End taxes on Social Security?

Observations on life, Social Security 3 comments

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.

3 comments

  1. Too logical and too complicated Jack.
    Of course, anything that reduces the income tax revenue going into the trust needs to be replaced.
    Hey, many people are convinced that revenue goes into congresses millionaires fund. 😩

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    1. Too complicated?

      Confirm for me how your taxes were calculated (show me the calculation) on your Social Security benefits (including years where perhaps you didn’t pay any income taxes) for every year since you retired and commenced benefits. I don’t believe you can do that in less than 30 minutes per annual 1040 filing (I know I cannot) – which, given our ages, likely means 10+ hours for each of us. And you think my simpleton concept of refunding contributions first is too complicated? Maybe, in a vacuum. Compared to the process in place since 1983, not so much.

      I received an electronic notice of my annual Social Security statement on April 6th – as I am still working and paying into the system (SECA these days). It shows, some years in summary form, all of my reported income and the cumulative amount of taxes/contributions I paid as a worker, and the tax/contributions paid by my employers (including me as self-employed).

      Obviously, they have the data to do it my way, my SUPERIOR way – SUPERIOR IN EVERY WAY – transparent, logical, “fairness”, etc. SUPERIOR, also in terms of appreciation for the Social Security system. And, SUPERIOR in terms of shutting up the idiot ass Trump and the Republican and Democratic liars in Congress, past, present AND future.

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