The Repeal of Taxes on Social Security
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- čas přidán 23. 07. 2024
- Will Social Security benefits be taxable after 2025?
For the second time, following its initial introduction in late 2022, a legislative proposal aims to eliminate federal taxes on Social Security benefits. The buzz around this development is palpable, as it promises not only to remove the tax burden from these benefits but also to significantly extend the solvency of the Social Security trust funds from 2033 to an impressive 2054. Furthermore, it's projected to reduce the federal debt by a staggering $8.9 trillion over the next 75 years.
In this video, we dive deep into the essentials of this proposal, exploring the dual nature of what it offers and what it can take away.
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⚠️I am not an attorney, SSDI advocate, or affiliated with the Social Security Administration or any other entity of the US Federal Government. I am a practicing financial planner, but I’m not YOUR financial planner and since I don’t really know you, I can’t give you advice. So please don’t take this video as specific advice for your specific situation. Consult your own tax, legal and financial advisors. 🙇🙇🙇🙇🙇
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Personally, I believe it's a good idea to greatly increase the withholding threshold for social security. I also believe that laws should be changed that allow s-corp business owners to shelter a lot of what should be income subject to social security withholding as a distribution instead.
Tax social security after working your whole life? Get fucked congress, the yield on bonds have decreased especially on the long end (30 and 10 Y) indicating that the demand is still there even if the supply remains huge showing a preference for safety. I'm still at a crossroad regarding whether or not to liquidate my $138k
Find quality stocks that have long term potential, and ride with those stocks. I have found it takes someone who is very familiar with the market to make such good picks
Well maybe they shouldn't steal from it.. see Eric wienstien, who explained the mathematical formula that he came up with.. they also take from the trust they just did it..
Unfortunately it will NEVER pass.
My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you never imagined to happen. It’s so difficult for people who are retired and have no savings or loved ones to fall back on.
True, It has never been easier to understand how to build your money after retirement than it is right now with the inflation, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investments, in my opinion, are complex.
Personally, I would say have a mentor. Not sure where you will get an experience one, but if your knowledge of the market is limited, it seems like a good bet.
I completely agree; I am 60 years old, recently retired, and have approximately $1,150,000 in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, having a portfolio-advisor for investing is genius!
@@mikegarvey17My partner’s been considering going the same route, could you share more info please on the advisor that guides you?
My CFA ’Gertrude Margaret Quinto’ , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
The abuse against seniors has to stop. The homelessness of seniors is disgracefully increasing in the U.S.
I’d venture to guess those seniors who are really struggling don’t pay taxes on their benefits now.
Anyone 62 or older and on social security can move into assisted living or a nursing home and everything is completely paid for. Everything. Remember that the next time you see a homeless senior, it's a choice. I work in a homeless adjacent industry and I ask homeless seniors every day why they don't go to assisted living. Guess what they say? They don't want to follow rules. They want to drink, smoke and do drugs. They can't take their dog. They won't be able to travel. They prefer the streets. It goes on and on like that. Seniors on the streets are making a choice. Let them...
Every once in a while, very, very, very rarely I have an elderly woman (never a man so far) take me up on it. Guess what? They are placed in a facility in about a month usually. Boom. just like that, problem solved. OMG the poor seniors... No!!! Its. A. Choice. They. Are. Making.
Homelessness is caused by high property taxes. Seniors need to be Exempted from property taxes just like in canada.
@@unpopularopinion9831 lmao,,when it's vaccine time for govt biogerms. You get first. When the Govt Nurse's Aide fresh out of Prison says it's Enema Time. follow the rules
Yes yes
We paid our taxes and don't need to pay more taxes. They need to pay back the IOU'S they took out !!!!!!
You didn't pay taxes on the employer's contributions
@@johngill2853 Already paid taxes on our income that went into our own contributions (50%) but up to 85% of the social security payout is taxable. Not exactly fair.
They do pay back as needed.
If it wasn't for the interest on the trust fund it would already be bankrupt
@@johngill2853right, but what should have happened is they figure out how to have the ER pay on their part instead of putting it on seniors and for crying out loud, raise the thresholds already! Those numbers are absurdly low and haven’t gone up since the law was created, yet everything else sure has gone up. At least 38 states don’t tax SS. Just find one that doesn’t make up for it in property and sales tax. LOL
And they need to give back the monies they’ve already taken out as taxes on Social Security beneficiaries. Double taxation is supposed to be unconstitutional, why is the government breaking its own constitutional laws.
There is no double taxation. It was not taxed when it was withheld it was just withheld. They can't give anything back because they have already spent it on endless foreign wars and on illegal immigrants.
Maybe because they know things most of us are unaware of? There are Two Constitution that I know of and Ive recently heard that there is actually three, so..
lol, that’s a good one😂
I am not sure how it reduces the Federal deficit. I thought Social Security was independent of the Federal budget. Any "running out of money" had to do with Congress "borrowing" from Social Security. Am I incorrect?
