No. of Recommendations: 4
Look at what they did in the 1986(?) tax reform. Social Security payments became taxable. But your contributions into SS was with after-tax money, so the money that SS pays you should not be taxed since it was already taxed once.

The argument was that most of SS benefit hasn't been taxed. Yes, what the employee paid in was taxed. But the half the employer paid in was not. In addition, SS benefit for most people far exceeds the total paid in so they said the difference (accumulated investment income) should be taxed. You may not like it but there is some logic to it.
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.