Quote:
Originally Posted by Finn_Jarber
Thanks Trump & GOP
https://www.wsj.com/articles/social-...ear-1528223245
This is three years sooner than expected a year ago, partly due to lower economic growth projections, according to the latest annual report the trustees of Social Security and Medicare released Tuesday. The program’s income comes from tax revenue and interest from its trust fund.
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Lower income-tax rates reduced projected revenue from the taxation of Social Security benefits. That means less money flowing into both programs because those revenues are transferred to the trust funds. |
That's completely false.
The Social Security Administration has been "dipping" into the OASI Trust Fund for the last 8 years.
For example, in March, Social Security did not collect enough FICA payroll tax revenues to pay benefits, so it pulled $7.595 Billion from the OASI Trust Fund to cover the benefit payments. In 2017, there was a loss of $65 Billion, and 2014 a loss of $39.5 Billion and every year since 2010 has been a loss.
The OASI Trust Fund has not received FICA tax revenues since 2009, and its growth has been solely based on accrued interest from the treasury securities, because the FICA tax revenues collected are less than the benefit payments.
The claim that "
lower income-tax rates reduced projected revenues" is patently absurd.
In 2017, Social Security collected a grand total of $35.9 Billion from the taxation of benefits, which won't even pay half-a-month of current benefits, and once monthly benefit payments reach $129 Billion per month 8 years from now, it will only cover 1/3 of a month of payments for a single month only.
The changes to the tax brackets have zero bearing on the taxation of Social Security benefits, since the formula is:
Adjusted Gross Income (not Modified Adjusted Gross Income)
+interest payments
+1/2 of Social Security Benefit
If you are single and that amount is greater than $25,000, then 50% your Social Security benefits are taxed as a form of means-testing. If you file a joint return and the amount is greater than $32,000, then 50% your Social Security benefits are taxed.
If you're single and exceed $32,000 or filing jointly and exceed $44,000, then 85% of your Social Security benefits are taxed as a form of means-testing.
That has not changed.
The only thing that has changed is the increase in the standard deduction and deductions for the blind and aged. That will have only a modest impact on the taxation of Social Security benefits, and in no way would the taxation of Social Security benefits ever save Social Security.
As things stand now, the taxation of Social Security benefits only pays for 2 weeks of benefits out of 52 weeks.
As you can see, it's just another cheap-shot jab at the tax changes.
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