Posted on 06/12/2025 1:00:11 PM PDT by eastexsteve
WASHINGTON, D.C. – The One, Big, Beautiful Bill fulfills President Trump’s promise to seniors and provides welcome tax relief after four years of inflation robbed their retirement under President Biden. Each senior will receive an additional bonus of $4,000 to the standard deduction, putting more money in the pocket of millions of low- and middle-income seniors.
(Excerpt) Read more at waysandmeans.house.gov ...
“Agreed. It’s actual screwing of the elderly who worked their whole lives only to have much of their savings and pensions stolen thru the income tax system. “
NOT TRUE.
1. The pretense is that individuals retirement, private and social security, is the 100% result of what individuals contributed to the plans. Not true.
2. What employers contribute to individuals retirement plans, private and social security is in fact compensation that is not taxed at the time the employer makes the contributions.
3. Employers pay 50% of the contributions for an individual for social security. (Except for “self employed” persons who make the contribution required of the self employed). The individual pays 1/2 and the employer pays one half.
4. The individuals contributions - to social security or a private pension/retirement plan is from the income of the individual that has been taxed already. The employers portion is not/has not been taxed when their contributions were made.
5. In retirement, the taxable portion of social security or a private pension is that portion of the benefit payments made that are determined to be derived ONLY from the contributions from the EMPLOYER. That is the number shown as “taxable portion” on the 1099 form.
No one has been screwed and what has always been appropriate taxation of private retirement plans are equally appropriate for social security - where only that portion of benefits derived from contributions that were not taxed when the contributions were made constitute taxable income when received in retirement.
If you want a totally different system, like a 100% flat tax, I’d be all for it. But there is no case that retirees have been screwed compared to working people.
3. Employers pay 50% of the contributions for an individual for social security.
Ummmm, no.
I like spam and don’t like golf
I’m already lame but am planning to move to SE Asia and get around on a scooter.
I’m not worried too much. I’ve always known they can always find someone worse off than me to justify taking everything I have. Harder if I’m not here so....
“Isn’t the car loan deduction available to everyone? “
Only for businesses.
“I’d prefer adding my property taxes as an income deduction.”
Property tax is and income deduction.
> After all this time you still have on idea! <
I’m not exactly sure what that means. But if it’s a mistyped insult, I’d certainly prefer an explanation. Other folks here probably would too.
Oh, and I know it’s a reconciliation bill. From what I understand, such bills cannot make changes in Social Security. And that includes making Social Security tax-free. But it can give a senior tax credit, which is MUCH better than the apparent senior tax deduction.
But I could be wrong. That’s why explanations are nice.
I have, my ROR is around 2.5% according to social security.
Perhaps my case is different but the wife and I are both on social security and I am having to take the mandatory distributions from my 401k, and I have not paid any income tax since I retired.
It is not my calculation, I go to a tax preparer every year for them to run the numbers and it is always, no tax due.
“Oh, and I know it’s a reconciliation bill. From what I understand, such bills cannot make changes in Social Security. And that includes making Social Security tax-free. “
You included it in your list of proposals.
Only if you itemize and don't take the standard deduction. Even with high property taxes it doesn't come close to the SD.
I think it's available to everyone, not just seniors, in the BBB.
“The last is the worst. And it looks like that’s the one we’re gonna get.”
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You are exactly right. They obviously baited us with goodies and in the end threw us a (small) bone. The deduction just lowers your taxable income; the credit would have been a dollar-for-dollar reduction in taxes owed.
We got screwed again. Situation normal regardless of party.
You did explain what you meant by a flat Tax, but please say a flat Tax RATE. Many people are so stupid about math that they can be convinced that a flat tax means that they and Bill Gates will pay the same amount of taxes. It is time to teach people the difference between a tax rate and a tax which means tax revenue.
Good point. And in my case, I may fully retire as early as age 57, when my already retired wife will be 62, well before the age 65 that these BBB senior provisions take place for us. So in the end, people like us will benefit only from the BBB making the Trump tax cuts permanent, if I understand it correctly. I guess I shouldn't complain about that.
> You included it in your list of proposals. <
Yes (post #4). One of Trump’s original proposals was to make Social Security tax-free. That proposal was seriously discussed, so I included it. But it got dropped by the wayside.
I suppose Trump figured half a loaf was better than none, and so went with a weaker alternative - and a reconciliation bill, as you noted.
“I have, my ROR is around 2.5% according to social security. “
Your ROR???
If I may ask, are you paying taxes in your SS checks and are you paying taxes when you withdraw from your 401K? (Assuming it's a traditional / tax-deferred 401K and not a Roth 401K.) I'm basically asking if your tax liability is zero, or if you have a tax liability but the amount you pay in taxes throughout the year is enough to not force you to write a check in April.
The prior is preferrable and a statement of no taxes on seniors in your situation. The latter is matter of preferring one process of paying taxes over another (pay taxes throughout the year, or one time in April).
I much prefer a flat sales tax rate and the total and permanent elimination of any and all income taxes. Nobody should have to reveal their income to the government.
+1 Right you are.
How legalized theft via social security happens:
1. They tax your wages for social security and you also pay income taxes on this money you earned.
2. They do not save and invest the money but spend it via the general revenue fund. Your money is gone.
3. When you start drawing social security they tax it again by calling your money new income.
Al Capone was a petty nickle and dime thief when compared with the federal government.
“Actually it was mostly the Greatest Generation who became socialists and grew govt by leaps and bounds”
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There you have it! Good reality check.
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