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this method would save me substantially in my present situation where i am retired but not yet drawing social security. next year when the wife and i begin to draw our social security, it will cost me much more than i am paying now. this plan taxes social security and that should not happen since it has already been taxed. not only does it tax social security that i am drawing but it requires people drawing social security to pay into the plan while they are drawing from it if they have any other income of significance. something needs to be done about this or it will never fly.

this plan taxes social security and that should not happen since it has already been taxed.

Actually it doesn't as the Social Security is indexed for CPI which includes sales and excise taxes, not to mention the fact that the FairTax legislation expressly mandates in law that the Social Security index must include the effects of the retail sales tax implemented under the FairTax as well.

This is above and beyond the FCA sales tax rebate that all legal residents receive regardless of income or actual expenditure.

this method would save me substantially in my present situation where i am retired but not yet drawing social security. next year when the wife and i begin to draw our social security, it will cost me much more than i am paying now. this plan taxes social security and that should not happen since it has already been taxed. not only does it tax social security that i am drawing but it requires people drawing social security to pay into the plan while they are drawing from it if they have any other income of significance. something needs to be done about this or it will never fly.

The only tax you will pay for Social Security is a Sales tax when you make a purchase on new items. Social Security/Medicare funds will no longer be triple-taxed as they are now: 1) when payroll taxes are initially withheld; 2) when those withheld payroll taxes are counted as part of the taxable base for income tax purposes; and 3) when the promised benefits are finally received. See http://www.fairtaxvolunteer.org/smart/faq-main.html#7 for more information.

Thanks to Clinton, your Social Security is taxed under the present system. This is basically a sales tax so you can control your tax rate by controlling your discretionary spending.