Double taxation happens all the time. Everything you buy and pay sales tax on is bought with money that is already taxed from money withheld from your paycheck to pay federal and state taxes.
These wicked politicians would never cut their purse! The seniors have been bull dozer over and over by these wicked self serving deceitful folks!
HOW DO WE TRULY BENEFIT FROM THIS MOST OF US DO NOT HAVE TO FILE FEDERAL TAXES THIS IS ALL JUST SMOKE AND MIRRORS. WHY IS THERE A LIMIT THE RICHEST MUST PAY ON FICA TAX?.
But people keep voting them in, it will never end
@traybern must have hit a nerve of an undercover politician. You get the point SMART BELL!!!
The Death Express
When The Death Express rolls up to your door, the things that you’re doing, right or wrong you can’t do anymore! Life on earth is short at its best, for we all are facing the acid test.
So when writing the poem (of life) make it rhyme, and it must be written on the shores of time. We must write it by faith, though we all like to see. But we can’t write this poem in eternity, so don’t sit on your seat until you hear the beep, get up and start now, awake out of your sleep!
What am I sending on the other side?
Before The Death Express comes (those wheels) to give us our ride?
So get busy, do good, and get involved.
And when The Death Express comes, your problems will be solved. Slow down; slow down, so that you may learn, don’t run ahead of our leader, you don’t know where to turn. Learn how to give, how to bear, how to share, Learn how to do good to men everywhere. Now you can watch for the signs as we go. Stay under the blood of Jesus, that washes white as snow. .
When The Death Express rolls up to give you your first ride, who is your escort, with a heart full of pride? Too proud to listen, too stubborn to hear, But Wait! Those wheels, those dreadful wheels are rolling near. There’s an escort for every one and who will yours be? I want Jesus in the Holy Ghost to escort me! Speaking of space, there’s room to spare, for this train picks up men everywhere. It transport the rich and it transports the poor. It drops off one generation and returns for more.
Those wheels, those dreadful wheels, those death wheels. Let’s face the facts now, and turn around. For why would you let sin forever hold you down? Repent, quit, be baptized in Jesus Name for remission of sins, receive the Holy Ghost and He will escort you in!
@@guess2899
As long as people believe and obsorb their lies it will indeed continue.
Taxing SS is literally double taxation without representation…
File tomorrow if you can…
Exactly the point I was going to make! Absolutely obscene to double tax seniors!
"taxation without representation"
Seniors can vote so they are represented.
@@geo8rge Voting is a ruse but whatever
SS by itself is already non taxable.
Filing before official retirement age while still working full time or making more than about 21,000 a year part time is a bad idea- you get ZERO dollars
I already paid taxes on the money taken away away from my paycheck for Social Security.
You only paid about 15% of what you get back! Except, they forgot to mention all of the non-paid interest,
that you didn't get on your contributions, in forty years of working!
@@kbbkbbkbbkbbkbb It’s close enough. The clever math tricks they used to justify taxing SS should have never happened and probably wouldn’t have except the $ designated for SS were mismanaged and had to be replaced somehow. so…..let’s try to justify how to tax them again. I could have and would have managed the money they took out of my check much better. Don’t forget the magic of compound interest and time. All the while they get rich while in office (funny how that happens) vote themselves raises and great benefits and spend tons of money on pork and giving it away overseas while our own citizens struggle. Our country is more than broke, they are in so much debt they can never pay it back. Great job running the country.
but you didn't pay taxes on your employers contribution (50%0
@trayberntaxes fund our government. In the USA we get to know the details; in most places the taxes are all hidden.
Do not forget you were also taxed through your career for Medicare. Yet we pay for that every month. Our government are nothing but thieves.
Unfortunately this bill will never pass. Politicians on both sides are too corrupt.
TRUTH: Republicans are against it. Period. Democrats support this law. The two parties are NOT the same.
The democrats will pass it if the republicans don’t attach a tax cut for the billionaires with it like they always try to do
If you listened to the whole video, you'd know that this is a plan to eliminate the cap without increasing benefits. High earners are already covering the low earners portion - the payout to pay in ratio only benefits lower middle to lower income. IT IS ALREADY A PROGRESSIVE TAX. Frankly, you'd do better to have a forced investment.
@@globalfamily8172 A forced investment would not work for disability. Then, companies, like Vanguard and Blackrock are running Hollywood, so whomever controls these forced investments would wield enormous power.
Why don't the lawmakers get Social Security instead of a LARGE pension funded by taxpayers? With 20-25 years, a Member of Congress could retire with up to 80 percent of his or her salary.
I love everything about this except them being in office that long.
