Who do they think they are kidding, congress has been ripping off seniors for over 60 years. So I e-pmailed the RNC the following.
I have observed firts hand, the senior citizens of the U S getting ripped off for over 30 years. They are getting ripped off by having their trust fund confiscated in various ways and repolaced with promissory notes issued by the treasury department and by having to return some of their benifits by having those benifits subject to income tax. The current income threshold triggering the taxation of SS bemifits is $20,000 single and $32,000 married for married and has never been adjusted by the cost of living adjustment available to several types of income.
I have worked as an income tax proffessional for close to 50 years and am disgusted with this back door procedure to steal from the SS trust fund.
This past income tax season, I conducted a study on what effect this tax has had on my clientele, I have performed this study using simple arithetic, no mathematical gimmickry or complex formulas. After completing the clients tax return for 2011, I simply removed the taxable SS from the gross income and recalculated the tax. This study covered a gross income range of $20,000-$85,000 (no super rich people here) and the results were amazingly revealing and shocking. The reduction in the tax liability for the year ranged from $115 to $10,800. The shocking part of this study revealed that when the decrease in tax liability was compared to the tax liability including SS taxable inmcome represented 45%-52% of that tax laibility
Our income tax system uses a progressive tax rate application as well as COLA application ie: the tax rate increases as taxable income increases and COLA is applied to various portions of the tax code. Not so in the taxation of SS benifits.To apply the progressive tax theory and COLA adjustments to people with higher incomes and not the senior taxpayer is a form politically selected discrimination. Hence the income threshold for this taxation should be raised to $200,000 but I have yet to find a member of congress with guts enough to initiate legiuslation to that effect.
Any loss of revenue to the treasury should be made up by improving the management of the trust fund by removing political crony's, relatives, etc and let the true management proffessionals run the show.
The future of the trust fund can also be greatly enhanced by removing the earnings cap of $110,800 on the SS payroll tax. I am 83 years old and am still working and contributing to the program through payroll tax being witheld from my earnings every pay day from the time 65 years ago when I began working for wages. Another indication of selected class discrimination by government by allowing those fat cats earning an exemption for SS payroll tax when the earnings cap is reached.
Other ways to further the future of the SS mprogram can be as follows.
Tax all types of bonus's, perks, and other methods of remuneraqtion as self employment tax imposed on working induviduals operating their own business; at the normal rate of 6.2%
Require all federal employees to pay the 6.,2% payroll tax by having it witheld from their pay (another form of selective political discrimination) , the goverment employers share could be excluded from this tax.
Make all types of self employed income, such as royalties, certain types of capital gains, venture capital income, etc subject to the self employment SS tax.
Require the trust fund to retain 10 years of payable benifits in interest bearing cash accounts and allowing aonly those funds in excess of those future benifits to be used for the purchase of bonds or promissary notes of any kind
We need a congress with GUTS to display, in a practical way, a national appreciation for the effort that senior citizens have rendered in contributing to the growth and propserity of this greates nation on earth.
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