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. Our neighbors put it clearly— had they realized how much the govt was gonna take away from them in their old age, they would’ve spent it all and gone on welfare when they couldn’t work any longer It’s all very demotivating. No wonder so many young folks are not rolling to fork much anymore
Probably will get flamed here but the generation going on/on social security have largely been responsible for where we are now.
It is time to end all of the gimmicks and go to a flat tax with a single exclusion amount. Everyone pays 10% of income over and above x thousands dollars. Everyone has to have skin in the game and pay a share and all of the gaming of the system.
Rolling to fork?
“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.
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.