Tax

The proposal to remove taxes on social security benefits should not stand alone but must include other changes to make up for the lost income. This will not affect 60% of recipients who do not pay any tax because their income in too low. This will cost the government about $50 billion per year and should be recovered with other changes. Currently people pay 6.2% of earned income into social security on the first $160,000 of income. If this income limit were removed it would bring in about $90 billion per which would more than offset the loss from not taxing benefits. This would also transfer money from high income earners to lower income groups which would help to reduce the income gap. It would also add more money to the social security fund something that is badly needed.