What Trump is tapping into is widespread ignorance. Of course, the “no tax” deal is already done, which, of course, is not what it claims to be.
- Most Social Security is not taxed and even when it is counted as taxable income no tax may actually be pay
- People pay taxes into Social Security, not toward their own account or ultimate benefits
- Many Social Security beneficiaries like nonworking spouses, ex-spouses, surviving spouses and children and people disabled from birth never pay a penny in Social Security taxes. That’s why it’s insurance.
- What people pay into the system has nothing to do with the benefits they receive.
- The great majority of recipients receive an amount in benefits exceeding what they paid in taxes within six years of beginning SS benefits. Many also receive an amount also exceeding their employer taxes as well.
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