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Contributor ⭐
August 8, 2024

Does AARP support the idea of no taxes on Social Security benefits?

  • August 8, 2024
  • 38 replies
  • 15101 views

I'm interested in the idea of no taxes on Social Security benefits.  I understand that this is a campaign promise by a presidential candidate but feel it is something that AARP should support.

    38 replies

    Contributor ⭐
    August 19, 2024

    I agree. As an advocate for retired people, AARP should support this irrespective of partisan politics.

    DirkB349973
    Conversationalist ⭐
    August 19, 2024

    Since taxes go back into the fund, collecting no taxes would exhaust the fund more quickly. Just something to consider.

    BillWhitmire
    Contributor ⭐⭐
    August 24, 2024

    https://www.nasdaq.com/articles/how-much-money-has-congress-taken-social-security-2019-02-04   Many would like to blame ss recipients for what they say will result in the end of the the system completely. The SS program is not failing there is plenty of money in the fund, nearly $3Trillion. If there is a possibility of failure the problem is not retirees receiving too much in benefits, it is gross mismanagement by congress using the fund for other purposes than those for which it is intended to be used. The link above is worth reading i you're worried about it. There will always be those  who oppose the system. One man I was talking to called it welfare program before realizing I was a retiree. I believe that the social security system is what saves the country from a total collapse of our economy. Those benefts we recieve  are money that goes straight back into economy. I can't imagine the number of businesses that would fail or jobs that would be lost if not for the money we spend. AARP definitely should take a stand for preserving  SS!. If we are concerned, we should  cast our ballots for senators and representatives who will increase our benefits and eliminate tax breaks for people who have money left in their bank account at the end of the month.

    Contributor ⭐⭐
    August 29, 2024

    The president can’t dismiss taxes on social security it must go through Congress. I feel if they can’t agree to end taxes on our benefits then they should at least consider increasing the tax table for inflation. It’s been 40 years for the 50% and 30 years for the 85% since the laws was past with no adjustments.

    Contributor ⭐⭐
    September 14, 2024

    AARP would never support anything President Trump supports even if it benefits the elderly! Very sad that AARP is so politicized!

    Im curious to see how they will spin it though!

    Contributor ⭐
    February 28, 2025

    If you vote not to have taxes on social security, understand that you will be drying up social security because social security is funded by taxes. If you have not axes on it, it is estimated that the fund will run out of money in 5-6 years.

    GailL1
    Community Champion ⭐⭐⭐
    February 28, 2025

    @MichelleS55732 

    Yes, your are right about the taxes but I don’t know about the timing of insolvency.

    In 2023, taxes on benefits added $ 51 BILLION to the Trust Funds and the WEP/GPO elimination passed at the end of last year is gonna cost the Trust Fund a minimum of $ 200 BILLION and that is low - so yes, the Trust Funds are bleeding money all because Congress wants to look good.

     

    Think, folks, Think !!!  

    IT‘S ALWAYS SOMETHING . . . . .. . . . Roseanne Roseannadanna
    roachme
    Contributor ⭐⭐⭐
    March 1, 2025

    @GailL1  Everything I've read bases the $200 Billion on the additional benefits paid to people who applied for benefits that were reduced by WEP or GPO.  I don't think it includes the people who never applied because they were told they wouldn't receive anything, or people, like my wife, who never applied for spousal because we knew the benefit would be zeroed out by the GPO.  Personally, I believe WEP/GPO were both valid reductions in SS benefits.  The people who are eligible for their own SS mostly paid less than half of the SS FICA taxes a person who worked 35-50 years paid.  My wife paid a little over $3500 in SS FICA taxes in her lifetime for her first 9 years working and military service before government service.  Her FRA amount, without WEP applied, would be about $650/mo so she would've collected all taxes back in 5 months and over $125K more over her lifetime.  WEP would've made that payment about $150/mo or less.  Now with WEP/GPO gone she can collect spousal on my record, which is substantially more. GPO zeroed out any spousal and survivor benefits because her pension is twice the amount of my SS.   Now when I die, she gets my full benefit plus her own pension which could grow to 2.5 times my SS by the time I die.  By 85, she could collect over $400,000 in spousal support alone without any COLA, and over double that if I died tomorrow because I have a 9% DRC.  I don't think the GAO figured people like her into their cost factor for the WEP/GPO elimination.  All I can do is shake my head at Congress' utter ignorance on what they were doing.