"Don't Tax You. Don't Tax Me. Tax The Person Behind The Tree."
That is not exactly wonderful poetry, and we are glad that we can't claim credit for it. But, when it comes to the politics of taxation, that is the way things work. What the poem means is that the government should not tax you or me, but it is OK to tax the other guy. The guy behind the tree is someone (group) that we either don't know or are not part of. We all become the person behind the tree at some time or another. When taxes are increased, politicians typically let those that are not being hit by the tax know how wonderful tax reform or Social Security reform is. The tax is aimed at the other guy (behind the tree).
Who Is The Person Behind The Tree When Social Security Gets Reformed?
Tax State And Local Workers
Lets tax state and local workers. State and local workers do not pay Social Security tax, but some do receive Social Security benefits! If a state and local worker has spouse that is in the Social Security system, that state and local worker may be able to draw a spousal benefit.
Tax All Those That Pay Income Tax
Lets tax those that pay income tax. Since the Federal government has a surplus that is burning a whole in its pocket, lets use the surplus to help bail out Social Security.
Tax Workers More
This is very straight forward. Increase the payroll tax rate.
Tax Higher Income Workers
Increase the Social Security maximum faster than it would normally be increased for inflation.
Tax Higher Income Beneficiaries
After one reaches a certain level of income, Social Security benefits become taxable. Either the level of income could be lowered or the percent of benefits that is taxable could be increased. In this way the wealthy could essentially pay even more for the luxury of receiving Social Security benefits.
| Home |
Software | Other Sources | Contact
| Current Benefits Computation | Reform | Reform Options | Search |
Phone: 1(303)796-7780 (Note: We are NOT the Social
Copyright © 1999-2016, Denver Tax Software, Inc.