Taxation of Social Security Benefits Likely to Remain Unchanged
In the wake of the Tax Cuts and Jobs Act’s successful passing, it appears that the unpopular taxation of Social Security benefits will remain in place. As explained by The Motley Fool’s Sean Williams, repeal of this 35-year old provision is even more unlikely at this point, since the revenue generated by this provision, although slim in relation to overall Social Security revenue and spending levels, is viewed as crucial to the solvency issue faced by the program. Read Williams’ analysis of the situation here…
Note that AMAC‘s Social Security Guarantee legislative framework now in play in Washington has taken a position on this issue. Section III.3 of this framework (access the document here) calls for action to “Reduce “Double Taxation” of Benefits - Raise the adjusted gross income exclusion threshold for paying income tax on benefits from current $25,000 for individuals and $32,000 joint to $50,000 and $100,000, respectively.” You can play an active role in support of the AMAC proposal by contacting your Congressional Representative and directing their attention to the Guarantee and its provisions.
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