Thanks to one of Reagan's "tax reforms", seniors must pay income tax
on part of their Social Security... and part of that law from back in the 80s
to calculate that senior tax burden is a dollar amount that was NEVER to be
increased with inflation.
That is ironic since it was Reagan who indexed the tax tables to begin with. The tax on social security benefits were more than offset by cuts to income tax rates. Only 50% of social security benefits were taxable at a maximum rate of 28% (i.e. a maximum 14% tax on social security benefits for retirees making over $100,000 in supplemental income). That is preferable to a 70% tax on supplemental income.
In 1994, Democrats would increase that threshold from 50% to 85% which is where it stands today.
So it is a curse on the elderly that keeps on cursing
more and more every year.
Social security itself is a curse on the elderly. If they had been allowed to invest that money themselves instead of handing it over at the point of a gun to the government ponzi scheme, they would all be millionaires when they retire.
I wonder what new rule the GOP has up its sleeve
now that is NOT indexed for inflation.
Hopefully, they will decide to stop paying social security benefits to people who are below retirement age. And maybe they will implement a flat tax so that everyone pays the same rate. Nothing could be more fair than that.
I know the tax credits aren't that are being touted as replacement of personal exemptions that are.
Tax credits are nothing more than a means of using the IRS to directly redistribute wealth.
The irony is... IF the GOP's tax reform is passed [which is doubtful], I predict
that many here who are defending it will be hurt by it. The devil is in the details.
What is your definition of "hurt by it"?
Anything that gets us to a flat tax is OK by me. There are millions of working Americans today that aren't paying a dime in income taxes. They need to start. Conversely, there are millions of Americans who are paying taxes into a ponzi scheme. That needs to stop.
But the most important part of all has nothing to do with taxes. It has to do with spending. Until spending is reduced to 19% of GDP, none of this will mean a thing.