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|Subject: Re: Obama on payroll tax||Date: 6/17/2008 9:09 AM|
|Author: billjam||Number: 13459 of 19738|
"The inclusion of SS benefits in taxable income is a form of means testing. For a long time SS was totally exempt from income tax. Now anything from 0% to 85% of your benefit is taxed, depending on other income.
We now have a similar sliding scale of Medicare Part B premiums, based on income.
One problem with current taxation of SS benefits is the lack of indexing. A rapidly growing segment of even lower middel income recipients have their SS taxed because the calculation uses an income base that hasn't changed since the legislation was enacted. It was only supposed to tax high income recipients.
A word of warning to Congress: don't write or revise any tax legislation without indexing provisions.
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