Eliminating Income Tax on Social Security: A Look at the Long-Term
President Trump’s intent to eliminate income taxation of Social Security benefits draws a lot of attention these days, especially among the population segment absorbing the impact of what many have called “double taxation.” As in many of the policy proposals advanced to change Social Security, however, there’s more to it than meets the casual eye. Kent Smetters, Boettner Chair Professor at the University of Pennsylvania’s Wharton School, has led an effort to analyze the proposal and its long-term effects and has contributed an article that models the impact on individual and macroeconomic levels. His conclusions are presented in a brief, which you can access here.
There should not be any tax on Social Security benefits and there should never have been one.
Russell
“As you’ve likely noticed, in his first few weeks of office President Trump has been focus largely on border security and illegal immigration, the war in Ukraine, and government waste and fraud, and we’ve not yet seen any overt signs of him working with Congress on the several income tax initiatives he suggested before the election. However, he is one of the few (perhaps only) politician who actually keeps his promises, so we expect we may hear something on his suggested income tax initiatives soon.
Rest assured that AMAC is solidly in his corner for this – indeed AMAC suggests completely eliminating income tax on Social Security benefits as part of our “Social Security Guarantee” proposal to ensure solvency of the Social Security program. For our part, AMAC will continue to advocate strongly for changes to how Social Security is taxed, and to ensure the Social Security program remains solvent for generations, and we expect to work with the Administration on these efforts. You can be sure that AMAC members will be among the first to know of progress on taxation of Social Security benefits.
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I recommend you contact your local congressman and ask him to support the elimination of the taxation of Social Security, or to at least vote to adjust the income limits for inflation. .
Sharon Kleczka, Social Security Advisor
AMAC Foundation, Inc.
The above is intended for information purposes only and does not represent legal or financial guidance. It presents the opinions and interpretations of the AMAC Foundation’s staff, trained and accredited by the National Social Security Association (NSSA). NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity. To submit a question, visit our website (amacfoundation.org/programs/social-security-advisory) or email us at ssadvisor@amacfoundation.org.