Ending Taxation of Benefits
Photo Credit: thewatermarkgrp.com One major benefit of the Social Security Reform Act we have told you about is finally starting to get the recognition it deserves. The elimination of the “taxation of benefits” is part of Rep. Sam Johnson’s social security proposal to Congress, which was introduced in December.
It is a little known fact that individuals and couples may have their social security benefits taxed, if they earn more than $25,000 and $32,000 respectively. A relatively low threshold when compared to the cost-of-living.
The reason many seniors are angry at the taxation of their benefits, is that the tax limits have not been changed to keep up with inflation-in over 30 years. That is also the reason a new study of SS recipients revealed that a whopping 91 percent of them support the proposal. Additionally, 78 percent of the people surveyed also believe that the wealthiest of Americans should pay more and the taxable earnings cap should be removed to ensure that it happens.
To improve the health of the system, the tax cap was raised this year from $118,500 to $127, 700. This increase ensured that more than 12 million workers will be contributing to the program this year. In fact, the president is working on many governmental and economic changes that will enhance the…
Stability of Social Security
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Curbing illegal immigration and stabilizing the economy are just two of the problems Trump has addressed that will strengthen the solvency of the program. Recipients have seen modest benefit increases in 2017 and will likely see further increases in October.
It is more well-known that social security receives more than 85 percent of its funding from payroll taxes, and therefore its sustainability was never in danger. A fact Democrats often fail to mention when they are touting how President Trump will destroy the program.
According to Pew Research, social security has reduced poverty levels among seniors by 40 percent. Even better news is that by doing away with taxes on benefits, recipients will keep between 50-85 percent more of their hard-earned money. Let’s just hope Democrats offer President Trump more support for this bill than they did for his efforts to improve healthcare.