Social Security You earned it you keep it

@MaryRose416568 

It appears that within this proposed legislation the amount that would make up the loss of these tax collections on SS benefits would be made up by a transfer of these funds from the General Fund thus increasing our national debt.

The increase in the collection of payroll taxes on raising the cap on taxable earnings would create a new benefit calculation for those who would be effected by this increase and together THIS IS THE ONLY PART OF THE LEGISLATION THAT HELPS WITH FIXING THE TRUST FUND FOR THE LONG TERM.

Why shouldn’t one of these provisions offset the other ?

We are just playing games with this proposed legislation - so instead of benefits being cut by 20% in 2034 when the fund is forecast to be depleted - it just changes it to 2054 with them being cut by about 10% at that time.

By taking money from the General Fund for the removal of these taxes we are losing valuable income to the Trust Fund and the program then will not be self-sufficient as it was originally designed to be.

I don’t think our legislators understand basics of add and subtract.  If we increase benefits there has to be an equal offset of increasing income.  And if we remove income (like the tax on SS benefits) then there has to be some way to make that income up rather than taking it from the General Fund.  

The proposal should be written where there is NO offset from the General Fund - the income to offset the removal of tax on benefits should be from the raising of the cap on the taxable earnings or some other [inside the program] increase in revenues.

The way this proposed legislation raises the cap on the taxable earning is (1) tax those earning ABOVE $ 250,000 and then when the current cap catches up to $250,000, all earnings would be taxed.

SSA.gov. - SS Actuary Report on the proposed You Earned It, You Keep It Act 01/24/2024 (pdf)

I just don’t want the Trust Fund to start relying on General Funds - doing it once makes it easier to do it again and again.  

I think I will wait to see what the new Committee comes up with in their suggestion for a broader fix rather than just piece mill action.  And I am speaking as one that does pay taxes on my benefits.

The NUMBERS:   SSA.gov - Trust Fund Financial Data by year (1957 - 2023)

You are absolutely right!  I just did my taxes and I have to pay over $1,000 to the Federal Government!

This is outrageous!  I collect a small amount of Social Security every month and it is imperative I continue to work at 67 years of age.  I worked as much overtime as I could over the holidays to make ends meet and now I find that due to Federal Taxes I need to pay over $1,000 - basically what I worked so hard for over the holidays!  I am shocked by this!  And on the news tonight we hear how President Biden is forgiving student loans to the tune of over 1 billion dollars!  How about some relief for the elderly that need to continue to work to make ends meet in this economy???

This subject really needs to be addressed soon - more elderly are having to work now due to inflation and we should not have to continue to pay outrageous taxes on our Social Security, especially those of us who do not get substantial checks.

Yes, it will also turn the national debt around from continuously increasing, to starting to shrink according to the projections.  We are currently adding 1 Trillion dollars to the national debt each 100 days, and this bill is projected to decrease the national debt by 9 Trillion dollars over 75 years.  We need to stop it from increasing while it is still possible and before USA is completely owned by  foreign interests.  Please tell your legislator to support the "You earned it, You Keep it" Social security bill!!!!

FYI, This bill has been now supported by the chief actuary of the Social Security Administration.

This is an excerpt from January 29th, 2024 in the Investment News written by Greg Greenberg.

"The Social Security Administration found last week that Minnesota Rep. Angie Craig’s proposed tax legislation may indeed extend the lifespan of the retirement program."

I have sent an email to my House Rep Bill Pascrell via his website to please cosponsor this bill.

This seems to be reintroduced as H.R. 7084.

I’d like more information. Says it will lower or even get rid of SS benefits for “high earners” but it’s a little vague in what a high earner is.  

YES!!!!  AARP needs to openly support this BILL, so why aren't they doing so?!?!?  Seems very strange they do not!!

Totally agree. Why is AARP quiet on this important issue?

So right.

Taxing social security is double-taxation. As a recipient, if I earn a few extra dollars, I get taxed at a higher rate on the income than someone else earning the same income, all else being equal, 

It’s a tax for being old!

Let’s make sure this doesn’t morph into a tier adjustment. The tiers are mischievous – they keep the tax complications as the tax interacts with the various tax thresholds - another patchwork tax code mess. Keep it simple. Eliminate.

Eliminating the despicable tax would be a cause for rejoicing; adjusting the tiers – a betrayal of the spirit of You Earned It, You Keep It.

I am not rich; I work, though not full-time, to supplement my income.

As to high-benefit recipients, it’s true that they’ll benefit if they have earned income, but it’s also true that it’s the current class of high earners who will be paying for it (and extending the solvency of social security to boot).

I’m uneasy about taxing rich people more just because they’re rich. It’s so divisive and unfair. But it’s probably inevitable as part of making social security solvent. This bill is probably the least damaging way to do it, and it doesn’t decrease benefits for rich or poor.

I, too, don’t understand why AARP is silent about this. I thought this was the kind of advocacy they were all about. They should be trumpeting it from the roof tops.