Trump: No taxes on Social Security

Already posted...
Looks like a bit late (about a day) with this topic:
http://www.politicalforum.com/index.php?threads/trump-no-taxes-on-social-security.620566/

Anyway, on-topic:
I will just repost what I posted in the original thread:
Horrible idea...
Blatantly obvious attempt to pander to.older voters...
Epic fail...

 

$44K is just about the top SS benefit. Meaning that the recipient was making decent money when they retired.

 

It used to be that way, up to 1983 when Ronald Reagan signed into law taxing the SS payments received.

The main problem today is that the threshold for taxing SS has not changed with inflation. It is still set at the 1986 levels of $25k and 32k respectively, and 85% for MFS. This has brought in more tax revenue, especially for those retirees who bring in income other than SS and are now required to receive SS based on their age.

But it does not solve the debt problem and the Republican Study Committee has drastic cuts for SS. I think this is more of a smoke screen on what the Republican Study Committee has proposed and does not want that issue to be debated. Trump is trying to change the narrative, but I am afraid the cat is already out of the bag.

Here is the FY 2025 GOP Study Committee Budget:
https://hern.house.gov/uploadedfiles/rsc_fy_2025_budget-section_by_sectionfinal325.pdf

Here is what it says with SS:
"Spending on Social Security will grow tremendously between FY 2023 and 2034, from nearly from $1.5 trillion to $2.5 trillion The RSC Budget is committed to preventing 23 percent across the board cuts in benefits that will hit every Social Security recipient in 2033. Unlike the Biden budget, which does nothing to prevent these cuts, the RSC Budget would phase in common-sense, bipartisan reforms that have been narrowly tailored to affect no senior in or near retirement. These reforms would collectively stave off Biden’s 23 percent cuts to Social Security benefits and eventually make the retirement trust fund sustainably solvent. These include modest and delayed changes to the Primary Insurance Amount (PIA) benefit formula, the retirement age, auxiliary benefits for high-income earners, and gradually moving towards a flat benefit. President Biden supported similar reforms during his tenure as Senator and none of these changes would affect anyone in or near retirement."

Increasing the retirement age might work, but increasing the Primary Insurance Amount formula and a flat benefit amount, which will hurt more poor and middle Americans than the upper incoem bracket. Not a good plan MO and will not pass either the House or Senate, even with GOP control.

 

I must apologize for the disagreement, but as a baby boomer myself, I can say that every baby boomer I'm acquainted with supports Trump for POTUS. Perhaps it would be best not to generalize opinions about all baby boomers.

 

it was enough for most of them to have you point out that SSA wasn't taxed until Ronald Reagan got it taxed in 1983. You are correct, of course!

One must give Reagan credit for the adjustments in FICA/FUTA, and the revisions to the retirement age (not convenient for me at the moment!), that allowed the Trust Fund to be stabalized.

The most effective solution is to raise that payroll tax rate slightly, emiminate the cap on maximum taxable income, and look at pushing the retirement age past 66.5.

Variations of these ideas have been proposed many times over the least twenty years. The numbers work, and the impact is the best on could hope for.

 

Someone getting 44K IN INTEREST is rich.

To get 44K in INTEREST (assuming a very fat 7% annual return) means the investment itself is worth something in the neighborhood of 650,000 that they never have to touch to get the 44,000
So there income is 44,000 but their NET WORTH is almost 1,000,000

 

Yes, making social security payments tax free.

 

Have Kamala roll this out as her social security reform plan. I would be curious as to the reception.

 

Great idea. I'm getting a much better return on my private investments, so that should compensate for the losses that the nomenklatura in Washington have cost me by forcing me to pay into their government-run Ponzi scheme/slush fund.

 

Has this "Humpty" thing caught on yet? It seems you are the only one I've seen who uses it and I confess, I don't even get it. Must be Aussie humor (excuse me, humour).

 

I'm aware of the doomsday clock that social security is facing, but are you saying that federal income tax on social security income goes back into the social security trust fund? If so, I wasn't aware of that.

 

An interesting topic for another thread, but how much would you have to raise the Medicare portion of FICA to pay for that?

 

An article on the proposal

Donald Trump calls for elimination of tax on Social Security

Taxation on Social Security dates back to a bipartisan reform measure signed into law by former President Ronald Reagan in 1983 that was intended to shore up the solvency of the program’s trust fund. Generally speaking, there is a tax of up to 50% tax on one’s Social Security benefits if total income is between 25,000 and $34,000 – and up to an 85% tax on benefits when income is over $34,000, according to the Social Security Administration.

 

If I had that level of sway on government things would be vastly different

 

Or just maybe, that is common sense policy as many seniors struggle on fixed incomes... especially with this high inflation tearing them apart!

 

I don't know if that's wise. Taxes in Social Security would need to be compensated for in some other way. And the Republicans FAVORITE way to compensate for any tax cut is to look at Medicare and Social Security. So eliminating taxes and cutting benefits does not sound like a great idea. If it weren't SS benefits that are cut, payroll taxes would probably need to be increased. Which means salaries would have to be increased, which means... inflation. And if you DEPEND on social security and Medicare, you don't want inflation. If you don't depend on those, which are usually the folks that are taxed, it won't matter much of a difference to you.

It sounds great as a campaign slogan, but Trump is not going to tell you HOW he will do it. So you can lay that down to rest. It's just demagoguery.

 

The only person baby boomers want to vote for less than Trump is any Democrat.

 

You do know payroll taxes PAY FOR Social Security benefits, right. And Medicare as well. Surplus FICA in the late 90's "helped pay for Clinton's 'surpluses'"

 

it would be cheaper than buying separate insurance for that 20%

 

I think you are the one confused. @Endeavor claims uncapping FICA contributions and applying it to all wages and salary in order to get the rich will fund SS till the end of the century. As I note capgains, which is the bulk of income for the high earners, are not subject to FICA contributions. So yes you are correct FICA has nothing to do with capgains but incorrect that I was claiming otherwise. And of course they don't pay to keep the lights on in Alaska of all places.

 

And where do you make up the shortfall SS is already going insolvent?

 

Only 40% or recipient's have to pay any tax and that is because of other investments and income which they would still have to report.

 

Why are they struggling of fixed incomes?.......................because of Biden inflationary policies. Let's just end those.

 

When do I get some of this money to pay by light bill I certainly haven't seen it nor do I see where our local power generation is getting any of it? Why do you oppose federal welfare to poor blacks you haven't said yet? Shall we end all federal welfare is that what you are seeking?

BTW you can send some of this back in the meantime

Which States Use the Most Federal Aid?

The federal government grants billions of dollars to state and local governments. These grants comprise a sizable portion of these smaller governments’ budgets. The federal government provided almost $1.3 trillion in grants to state and local governments in 2021, an increase of over $400 billion since 2019.

• California received the most from the federal government, $162.9 billion, followed by New York ($110.2 billion), Texas ($105.8 billion), Florida ($58.8 billion), and Pennsylvania ($57.1 billion).
  

https://www.onfocus.news/which-states-use-the-most-federal-aid/

 

So let’s raise the amount before they start getting taxed, we don’t need to give a tax break to Donald Trump or Warren Buffef.