proposal to change SS taxing


I support this bill. Used to be SS was not taxable, until Democrats started complaining about millionaires getting tax free benefits, and as usual when Dems go after millionaires, everybody got caught in the taxing frenzy. This would take it back to what it should have been all along.

I also have no problem with the higher incomes being subjected to the 6.2 % tax. It might catch a couple of you guys though.

Yes, I caught that it is sponsored by a Democrat. I thought it very ironic to have a Dem sponsor a bill titled “you earned it you keep it”. But I never said EVERYTHING any Democrat did was wrong. Just most of it.

(02-21-2024 04:24 PM)OptimisticOwl Wrote:  proposal to change SS taxing


I support this bill. Used to be SS was not taxable, until Democrats started complaining about millionaires getting tax free benefits, and as usual when Dems go after millionaires, everybody got caught in the taxing frenzy. This would take it back to what it should have been all along.

I also have no problem with the higher incomes being subjected to the 6.2 % tax. It might catch a couple of you guys though.

Yes, I caught that it is sponsored by a Democrat. I thought it very ironic to have a Dem sponsor a bill titled “you earned it you keep it”. But I never said EVERYTHING any Democrat did was wrong. Just most of it.

Thanks for posting that OO. It’s an interesting concept…and I had to think hard on it before I understood it.
It would be great if retirees could put more of their SS earnings in their pockets. Especially since SS is becoming even more important to so many older people who rely on it as their only source of income. Of course this butts up against the stark reality of the inexorable rise in overall entitlement spending we are experiencing.
You may have read a recent article by a bi-partisan (I think ) group advocating for the elimination of the tax-deductibility of 401k contributions. (Not the tax free growth if those contributions while still in the 401k). Apparently, its popularity is waning and the big effect for 401k programs is not in their tax free contributions, but in the automatic enrollment. And eliminating 401k contribution deductibility would save almost 1% GDP equivalent ( who knew?).
It’s a huge challenge going forward. How do we secure the safety net for retirees, especially the least well off, and at the same time start to slow the overall growth in entitlement spending. SS, MC and Mcaid.
Personally, I think a good start would be some sort of means testing.

(02-22-2024 11:36 AM)greyowl72 Wrote:  

(02-21-2024 04:24 PM)OptimisticOwl Wrote:  proposal to change SS taxing


I support this bill. Used to be SS was not taxable, until Democrats started complaining about millionaires getting tax free benefits, and as usual when Dems go after millionaires, everybody got caught in the taxing frenzy. This would take it back to what it should have been all along.

I also have no problem with the higher incomes being subjected to the 6.2 % tax. It might catch a couple of you guys though.

Yes, I caught that it is sponsored by a Democrat. I thought it very ironic to have a Dem sponsor a bill titled “you earned it you keep it”. But I never said EVERYTHING any Democrat did was wrong. Just most of it.

Thanks for posting that OO. It’s an interesting concept…and I had to think hard on it before I understood it.
It would be great if retirees could put more of their SS earnings in their pockets. Especially since SS is becoming even more important to so many older people who rely on it as their only source of income. Of course this butts up against the stark reality of the inexorable rise in overall entitlement spending we are experiencing.
You may have read a recent article by a bi-partisan (I think ) group advocating for the elimination of the tax-deductibility of 401k contributions. (Not the tax free growth if those contributions while still in the 401k). Apparently, its popularity is waning and the big effect for 401k programs is not in their tax free contributions, but in the automatic enrollment. And eliminating 401k contribution deductibility would save almost 1% GDP equivalent ( who knew?).
It’s a huge challenge going forward. How do we secure the safety net for retirees, especially the least well off, and at the same time start to slow the overall growth in entitlement spending. SS, MC and Mcaid.
Personally, I think a good start would be some sort of means testing.

Getting rid of the tax deductibility of 401(k) is just another ploy by the government to keep people from gaining financial independence quicker and become more levered to the government's spending habits or to the Treasuries that Social Security funds are invested in. The government refuses to cut spending, so it's looking for new ways to create more tax dollars to piss away.

Even if all additional tax dollars earned by this practice go straight to social security (which they won'ts), this idea is just bailing out people that have the opportunity to save and invest in a 401(k) / 403(b) account (and control how their money is invested, unlike social security), but refuse to do so. I have no sympathy for those people, especially when there are so many in this country that do not have access to these plans and unfortunately only have the IRA as a way to save and invest money tax-free.