They probably passed a law to make that happen for them.
they get both
They get a retirement for ONE TERM also
They also get free medical care for life
Insult is added to injury when taxed Social Security also sets up liability to pay the IRMAA penalty. Tax by another name.
Exactly! This is like triple taxation! Tired of being screwed over by this f upped government!!!!!
People collecting social security earned every penny of that money, and they shouldn't be taxed on it twice. This country's disregard for its senior citizens is criminal.
And what of us that may receive less money out of the trust than we put into it? How is it fair to shift the tax burden onto us?
but they didn't 'earn' the money put in by the employers (50%) ..
because you can afford it if that happens .. @@SmallSpoonBrigade
It isn't taxed twice, what are you talking about? It isn't a Roth IRA where taxes are accounted for and taken on the front end. This generation of seniors has squandered our nations wealth and left their kids with massive amounts of debt that can never be repaid but now you want us to also fill in the tax gap for the largest generations income while we struggle to pay rent working on 1990's wages with 2020's prices?
Maybe you should have saved for your retirement instead of relying on the government to force me and my generation to support your lifestyles in your "retirement".
@@direwolf6234
Congratulations. That was the dumbest thing I’ve ever read on the subject.
I've always thought SS benefits should not be taxed, period. It's supposed to be a government benefit. In effect, it's how D.C. steals some of your benefit back.
Actually, like he said, the money we pay in SS taxes during our working lifetime only pays for about 15% [on average] of the benefits we receive over our retired lifetime. That's why the maximum we can be taxed on our retirement benefits [Social Security] is 85%, although most are taxed less than that.
@@mikeellement1567 - It is surprising how many people think that they actually funded all of the benefits that they receive. It is almost always the lowest income people that feel that the wage cap should be removed and benefits lowered for high income people - not realizing that it is those high income people that are actually funding low income benefits.
There is no Federal tax on your SS if that’s your only income.
You can thank Brandon for that..HE did it!
@@dianahshiflett8608 He did what ?
This isn't probably going to happen but it shows you how easy it is to fix.
But you'll have to wait to last minute for both sides to agree. Social Security isn't going away and can easily be fixed
SS income cap is stupidest idea I've heard in a while, with rich people stepping in they can easily fix deficit in SS fund.
@@kbbkbbkbbkbbkbb Here is my solution. My generation will never see our social security money. My generation inherited some 30 trillion in national debt. We are not going to pay more so you can look down on us from on high and live that comfortably retired life you think you deserve on the backs of the generation after you. Your generation allowed the politicians to use SS as a slush fund, you allowed our entire economy to be gutted, you associated even the most mundane jobs with college degrees and saddled us with an incredible amount of debt right as we started adulthood.
You made your bed and we have our own issues to worry about. Better get in good with your kids or get comfortable with the idea of living in a state owned retirement home.
I'll believe it when I see it.
Election year, buying votes with talk of a chance of getting something.
Don't hold your breath...
It won’t happen. Bills get proposed everyday, very few pass.
You won't ever see that. US govt is broke.
Thx Devin...its always something from my SSD to my VA Compensation...the hits keep coming!! As always its great to hear the truth and we all appreciate the time you take to share true knowledge of any and all situations we may be a part of...
The problem is government spending. Our politicians need to slash spending and start balancing our budget. If they don’t we’re going to see the USA collapse the way Argentina, Spain, Greece, Venezuela, and other wealthy countries collapsed when the government spent too much money for too long. Sadly every time I say that someone says, “It can’t happen to the USA. We’re too big. Those other countries were different.”
They are puppets, doing exactly as they are told.. robbing us blind. Agenda agenda
The collapse is under way by design and we are being replaced by foreign populations. It's happening now. Everything you have worked for all your life will be gone.
Ah yes, good old austerity that reliably leads to working class folks starving and freezing in the streets. Great idea! You're talking about a sovereign nation's budget as if it's as simple as a personal checking account. Like it or not, sovereign nations don't have those same limitations, because collecting debt from a sovereign nation is extremely difficult (if not downright impossible). That gives them leeway that you or I don't personally have with our creditors. The only real worry sovereign nations have on this matter is inflation and becoming indebted to more powerful countries that can invade them. If they control inflation and maintain a strong military, they can order their federal banks to credit depositors as much as they like.
@@AV57 The problem that hit those other countries was no one would loan them any more money. Their economies collapsed. Every single one of those countries used to be wealthy. They all borrowed and spent way too much money the same way the USA is doing today. And today those countries are all poverty stricken.
This is historical fact. Research it, you’ll learn that what I’m saying really happened. And then compare what happened to those countries to what the USA’s federal government is doing today. Unless we change what we’re doing the same thing will happen to us. It’s just a matter of time. Unfortunately too many people have the attitude that “It will never happen to the USA” and that’s going to be our downfall.
