Taxes on Social Security Payments Should Be Eliminated

Contributions to Social Security were taxed before being withheld.  Until 1984, Social Security payments were not taxed.  In 1984, 8% of Social Security recipients paid federal income tax on the payments.   The thresholds for Social Security being taxed were set in 1984 and have not been adjusted for inflation. Today, 56% of recipients pay federal income tax on Social Security payments.

Two bills that have been reintroduced to eliminate taxes of Social Security: Senior Citizens Tax Elimination Act (H.R. 1040) and You Earned It, You Keep It Act.

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This is not financial, legislative, social security, tax nor retirement advice. Please consult a professional advisor.

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