Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
If you go back a few posts, i think Mathjak figured out what the poster meant - the meaning had totally escaped me too. Since the Medicare part B premium is deducted from our Social Security benefit, it has to be added back in - added to the net SS benefit to get a total (gross) SS benefit, which is then taxable.
I'm just assuming that 12 years from now when I start collecting, I'll be paying tax on 85% of my Social Security. There is no noise at all in Congress to index this to inflation. At 2% per year, I certainly can't escape the $25K cutoff for tax-free and it will be very hard to game required distributions to escape 85%.
The political impact of this is that both the Tea Party flat tax plus VAT/GST national sales tax; or a Bernie tax change that jacks up taxes for everyone to hand out free stuff to Millennials who get nothing now; are not retiree-friendly tax policy. The status quo at least keeps the Federal income tax burden low for the vast majority of retirees.
I'm just assuming that 12 years from now when I start collecting, I'll be paying tax on 85% of my Social Security. There is no noise at all in Congress to index this to inflation. At 2% per year, I certainly can't escape the $25K cutoff for tax-free and it will be very hard to game required distributions to escape 85%.
The political impact of this is that both the Tea Party flat tax plus VAT/GST national sales tax; or a Bernie tax change that jacks up taxes for everyone to hand out free stuff to Millennials who get nothing now; are not retiree-friendly tax policy. The status quo at least keeps the Federal income tax burden low for the vast majority of retirees.
I think I would be much worse off if any flat tax/VAT sales tax idea becomes law. I see no way on earth any of these promises do anything more in the end than raise taxes on those who cannot afford it. These programs Sanders, who has no chance to be elected, wants to implement come at a great cost. No free. Any sort of part time job guarantees all of my SS or close to it will be taxable.
It's not "earned" income, it's simply other taxable income, such as from interest, dividends, capital gains, etc. That's why slyfox can have no "earned" income yet still have his SS taxed.
I think the biggest question most of us have is how about IRA withdrawals? Doesn't that count?
Location: Was Midvalley Oregon; Now Eastside Seattle area
13,061 posts, read 7,497,585 times
Reputation: 9788
Resign your self to the inevitable.
You'll eventually will feel better.
I figure that what I get in senior discounts is matched by senior taxes.
YMMV
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Huh?