@@tscoff you’re confusing taking out debt from foreign nations to creating funds domestically at a centralized national bank. Sure, it would be a terrible idea to do what you’ve accused the feds of doing, but that’s not what the US federal government has been doing in any large measure.
And your fearmongering on this issue actively encourages your fellow citizens to assume that rather than fix any of the social programs that would provide them security, they are instead taking very risky investments on their own that very often leave them and their families financially ruined.
The annual SS COLA amount is always less than the actual increase in the cost of living.
There should not be taxes in SS at all.
It’s not taxed if that’s your only income.
@@Satjr35031 That is not generally true as the tax code is written. If single, once your SS benefit exceeds $50k your provisional income will exceed the $25k threshold for 50% of the benefit above that threshold being included in taxable income. Since that threshold is not inflation indexed that problem will only get worse over time as COLAs are applied and general benefit levels increase.
With so many deaths over covid there must be a some money extra in that bucket. Would love to see a study about it.
Good point
Why? It will only make you mad when you see it is going to illegal aliens and foreign governments
There is more math involved than that. Many workers used wuflu as a way to get a lot of time off work, plus workers in some sectors were forced out of work throughout the shutdowns. Less hours worked means less payroll taxes paid.
They are giving any extra (and more) to illegal aliens they are letting by the millions.
There has also been massive inflation so SS payments increased by a larger percentage.
It was Regan and Clinton who signed into law the taxation of SS. Both bills were voted on by both parties, before being signed into law. Now, I do not think SS should be taxed at all, it isn’t taxed if that is your “only” retirement income, but the people who managed to plan and have other retirement income, shouldn’t be punished either, by having their SS income part taxed.
Well explained Devin. Your knowledge of Social Security history is appreciated. They should “Raise the Cap” on earnings taxed.
Social Security recipients have been taxed on money they have contributed to the system since 1984 when Reagan signed the taxation. Now, the recipients really need it repealed as COLA increases haven’t kept up with the “real inflation” costs.
So your answer is to raise taxes on those that receive no benefit, but remove taxes on those receiving unearned benefits?
@@chiplangowski3298
The system is set up to receive benefits in your future when you are retired and have little or no income.
Those receiving benefits have contributed to the system their entire working years. They are not "unearned benefits". The question is whether those SS payments should be taxed.
@@chiplangowski3298
The system is set up to receive benefits in your future when you are retired and have little or no income.
Those receiving benefits have contributed to the system their entire working years. They are not "unearned benefits”. The question is whether those SS payments should be taxed.
They do, it gets raised every year in order to offset increases in the cost of running the program. The problem is that people are living longer and a larger portion of the income isn't being taxed due to the cap. Eliminating the cap should ensure solvency of the trust for several generations.
Nobody has paid into the social security "system ". Your money went from your pocket into a retirees pocket. There's no account with your name on it. Lastly, social security is a tax and not a per se retirement account.
Thanks for keeping us informed.
Thank you Devin for your response to my recent inquiry.
The information you provide is helpful and appreciated.
Every Social Security recipient and concerned citizen should pay close attention to what is being discussed by our representatives in government running for office in this upcoming election 2024.
Social Security is on the ballot. We should support the candidates that support Social Security.
Remember to VOTE !
Thanks again Devin for your insight on these issues.
MB
Thanks for creating a video on this bill. I heard about the title - which on face value sounded good to me. You did an excellent job explaining it along with the history of how they came up with the 50% and 85% rates. My view is they should never have added the 85% rate - we are being doubled taxed on our contributions. Or at least the ranges should have been adjusted for inflation.
we still need more in our monthly amount to make ends meet.
That money already been taxed from your paycheck when you was working
It’s a tax that’s taxed and taxed again when you spend it. The hole just gets deeper
The quickest way to do this would be to get rid of the income cap for FICA taxes
I agree.
Very nice of you to tax the man behind the tree.
Let me guess, you don't hit that limit.
The overwhelming percentage of Americans don’t hit that cap. All the way to 1983, most of the middle class hit the cap by August 15th. This was always called Social Security Day. Everyone got a raise on their paycheck for the rest of the year. I’m considered upper middle class now and most of my friends are also. None of us come within 30-40k of the 2024 cap. It’s ridiculous. They should eliminate the cap and stop taxing benefits.
@@susanbauer8095 so I hit the cap and I also already pay a big percentage of my wages in taxes. When I retire, I get less as a percentage of what I put in than most people. I actually support this as part of a comprehensive plan to fix SS that would include increasing the age over time and increasing the percentage slightly of what everyone pays. Everyone should contribute. Most high earners have worked VERY hard to get where they are and made sacrifices others chose not too. We pay almost all the taxes already. This program is supposed to NOT be welfare. It is already progressive enough.
Social security needs to pay full benefits to Social security recipients who also get a pension, instead of being penalized by having a pension from a job that you retired from !!!
