. Social Security Trust Fund is invested into US bonds. It will run out of money as investment by 2034 or so.
If this passes I am still working and taking social security at 69. I've been basically putting my social in my 401k. Might I change this to a Roth 401k contributions?
Migrants getting far more in benefits than do retirees shows that government has a spending problem rather than a taxing problem.
One illegal immigrant can have a anchor baby and that birthing cost alone to taxpayers in my area is $40,000 .Medicaid pays the hospital taxpayers pay taxes to Medicaid. 😢
That is bogus. Illegal immigrants are a huge net positive to social security as they pay billions in employment taxes and get NOTHING in benefits.
Are you opining based on first hand experience or repeating what you’ve heard in media?
@@youngtimer964 you still believing the media these days?
@ rarely watch or listen. I’ll ask another way - how many “migrants” do you know personally that are getting far more in benefits than retirees on SS?
Another nice thing would be to eliminate federal taxes on pensions.
Cost me about 6k in income taxes a year, didn't work my butt off for 50 years to be doubled taxed