Taxing Social Security Benefits: A Threat to Retirees' Income
Social Security taxes might seem like a good idea, but they could have dire consequences for millions of retired Americans. The thresholds at which taxes on benefits apply are very low, affecting seniors with combined income levels below $25,000 or $32,000. President Trump's plan to end taxes on Social Security benefits may be well-intentioned, but it has the potential to offer limited good and cause harm.
- The fact that lawmakers never voted to raise the combined income thresholds suggests that there is a deep-seated concern about the impact of taxing Social Security benefits on low-income retirees, who are often already struggling to make ends meet.
- How will policymakers address the growing number of seniors who will be affected by increasing taxes on Social Security benefits in the coming decades, and what alternatives will they consider to ensure that the program remains sustainable?