Thank you
Absolutely. Being penalized for responsibly working to accrue a pension, should not be “rewarded” with more taxes.
If this is about gmvt workers NOT paying into SS for that and also working and paying SS on there second job, realize that SS has the bend-points, that is, the replacement rate is progressive, not flat. Folks at lower income get more than folks at higher incomes. The gmvt workers, but repealing WEP, effectively want to get a reset to 90% replacement on their second job. That does not happen for the rest of us. Don't be a victim, learn the math, and realize you get at least a 40% replacement rate, which is larger than our 32% replacement rate.
@@marypucci6814 It's not being responsible, it's being lucky. Most jobs do not provide a pension and even if they do, it's probably not a good deal. In order to get a pension, you typically had to work at the same company for many years. These days, you're unlikely to keep up with the other workers that job hop if you stay for the pension. There are issues with IRAs and the like, but they do have the benefit of allowing workers that do switch jobs to retain savings for retirement in addition to social security.
No it doesn't, Social Security needs to go. Funny how your type always says "I paid into the ponzi scheme so I demand my money" completely ignoring that it is my generations money that is funding your lifestyle and that we will never see a penny of that money. But you don't care, which is why we don't care.
Devin you're correct this is DOA.
Thanks for this report. It was informative.💯💯
Angie Craig comes from the state of Minnesota which STILL calculates taxes on social security benefits.
My husband and I have pensions and social security, both of which are taxed annually. Most middle and lower class seniors do not have pensions or much savings. As a result they are losing their homes, can't afford to upkeep their cars, can't afford food and some medications.
You can always count on elected officials to fleece to, whether they fleece you today or tomorrow. Legislators like her should be called out publicly for their deception and ousted from office.
Thanks, Devin. As usual, very good info
Great video and i really liked that dounut animation. I might just start my day with one!
Medicare part B, $180 which I have never used, leaves $900!
Cancel it
You will thank them when you DO need it. Both of my parents ended up in the hospital this month. One in skilled nursing now, other in rehab. Both 89 years old. Medicare is paying huge bills now for them. If you fall ill later in life, count your lucky stars you have Medicare.
Remove the $168K cap and have everyone pay their fair share. $10K to $100M. Problem solved.
If everyone paid their "fair share", low income people would pay much, much more. High income people already fund the benefits of low income people.
So the SS a higher earner will go up because if they are going to tax the amount over XXX the amount and years earned will be counted towards the SS benefits.
They are never ever gonna see it that way Chip, they are members of the tax anyone but me club.
I would show how SS in skewed towards the lower wage earners at the expense of higher earners but what is the point, they don't want to hear it. Intellectual honesty is dead in America
So I was trying to understand how a tax break could turn into more revenue for the federal government. Thanks for explaining that along with the tax break for seniors drawing SS, it is ALSO a tax increase for higher-wage earners.
At face value it sounds like the government is saying if you make really good money (over 168000) we'll stop taxing you at that point and let you get even more wealthy. However if you don't make really good money no break or no soup for you, you just got to pay.
The problem with that line of thinking is that your benefit does not increase one bit with more contribution. Say I make 200k a year, do you think I am going to get an increase in benefits for the added contribution above 168k? The answer is no. Your benefits under this system should be commensurate with what you have contributed over your lifetime. Also, when you die, the govt just scoops up the remaining money, which is theft plain and simple. Some have said SS is akin to a Ponzi scheme. The way they run it, I can't disagree.
They raise this small possible gain for seniors just before elections...Time & time again, with no real hope of passing the Bill into law. Funny how the tax increase gets passed each time.
The biggest part of the ss tax problem is they did not index the threshholds for inflation. Whenever the government does that, it is simply a dishonest way to increase taxes in the future.
As for raising the wage cap, unless it raises the max benefit it makes the ss system even more a rob peter to pay paul. Currently the benefit is capped at the wage cap. Below that cap it is only replacing 15% of the income. That means 85% of the tax paid today in that last bracket by people hitting the cap is used to subsidize low earners. Raising the cap without raising the benefit would mean 100% of the tax paid is subsidizing low earners.
Index NIIT, Medicare surtax, and home sale exclusion too. Lots of other things to inflation index while they're at it. Expensing business startup and organizational costs has been fixed at $5k since forever, and the $50k threshold forcing 15 year amortization has been fixed since, I think, the 1950s. De minimis expensing is fixed at $2500 (was $500 for decades) if you don't have audited financials, $5k if you do. Rather obnoxious, since the cost of that audit in most cases obviates any benefit of the higher expense threshold. I'm not even sure what the point is, other than to screw small private companies, since the IRS doesn't even care about or look at audited financials unless they're doing a full-on tax audit of your company.
Well said. I couldn’t agree more. It does not require a rocket scientist to figure this out.
Actually, the benefit is capped at BELOW the wage cap.
