New bill to eliminate tax on Social Security more of a shell game
“You Earned it, you Keep it.” That sounds like a bill everyone could get behind. Or is it? Tracey Porpora explains this bill introduced by Rep. Angie Craig (D-MN). Eliminating income tax on benefits does create less income for the trust fund. This bill recommends paying for the revenue deficit caused by removing taxation from Social Security benefits by increasing the annual income cap (currently $147,000) for anyone earning more than $250,000 per year. Note, if the bill passes, some high income earners could see an increase in taxes. Thus it could be considered a shell game and of course the bill does nothing for Social Security’s long term insolvency problem. Full article on Silive.com is here.
The Association of Mature American Citizens (AMAC) believes Social Security must be preserved and modernized. This can be achieved with no tax increases by changing cost of living adjustments, the retirement age, and delayed credits. AMAC advocates for a bipartisan compromise, “The Social Security Guarantee Act,” taking selected portions of bills introduced by former Rep. Johnson (R-TX) and current Rep. Larson (D-CT) and merging them with the Association’s own research. One component is Social Security PLUS, a voluntary plan to allow all earners to have more income at retirement. This component is intended to appeal especially to younger workers. AMAC is resolute in its mission that Social Security be preserved and modernized and has gotten the attention of lawmakers in DC, meeting with a great many congressional offices and their staffs over the past several years. Read AMAC’s plan here.
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