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Subject:  Re: Social Security Benefits Tax Date:  7/18/2000  9:27 PM
Author:  Chipsboss Number:  4541 of 22292

The House Ways and Means Committee will consider a bill to repeal a 1993 tax increase in which income tax was imposed on 85 percent - up from 50 percent - of Social Security benefits of recipients earning over $34,000 for individuals, $44,000 for married couples. That bill would cost an estimated $44.6 billion over five years. according to MSNBC.

This makes it clear that the proposed new law doesn't create a new tax break. Instead, it repeals a fairly recent tax increase on Social Security benefits. The government has long told us that it never intended Social Security to be a complete retirement package and that we should look into providing ourselves with corporate or union pensions and private investments, including IRA's and 401k's. (I took that advice and am watching to see if my prudence now costs me my social security benefit, since I don't need it.) The proposed tax reduction on social security benefits would increase my after-income-tax standard of living by about 2%, so it's not significant to me personally one way or the other. Still, I'd like to see that tax repeal become law.

Clinton complains that the Republican tax cuts are broad, not "targeted". I think his beef about broad tax cuts is they that go mostly to those who are already burdened paying the highest income taxes and tend to vote Republican. Clinton also calls the proposed tax cuts "reckless". Evidently this is because he believes that our wise masters in Washington are far better qualified to dispose of our money than we are ourselves. Clinton and his kind oppose any tax reform that rewards productivity rather than neediness.

the grizzled Chips
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