Even for retirees who have lived a responsible life full of hard work, Social Security taxes remain a burden on their retirement.
Despite paying into the program faithfully for decades, and earning the retirement payments they get every month, a portion of this money can disappear before they ever get to think of spending it.
But a new bill is in discussion that could potentially alleviate seniors of this burden. They’ve paid the price to enjoy a fair retirement. And if this bill goes through, they’ll keep more of their hard-earned money.
“You Earned It, You Keep It” Could Eliminate Social Security Taxes for Retirees
This bill was originally introduced back in 2022 by Minnesota Rep. Angie Craig. It’s now been reintroduced, and the timing is perfect for such an important piece of legislation.
The main benefit is that it reinforces the purpose of Social Security. This program was always meant to give seniors the steady, dignified, enjoyable retirement they deserve. They’ve already paid in for decades, so paying taxes on their retirement income functions as a type of double tax that many believe is unjust.
Even for financially responsible retirees, the economy remains challenging. Eliminating taxes on retirement benefits means more money for other costs. This includes necessities like housing, utilities, groceries, and healthcare. It could also help cover the luxuries seniors should be able to look forward to in retirement.
But there’s another benefit to this bill. At a time when Social Security’s future is uncertain, this bill aims to provide long-term stability. According to its authors, it will be fully paid for by taxing those who earn more than $250,000 yearly. The bill’s creators say it will also extend the Old Age, Survivor’s, and Disability accounts for 20 years.
If you owe taxes on Social Security, it can be a strain on your finances. Do you think this bill will pass? Let us know your opinion. Also, you can support our efforts to protect retirement via our petition here. You can also follow us on Facebook and Twitter.