I worked at a crappy job 30 yrs just to get a great pension, which is a bit more than my SSA. Life is good now. If I understood correctly, the part about means testing and savings, lowering either SSA or pension would constitute a war in this country! I hope I misunderstood.
Thanks for your explanation.
This isn't tax revenue, since the source of income is the government itself. It is a rebate of benefits via an income-based means test.
I'd like to see the NIIT and Medicare surtax thresholds get an immediate inflation adjustment along with inflation-indexing starting this year.
I was wondering what the catch was. Eliminate taxes on benefits and it will reduce the deficit and push the insolvent date out 20 years? Not a chance without increasing the cap on paying into the system or some other way to offset the loss of the tax revenue.
Tax the ultra wealthy and make them pay their share. THAT would fix it -- and far more!
Why not eliminate the cap altogether? Most never reach it and those who do, get an equivalent “raise” towards the end of the year, when the deductions stop. For those higher earners, they wouldn’t notice the continued deductions for SS. This would provide additional funding for the system.
@@robertjohnston8290Absolutely. Get rid of the cap altogether. It would solve a lot of problems. If you’re making big dollars, you won’t even notice it.
@@robertjohnston8290 It would also create a potential for a larger future benefit for those high wage-earners who exceed that cap, since they don't currently receive benefit credits for those wages that exceed the cap.
By 1995 I had paid in enough SS for my retirement & someone else’s too. I worked for a company for 20 years & advanced to corporate management. What is shocking is by that time I retired I was paying in more to SS than I had grossed when I first started working for that company.
Your math doesn’t add up.
Retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My parents both spent same number of years in the civil service, but my mom was investing through a wealth manager, and my dad through the 401k. My mom retired with about 4.2 million, but my dad retired with roughly 1.8 million.
Mind if I ask you to recommend this particular manager?
Looked up her name and her website popped up immediately, interesting stuff so far, about to schedule a session with her.
JUSTICE MATTERS! We need More Fairness so that All can relax in old age! PEACE TO ALL ❤❤❤❤❤❤❤❤❤❤💪🦾💪🦾💪🦾💪🦾💪🦾💪🦾💪🦾❤❤❤❤❤❤❤❤❤❤
It's ridiculous that they want taxes on seniors!
Good stuff Devin!
I feel great---I am saving social security via the "Windfall elimination program"---paid in the 40 quarters in one state but my main job was not a contributor to SS I am reduced by 1/3--not a lot but the missing couple of hundred would sure help--I end up with 350 after the medical deduction-
As soon as I hear it will pay for itself or it will reduce our deficit, I know I’m hearing a lie.
Well when you hear something that you think's going to be good and then you say the word take away.
#1. Adjust the tax on social security benefits for inflation. According to an inflation calculator , that would be about 70,000 instead of 25,000 ( the current rate) for a single person. #2. Apply it to all income sources, not just wages.
Lift the cap completely for everyone!!!
ººUntil the year 1913 a man kept every penny that he earned. We had an army and navy, we had hospitals and police, we had banks, schools, colleges, vast railroads, subways, streets, highway, traffic lights and signs. We had dogcatchers, garbagemen and politicians. We had dams, bridges and ferry boats. We have always way had whatever we ever needed. So why do we need to be taxed ?
Really? How big was defense spending in 1913
We increased the size of the federal government,we the people did this by voting the way we did. We want the government to do everything for us. Look around and you'll see people who want big government at federal level
We did, but a lot of the services were provided by the privet sector health care was very basic we did not have complex and expensive treatments for disease such as cancer no interstate hi way sys and local roads were very not very good but the model a way a tough little car. Taxes are not bad but the largest percentage goes to the war machine, so how we spend it is more of an issue to me
K@@johngill2853
No, we did get taxed. It was simply that taxes weren't taken directly from the paycheck before you saw it.
All I know is that I worked hard for over 45 years and gave the government in taxes over a third of my earnings and now that I'm old and disable, I can't afford to pay my own rent. And a lot veterans have it worst than I do. @@johngill2853
I live off SSI along with mt wife. They refund us every year 100% of what they take out because we are below the tax level when adjusted. So we stopped the pretaxation of our benefits, and technically we pay no taxes on SSI.
That’s not social security
@@ws775 that’s not Social Security
SSI is not Social Security
You’re fortunate.
SSI, Social Security INSURANCE, insurance payouts are never taxed.....
Good information David - you referenced eventually there will be means testing - what is your opinion on the level of savings where soc sec benefits will be eliminated in the future?
how or maybe why is something called a tax..i e. employeers input of employees soc.sec. "tax" be deductable by the employeer ?
As someone who has made over the threshold a few times it seems like a good way to fund social security by raising or eliminating that cap. I have wondered why no one has proposed that yet.
It’s part of every proposal.
@ws775 Had nit paid attention. Thanks.
