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Wow – a proposal to save Social Security AND end double taxation? This is probably gonna fail . . .

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Photo above – Should President Biden address the nation on Social Security reform? He and Jill currently collect $50,000 a year in social security benefits, as well as his $86,000 retired Senator pension, plus holding an IRA, 401K, TIAA-CREF retirement account, a 401(A) account (different from 401K), and a Delaware school system pension AND of course his current presidential salary of $400,000 annually. If he ever retires from the White House Biden will begin collecting an additional $230,000 presidential pension, on top of everything else.

I'm looking forward to collecting Social Security. My mom already gets it. But the fund is supposed to fall off a cliff in 2034. Taxes will need to go up, benefits will need to be cut, or the retirement age raised. Probably some combination. Representative Angie Craig is focused on the tax angle. Is her proposal dead on arrival?

Even before I learned that Ms. Craig (congresswoman from Minnesota) was a member of some obscure “democrat-farm-labor” party, I suspected there might be problems. Saving social security is one of those things most politicians in DC salute, then find a way to delay, table, amend, or outright cancel. Both Democrats and Republicans. Because this bill is sponsored by a 4th party candidate, there is no natural constituency in congress to rally around it.

In a nutshell, Ms. Craig wants to begin applying the 6.X% social security tax to earnings above $250,000. And wants to end income taxes on retirees' social security monthly benefits. I bet a bunch of you didn't even know your mom dad WERE getting double taxed. First income taxed on their earnings in the working year they had the Social Security tax withheld. And again, when they get their checks, giving that money back.

Here's where some problems crop up. The current social security tax threshold is $168,000. You pay withholding on income up to this amount. Congresswoman Craig proposes leaving a “void” between that level and $250,000. A zone where no social security withholding would be collected. Taxes would resume again above $250,000. Why does Ms. Craig do this? She doesn't say, so I'm going to invent an excuse for her. “Because senators and house members earn more than $168,000, but less than $250,000”. Start your yelling and screaming now, if you think I'm wrong. And come up with a better reason for this weird income exclusion.

Someone else is going to start screaming that “the rich” can afford to pay income tax on social security once they turn 65-ish. But most people aren't rich, and those folks are currently taxed on 50 to 85% of their gross social security monthly check. Yes, it's complicated. Yes, congress made it that way deliberately, because they want our eyes to glaze over. Your mom would like Washington to stop taxing her social security benefits. If you don't believe me, then just ask her. She probably already has a list of what she could spend the extra $100-$200 a month on.

Whether we admit it today, or tomorrow, or after the 2024 election, something will have to be done about social security. Let's have the conversation now, as part of this year's election. Let's debate if we want to raise the retirement age (again); cut benefits around 20% (which is worse than the tax hit on benefits); simply raise the social security rate way higher than 6.x% – with or without the flakey “gap” between $168,000 and $250,000.

In fact, let's ask President Biden his views on Social Security. He collects at least $50,000 in annual benefits, in addition to all the other loot enumerated at the top. Pres. Biden was just dissed by his own special prosecutor as having symptoms of senile dementia. Let's ask Pres. Biden to address the nation on Social Security, without a teleprompter, and take questions afterwards. Maybe we can kill two birds with one stone here . . .

I'm just sayin' . . .

Win-Win: Reintroduced Bill Could Eliminate Taxes on Social Security Benefits And Extend The Program By 20 Years (msn.com)
 
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