What is the “You Earned It, You Keep It Act?” - AMAC & Yahoo Finance
Serah Louis explains a bill being reintroduced in the House by Rep. Angie Craig (D-MN) dubbed the “You Earned It, You Keep It Act.” It would repeal the taxation of Social Security benefits, while also extending the program’s solvency by 20 years. Currently about 40% of beneficiaries must pay federal income taxes on some of their benefits, and the threshold has not been adjusted for inflation since 1993. Any cut in taxes, though, is also lost revenue for the Social Security Trust Fund. So, Craig’s bill levies the comboned 12.4% payroll tax on wages over $250,000. Currently, payroll taxes cease at $168,600 in annual income. Read the full article here.
As an example of the leading thoughts on reforming Social Security, the Association of Mature American Citizens (AMAC, Inc.) believes Social Security must be preserved and modernized. This can be achieved without tax increases by slight modifications to cost-of-living adjustments and payments to high-income beneficiaries plus gradually increasing the full (but not early) retirement age. AMAC Action, AMAC’s advocacy arm, supports an increase in the threshold where benefits are taxed and then indexing for inflation, and calls for eliminating the reduction in people’s benefits for those choosing to work before full retirement age. AMAC is resolute in its mission that Social Security be preserved for current and successive generations and has gotten the attention of lawmakers in D.C., meeting with many congressional offices and staff over the past decade.
This bill is long overdue and I hope everyone in Congress supports it. I hope AMAC also supports this bill and lobbies for its passage.
Mark:
Thank you for the comment. Our AMAC Action affiliate is charged with reviewing legislative activities and making the final decision on whether to support or oppose specific bills; we will forward your note to their staff for consideration.
Gerry Hafer
National Social Security Advisor
The AMAC Foundation
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