Congress May Finally End a Controversial Tax

(LibertySons.org) – Wage earners contribute a significant portion of their regular earnings into their Social Security account. It’s anticipated that in the next few years, a higher percentage of beneficiaries will be paying taxes on their income from the program. More than half of current beneficiaries are already doing so. Lawmakers are hoping to end that controversial tax.

According to Newsmax, up until 1984, when a bill changed regulations, Social Security benefits were exempt from federal taxes. The new law required those with incomes up to $34,000 to pay taxes on up to half of their benefits.

Anyone making over $34,000 was required to pay taxes on up to 85% of their benefits. When joint filers hit $44,000 or more in income, they had to pay taxes on up to 85% of their Social benefits. Most recipients are now paying a sizable portion of their earnings from the program in taxes, with the average senior income at $47,620.

That sure would help a lot of people struggling to make ends meet. Hope it happens.
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New Congress May End Taxing Social Security Benefits https://t.co/hZpts6yDOE

— Darkhorse (@Houston843) February 28, 2023

Opponents of the law claim that seniors are paying double taxes since the benefits were funded by taxes already paid and because the income levels were set in 1984, modified in 1993, but never adjusted for inflation. Congress has grown increasingly worried about the taxes’ rising impact on seniors and the refusal to change them for inflation.

As a result, legislators recently proposed legislation to eliminate federal taxes on Social Security. The “You Earn It, You Keep It Act,” which would do away with federal taxes on the benefits, was introduced by Representative Angie Craig (D-MN) in 2022.

A similar measure, the “Senior Citizens Tax Elimination Act,” has also been sponsored by Republicans under the leadership of Rep. Thomas Massie of Kentucky to end the double taxation of Social Security income. Massie will likely resubmit the bill in the 118th Congress as Republicans currently have the majority in the House.

~Here’s to Our Liberty!