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MYTHS AND MISINFORMATION ABOUT SOCIAL SECURITY

N NobluedogPost Master
MYTHS AND MISINFORMATION ABOUT SOCIAL SECURITY-


Q3. Which political party started taxing Social Security annuities?

A3. The taxation of Social Security began in 1984 following passage of a set of Amendments in 1983, which were signed into law by President Reagan in April 1983. These amendments passed the Congress in 1983 on an overwhelmingly bi-partisan vote.
The basic rule put in place was that up to 50% of Social Security benefits could be added to taxable income, if the taxpayer's total income exceeded certain thresholds.

The taxation of benefits was a proposal which came from the Greenspan Commission appointed by President Reagan and chaired by Alan Greenspan (who went on to later become the Chairman of the Federal Reserve).
The full text of the Greenspan Commission report is available on our website.
President's Reagan's signing statement for the 1983 Amendments can also be found on our website.
A detailed explanation of the provisions of the 1983 law is also available on the website.
http://www.socialsecurity.gov/.../InternetMyths2.html
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SS97SS97Hall of Famer
Q4. Which political party increased the taxes on Social Security annuities?

A4. In 1993, legislation was enacted which had the effect of increasing the tax put in place under the 1983 law. It raised from 50% to 85% the portion of Social Security benefits subject to taxation; but the increased percentage only applied to "higher income" beneficiaries. Beneficiaries of modest incomes might still be subject to the 50% rate, or to no taxation at all, depending on their overall taxable income.

This change in the tax rate was one provision in a massive Omnibus Budget Reconciliation Act (OBRA) passed that year. The OBRA 1993 legislation was deadlocked in the Senate on a tie vote of 50-50 and Vice President Al Gore cast the deciding vote in favor of passage. President Clinton signed the bill into law on August 10, 1993.

(You can find a brief historical summary of the development of taxation of Social Security benefits on the Social Security website.)
CageTheElephantCageTheElephantPost Master
quote:
MYTHS AND MISINFORMATION ABOUT SOCIAL SECURITY-


Q3. Which political party started taxing Social Security annuities?

A3. The taxation of Social Security began in 1984 following passage of a set of Amendments in 1983, which were signed into law by President Reagan in April 1983. These amendments passed the Congress in 1983 on an overwhelmingly bi-partisan vote.
The basic rule put in place was that up to 50% of Social Security benefits could be added to taxable income, if the taxpayer's total income exceeded certain thresholds.

The taxation of benefits was a proposal which came from the Greenspan Commission appointed by President Reagan and chaired by Alan Greenspan (who went on to later become the Chairman of the Federal Reserve).
The full text of the Greenspan Commission report is available on our website.
President's Reagan's signing statement for the 1983 Amendments can also be found on our website.
A detailed explanation of the provisions of the 1983 law is also available on the website.
http://www.socialsecurity.gov/.../InternetMyths2.html



And your point would be...
pineywoodscatpineywoodscatHall of Famer
quote:
Originally posted by ferrellj:
It's an attempt at one of the oldest strategies of the left. Deflection. He's trying to point out something that a republican did 25 years ago that we would be against if Obama did it today. The deflection didn't work blue.


Does it really make any difference who did the dirty deed? It is wrong by any stretch of the imagination. granted it is not a lot of money, but in this day and time if you have saved and scrimped to have a decent retirement that should not be a penalty for your efforts. I think it should be repealed.
D dolemitejbHall of Famer
quote:
Does it really make any difference who did the dirty deed? It is wrong by any stretch of the imagination. granted it is not a lot of money, but in this day and time if you have saved and scrimped to have a decent retirement that should not be a penalty for your efforts. I think it should be repealed.


Repealing any tax is always good, but at this point I think that would lead to Social Security's ultimate insolvency. That might not be bad in the long-term, but it would certainly have negative consequences in the short-term.

The 1983 Amendments really were horrible. Not only did they increase the payroll tax, but they took the Social Security Trust Fund "off the books." The treasury continued issuing government backed securities and using the surplus cash, but the changes didn't show up as part of the deficit (this is also what led to Clinton's "surplus"). In other words, the government created a way to borrow from itself without anything showing up on the books. Essentially, the middle class got screwed, and the government got a windfall of cash to spend. Standard.

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