Wednesday, September 18, 2024

SS tax

Not taxing social security benefits would be of great help to retirees who have pensions. For example John and Mary Smith are both age 65 and collecting SS. John gets $2,400 per month from SS and has a pension of $2,000 while Mary gets $1,200 from SS and has a $800 pension. Under current law they will pay $1,584 in federal income taxes. Remove tax on SS and they own no tax. To help narrow the wealth gap such a plan should be limited to people whose income, not counting SS, is less than $100,000 for singles and $200,000 for married.

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