Bill on House Floor Proposes End Taxing Social Security Payments
A new bill, proposed by Representative Thomas Massie (R-Kentucky), proposes to end the federal government’s practice of taxing Social Security benefits as income – a practice often referred to as “double taxing.”
“Seniors have already paid tax on their Social Security contributions, so taxing Social Security is double-taxing by the federal government,” Massie said Tuesday, January 21st. “Taxing Social Security reduces benefits to seniors.”
In his statement, Rep. Massie said that Social Security was designed to provide support during retirement, but the federal government has instead found a way to use that payment as another source of income.
“Taxing these benefits,” he said, “is an accounting sleight of hand that redistributes portions of the Social Security trust fund to other areas of government.” Massie believes this “double taxing” is unfair to senior citizens who rely on Social Security to support them in their twilight years.
The bill is called Senior Citizens Tax Elimination Act, H.R. 3894. It is cosponsored by Representatives Jim Bridenstine, R-Oklahom, and Ron DeSantis, R-Florida.
“Congressman Massie’s bill blows the whistle on the federal government for double taxing the Social Security benefits of senior citizens,” DeSantis said. “Individuals already pay taxes to support Social Security, so there is no reason why these earned benefits should be taxed on the back end.”
Proposal Comes as Social Security Study Shows 1/3 of SSI and SSDI Income Goes to Healthcare
The new bill proposal comes as Social Security Works published a study showing that out-of-pocket medical costs for seniors and people with disabilities – who rely on Social Security benefits to survive – makes up about 37% of their SSI or SSDI income.
Currently, median household income for seniors on Social Security Income totals about $34,000, while income for people on Social Security Disability benefits totals less than $30,000 per year.
Social Security benefits were designed to support those in need rather than go toward medical bills. However, with inflated healthcare costs and changes to the Medicare and Medicaid program, the study found that 1/3 of Social Security payments goes toward expensive medicines and treatments.
The study further showed that in 1992, with Medicare and Medicaid helping offset healthcare costs for the elderly and disabled, nearly 80 cents on every dollar of Social Security income remained to cover cost of living – rent, food, and transportation, which can all be expensive. However, today, just slightly over 60 cents on the dollar remains after healthcare costs are taken out of Social Security income, and policy changes along with healthcare costs seem to keep that on a downward spiral.
The Strom Law Firm Can Help with Social Security Benefits Claims
Applying for Social Security Disability or Retirement Insurance can be complex. However, we understand that you need your benefits and we will put our years of experience to work for you to ensure that you have the representation necessary to actively pursue your claim. Call the attorneys at the Strom Law Firm today to discuss your Social Security Disability or Supplemental Security Income case today. We will be glad to discuss any questions you may have during our free, confidential consultation. Call the experienced attorneys at the Strom Law Firm at (803)252-4800.
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