Not that many people would be affected, and so actual tax revenue collected would be minimal. It's mostly symbolic.
I maxed out about 30 years working in Alaska. I get near maximum SS benefits and with a pension my taxes are a lot less than when I worked. It’s crazy how much it went up over the years. In the early 1980s my coworkers and I used to max out by the middle of the year and then over the years over $100K. We worked in the oil field.
@@headlibrarian1996 - Thank you. You summed it up quite well when you say it is mostly symbolic. It would hurt a handful of upper middle-class wage earners while not affecting the truly wealthy that they think they are targeting.
That would be awesome.
thanks for sharing! I'm glad to see SS improvement law changes are being considered. Hopefully something will happen soon......I write my NY Senators and Congressmen often and demand that SS be improved. Our gov't has a bad problem of making plans to send money to other countries first - they seem to forget that us Seniors were the ones who made that money!
I have a Question for you, If you take the lump sum at the beginning of your lagers retirement. Does that count towards wage earnings. or is that part of retirement earnings ?
As it is now, this SS tax punishes lower income people. That 85% has been taxed before I am out of the 12% bracket.
I don't think much will happen, and I don't care that much if I pay more in taxes. This is a great country to live in.
You can send the U.S. treasury a check anytime you want to pay more in taxes. They will take it. I bet you won't.
the taxation amount should have always been indexed to inflation . That said, it punishes upper income people, not lower income people. It you don't know anything it's best to keep quiet.
@@jakemanchester5139 I'm grateful to live in this country. But I'm not stupid.
It's the usual single penalty. If married your brackets are so large you're still in the 12% bracket by the time you hit the 85% threshold.
Except you didnt put in anywhere near what you will take OUT, plus half the funds paid in were paid by your employers. According to their records I paid around $50,000 and employers paid around $50,000, and I would get around $1800 a month from SS checks before deduction for medicaid premiums, do the math and you can see even $1,200 a month is $14,000 rounded down and how in less than 4 years of collecting SS checks they will have "refunded" every dollar I paid in, another 4 years would cover the employers' half, so if you collect for 10 years you got way more back than you AND your employers paid in, and people are commonly living into their 90s
They hold the money we have paid in over the years and they spend it on all government bills. So why can't we charge them interest on our money they are holding and using?
They do pay interest.
The problem is that most people recover all they paid into SSI in about 3 years, then collect for the next 20-25 if they are lucky.
I have a question what about people who are young adults or adults who are not in the category of being senior citizens what is the situation on that
Thanks for the info
Currently social security is being taxed twice. Once when you are working and earn your money (payroll taxes are on the gross, not the net income) and a second time when you receive your retirement benefits.
You can thank/blame republicans and Reagan for that..
Social security is not part of the federal budget, never was. It’s an account set aside for your retirement that YOU pay for based on YOUR income.
Simple truth is that congress doesn’t have the right to touch the money. They have literally been stealing your money for decades to fund federal programs.
Ending the taxation of social security is just returning it to what it’s supposed to be.
It’s borrowed not stolen. They pay interest on the funds which are paid back as needed.
@@ws775
It’s not borrowed.congress has never put one penny back. And they don’t have any legal right to the funds. I used to work for social security. I know what they have stolen.
@@ws775 The IOU's are next to worthless Treasury bills, that's how Johnson got around the law preventing the use of SS trust fund money from being used in the general fund.
The cap should be much higher right now!!
In addition to that problem. There no boost or extra money going to People that on SSI ijs
Excellent analysis
If Social Security is your sole source of income it is NOT taxed by the Federal Government no matter how much it is.
If you have another source of income and you exceed the earnings limit, then part of your SS is taxed.
Some States tax your Social Security even if it is your sole source of income. And take even more if you have another income.
We are damned if we do and we’re damned if we don’t.
Actually, if an aged 70 high earner gets the max SS PIA and waits until 70, he can crest the income level (both single and married). That was a true statement some years ago or if you filled early and maybe on time, but it is no longer true if one waits to file.
@@charleslemaire8137 The taxation will depend on their provisional income . If they only receive SS then no Federal tax even if their benefits are $80,000.
@@Satjr35031 - Agreed. But we are getting there...
We should not have to pay property tax either
This would help a lot of people.
Net paycheck is approximately 50% of gross. Federal, state , city , county. , open space , property , ss. You place some in a 401k then the do gooders tax that when you are retired and need it.
I’ve been saying this for decades. Why tax social security benefits for seniors and then complain that seniors need a social security increase? Politicians are stupid. Seniors have been paying taxes their entire lives. Stop taxing them! Social Security was never meant to be a retirement plan but since it has become so, why not treat it like a Roth IRA in terms of taxes? Taxing social security to prop up social security is something only a politician could create.
