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Old 09-28-2017, 01:21 PM
 
593 posts, read 858,154 times
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I believe social security income should be taxed. Most of the amount paid out after a few years exceeds the amount withheld. In fact I would think it should be subject to the 1.45% Medicare tax. But that is not part of the plan being discussed.
The 2% increase in the lowest tax rate will probably increase my personal taxes since the new standard deduction is less then my itemized deductions.
If they get rid of the estate tax then they need to revoke the step up in basis for assets. And that will hurt a lot more people then the estate tax hit.

 
Old 09-28-2017, 01:35 PM
 
Location: Whereever we have our RV parked
8,778 posts, read 7,701,741 times
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The tax plan will have little effect on most retirees, unless they have large sources of income that puts them in the upper brackets. The biggest savings might be the simplified form. Overall, the plan looks like a great idea. I hope it passes.
 
Old 09-28-2017, 02:01 PM
 
1,183 posts, read 761,331 times
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Quote:
Originally Posted by FiveLoaves View Post
Removing the State Tax Deduction is OK with me. My State Tax Bill was so small.....it's a non-issue here.

I was hoping they would remove the Tax on Social Security altogether (Thanks Reagan). If the stated goal is to simplify the Tax Code, then get rid of that nonsensical 50% or 85% or whatever. I already paid Income Tax on those Earnings -- you're Taxing me again !!

Who is more likely to spend the extra money from a reduced Tax Bill ?? A Senior Citizen ? Or Joe Sixpack ?
My state tax bill is high and I don't get SS so I don't like this. I can play this game too.
 
Old 09-28-2017, 02:18 PM
 
Location: Grove City, Ohio
10,133 posts, read 12,383,606 times
Reputation: 13956
Quote:
Originally Posted by cb2008 View Post
Positive, negative, no change?
Any thoughts?

Edit: there is another thread in Economics but I am hoping fro relevance fro retirees who have more than minimum income.
Not going to affect me much if at all.

Here's a xml worksheet that is pretty nice How much of my social security benefit may be taxed?

A married couple can have a combined social security income of $52,000 and not pay a dime in federal taxes and in most states that income is exempt from state and local taxes as well.

If you are forced to withdraw IRA money then you might have to pay something on your social security and in an example I put in $12,000/year in IRA withdrawals and federal taxes on the $52,000 will end up being $450 plus I would probably lose 15% of the $12,000 so there goes another $1,800 for a total federal tax of $2,250 on an income of $66,000 which isn't all that bad.
 
Old 09-28-2017, 02:20 PM
 
1,484 posts, read 414,361 times
Reputation: 858
Quote:
Originally Posted by old fed View Post
My state tax bill is high and I don't get SS so I don't like this. I can play this game too.
Same here. No mortgage any longer, but our property taxes are high. We are holding off on social security until max but now it was just announced that my exchange health insurance will go up 50% in Georgia. Yikes.
We may need to start SS earlier than planned.
 
Old 09-28-2017, 02:28 PM
 
Location: Charleston, SC
1,362 posts, read 766,848 times
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Every Game has Winners and Losers. The Great State of South Carolina exempts SS and Pensions from their Taxable base.

I don't know how Saint Ronnie ramrodded that SS Tax thru Tip O'Neill's Congress, but he should be remembered for shaking down Senior Citizens for a few extra dollars. I don't think Great Britain nor Germany taxes their version of Social Security.

Doesn't matter how much the amount of SS Tax is......it's the ridiculous calculations you have to go thru to determine the amount. Why didn't these geniuses go after the Hedge Fund Millionaires with the same vigor as they went after Retirees ??

Last edited by FiveLoaves; 09-28-2017 at 02:39 PM..
 
Old 09-28-2017, 02:53 PM
 
Location: Grove City, Ohio
10,133 posts, read 12,383,606 times
Reputation: 13956
Quote:
Originally Posted by Lemming95 View Post
I believe social security income should be taxed. Most of the amount paid out after a few years exceeds the amount withheld. In fact I would think it should be subject to the 1.45% Medicare tax. But that is not part of the plan being discussed.
The 2% increase in the lowest tax rate will probably increase my personal taxes since the new standard deduction is less then my itemized deductions.
If they get rid of the estate tax then they need to revoke the step up in basis for assets. And that will hurt a lot more people then the estate tax hit.
I've been getting W2 income since about 1965 and about three years ago I took that amounts my employer and I paid into social security to just to count it up. Looking at historical tax rates and a history of simple bankbook savings account interest if I had simply deposited the money into that passbook savings account I would have over $750,000 today.

This isn't a high interest or Edward Jones account it's a simple passbook savings account that any kid today can have.

And yes, interest rates were much, much higher in the 70's than they are today.

It is amazing what compound interest will do over 50 years.

I will start collecting next year when I turn 70 and my monthly benefit is projected to be around $3,150 for $37,800/year. I will have to live 19.8 years or age 89 to "break even" some would call it. There are numbers you can run and I am expected to live to be 86 years old given my current state of health.
 
Old 09-28-2017, 03:08 PM
 
11,126 posts, read 8,537,739 times
Reputation: 28094
Quote:
Originally Posted by Southern man View Post
Whatever President Trump does is ok by me. When I voted for him, I gave him my approval.
He could kill babies and you'll give him the thumbs up? You don't see a problem with following someone blindly? Trump is still human and can make mistakes.
 
Old 09-28-2017, 03:10 PM
 
Location: Straddling two worlds
2,523 posts, read 801,970 times
Reputation: 1756
Quote:
Originally Posted by rjm1cc View Post
I do not know what it is but reducing taxes is a plus. Especially corporations.
Then reduce expenses that do not result in positive results.
Support for the needy should not result in them having a higher standard of living than a tax payer earning the same amount of money and then having to pay taxes that go to the needy.
what?
 
Old 09-28-2017, 03:21 PM
 
Location: Las Vegas
13,888 posts, read 25,319,935 times
Reputation: 26382
Do we really know enough yet to be able to say?
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