When FDR signed the law authorizing FICA it was indeed intended to be a retirement plan as employers at that time offered NO benefits of any sort to their employees. Successive Democrat Congresses and Presidents, ending with the rape of the system by Johnson have turned it into the disaster we have now. Go read up on the history of the Federal Income Contribution Act sometime.
SS ain’t no ROTH…
Well done!
I was a 1%er in my working career, and I would have had no issue paying SS tax on all of my income.
But taxing productive, high earners more is counter productive. It's easy to always say just tax the rich but they are already paying ~60% of their income in high tax states like California, NY, etc. I'm not a high earner, I'm mostly retired, but I could work a lot more but it's just not worth it when the government takes almost half of every extra dollar I earn.
As an employee of the Social Security administration, I can tell you that this is actually a very good law. The top 1% of earners in America, who control over 60% of income in this country, are not paying any FICA taxes on any of it.
I paid almost $2500 in taxes this year...I started SS at my full retirement age of 66 and 4 months last April...
It's NOT right to tax people who are at an age where they are either unable or difficult for them to work anymore. And also, Medicare should be free too. The way we treat our senior citizens in the US is very disturbing.
OK I want to be absolutely clear here. I paid that money that I get back in my Social Security savings account for the first day I worked. I was forced to contribute. And I pay taxes on that money when I did. It's not a benefit let me be clear on that again, it is not a benefit. It is what I was forced to pay into and it's my money that should be given back to me. And I have strangers tell me how I get my own money backmakes me so angry.
How many times should my money be taxed?
ask a full time worker who has a second job yes there both Taxed , imagine being a single person who generally get no exemptions and are held to a healhty tax rate working one job at 40 hours and being Taxed fed and state then having a Part Time job working 20 hours that gets the double whammy , i guess they best at least hopefully be in a State that does not have a state tax the Gov is a dipping machine State , Federal, county , school , city and we havent hit the grocery store the gas pump yet
Bottom line is they will have a bigger AIME and receive a lot more in SS
Keep it simple, no caps on earnings at all. Period. Every Income earner whether they are making $100 or Millions should contribute. This solves the problem.
Actually that alone does not solve the problem.
Yes, everyone should pay 100% into SS
Flat tax rate of 10% for all...... .10 on up! No more deductions, that,s why the rich end up paying ZERO because they have losses. 99% of people cannot afford to have losses.
Any chances my future government pension is also tax free?
Why don't they tax the millionaires and billionaires their fair share?
spin.
Because the rich OWN the politicians, and they get what they pay for.
It's total BS to have to pay taxes on my SS which I do. From my point of view, HIgh wage earners should have to pay the same on their wages on a percentage basis as does the guy making 50 G.
The guy making $50k will receive more in SS benefits than they and their employer paid in. High wage earners already don't get back what they pay in. SS is an earned benefit, not a welfare system.
What about the 45 years plus of interest income on what you took from us in social security taxes
Not as much as you think.
i agree as i will pay tax but what about the people that put their money in roths? will they legalley need rebate?
You can thank Senator Joseph Biden (now, the "acting" President) who was an ENTHUSIASTIC supporter of taxing SS, raising the taxable portion to 50% and a few years later to 85%.
You could also thank don tRump for giving the rich and corporate America big tax relief. See how that works?
You can thank him because it shored up the SS. You have benefits now because of that.Remember the average SS benefit was $4,000 in 1983 and just over $7,500 in 1993.
I would like to see the $25,000 dollar threshold increased to $40,000 or $50,000. That would reduce the Federal tax burden on many seniors. These bills keep shooting for the stars and they never have any real chance of success. They are introduced for the political benefit of the writer. That way they can campaign that they are trying to do something for seniors. Am I being to cynical or is this what is really happening?
Must be making a great deal of mony on SS to even get taxed on it !
Mine isnt terrible but it sure aint enough to owe taxes on !
I dont even have any tax taken out to begin with.
What really makes me smile is ive already recived a lot more than i contributed over the 50 years i put in.
Im gonna get mine finally !
Been collecting since 2009
And got many more years to maybe.
4:06 people who hit the cap pay in more than they get out.
The taxable amount needs to go up, however you do it. No system is going to feel 100% fair. But any means of securing the SSI trust fund if it benefits the majority up and down the earnings scale thats a good thing
SSI is totally different.
@@ws775 I am referring to regular Social Security and the trust fund that is scheduled to run out of money. Social Security disability
I never made $168,000.
All my wages were taxed.
So the wealthy should pay also.
Don't sell the sizzle .
Do you have to pay tax on ss if it's your only income.
Big NO
Also my Medicare, comes off of the top of my Social Security. Which was a major shock to me. Also I was charged the first two years on what I made while employed, not what my actual earnings for the year, and a half year of employment. This was due to some wrong information from visit to the Social Security Office. None of this overpayment was recoverable. Correct way to do a slightly over estimate of my retirement year earnings.