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DOUBLE TAXATION OF SENIORS IS NEW CAUSE FOR AMAC

AMAC's Founder, Dan Weber

BOHEMIA, NY, Apr 29, 2011 – The Association of Mature American Citizens says it is focused on a new cause—the double taxation of senior citizens.  Dan Weber, AMAC’s president, says it is “appalling” that many seniors on social security must pay income tax on their benefits and is calling on Congress to address the issue promptly.

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“The government is taxing their taxes, and that is just plain unfair” Weber notes in a new campaign calling on all seniors to join AMAC in its “demand that tax reformers on the Hill take a closer look at this particular, peculiar inequity in the law that decidedly targets older Americans.”

He gives as an example a person with a combined income of $38,000, (assuming $24,000 in Social Security income) would have half of his or her Social Security taxed. That person would fall into the 15% tax bracket resulting in $1,800 in extra tax on their Social Security income. In fact, when total combined income exceeds $44,000, 85% of the individual’s Social Security gets taxed, typically resulting in an extra tax of $3,000 or more. [See Social Security publication 915 to figure your combined income].

“These folks accumulated Social Security benefits in the first place by paying taxes and now the taxes they paid are being taxed.

AMAC has designated its Web site, www.amac.us, as the rallying point for its new cause and is asking “seniors and their families to visit and express their opinions and tell their own stories on this and other issues affecting them.”

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About The Author

Daniel C. Weber founded the Association of Mature American Citizens in the summer of 2007. Dan Weber sees AMAC as a way to unite citizens to defend our American way of life. To enrich the lives of AMAC’s members, Weber has assembled a package of benefits and discounts for Americans 50+ that they can get nowhere else.

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Comments (81)

  1. Arn says:

    When did congress change the law on double taxation. When was it past and who voted for it?

    • sedwin says:

      This became law under the Reagan-Greenspan Tax Law of 1983. It was part of the “Supply Side” economic plan where the rich stopped paying their fair share and the poor picked up more of the slack. Of course even this amount didn’t make up the whole amount the rich no longer stopped paying which is why we have been a society of debt and deficit since Reagan (with the exception of the Clinton years when Clinton made the rich pay their fair share for those few years). Supply-side economics is nothing but a pyramid scheme for the wealthy. If we made the rich pay their share and we removed the ceiling of roughly $200,000 on social security taxable income, we could immediately remove these illegal double taxes.

  2. Ted says:

    Just wait until our fellow conservatives move us to the (un)FAIR Tax. It sounded great about 25 years ago, but my “59 1/2 Birthday” is less than two weeks away and I am scared to death that I’ll be paying tax AGAIN on the same money, this time when I spend it in retirement. Unless there is a phased-out refundable tax credit for retired persons (phased-out fully when those never subject to Federal income, Social Security and Medicare taxes reach retirement), it should not be endorsed by this organization. I hate to say it, but I may have to talk the Republican talk and vote the Democrat vote if that’s what it will take to spend, tax-free, my already-taxed Roth IRA and non-retirement savings!!!

  3. Lou Wilson says:

    My problem is that your income is taxed before Social Security is taken out. Then the Social Security is taxed as income when you get it back. This is dual taxation. Social Security itself is not a tax, but the income used to pay it should not be taxed at the front end, if we’re also paying tax on it in the back end.

  4. Nancy says:

    It is simple….my income was taxed when I was working and now because I worked my behind off for 32 years and get my retirement benefits I am having to pay taxes on 85% of my Social Security. I am not even working now, but get a monthly retirement benefit and because of this monthly retirement benefit I have to be taxed on my Social Security that I already paid taxes on when I was working. This burns me up. I was shocked to find out I would have to pay 1500 dollars this year in taxes. I am just furious. The government has money to send and spend in other countries, but they tax the senior citizens here in the USA. The government has money to bail out all these huge cooperations that didn’t handle their money correctly etc. but they tax the senior citizens. This will really drive you crazy if you think about it enough. I saw a news program on tv years ago on government spending. You would not believe what stupid things our tax money supports each and every year….grants, programs etc. I mean really stupid stuff that don’t amount to anything. I was so mad after watching that program, I wished I had never even turned it on. I know someone that taught school for 32 years and they received grants etc. to try out new programs that didn’t amount to a pile of beans. The teachers hated them because they were useless and added more and more paper work for them to do instead of teach….but they got thousands and thousands of dollars to do these programs….the money was used to bring in people to do this or the other and buy stupid materials to use to test etc. (as if our children aren’t tested enough)….this is just one example of what our tax money that they take from senior citizens is used for. I am so mad right now…I have to go and rest a bit to calm down.

  5. Lawrence Coop says:

    The IRS formula used to determine tax owed on Social Security income has not changed since it was first introduced and contains glaring examples of marriage penalties. In 1994 the amount subject to tax was increased from 50% to 85% and since that time Social Security COLAs have amounted to 44.3% with no indexing of the IRS formula. Maybe I should feel fortunate that our total income reguires us to pay Federal tax on 85% of SS income. The added 35% subject to tax resulted in an additionl tax liability of $1082.00 for tax year 2011.

  6. Lauralie Campbell says:

    In the latest edition of Amac Advantage, an article titled “Seniors Paying Double Tax on Social Security Income” suggests two specific proposals to remedy this wrong policy. While I applaud Amac for highlighting the unfairness of US tax policies against seniors, I am disappointed in Amac’s proposed alternatives. First, Amac encourages President Obama and Congress to remedy the situation through Tax Code changes to “take this tax burden off the middle class” and “go after the multi-millionaires and billionaires”. It is disappointing to hear Amac espouse what is essentially class warfare as a solution to any government created problem. Second, the Amac suggestion to create a ‘tax on the windfall profits received by the trial lawyers when they win a major lawsuit’ is doubly flawed. It ignores the fundamental need for tort reform in our flawed civil litigation system. Most importantly, it only fuels an already insatiable federal appetite for revenue via confiscation and redistribution of wealth, under the guise of ‘windfall profits’. How long might it be before this same government decrees the investment return on our IRAs to be ‘windfall profits’? I am disappointed that Amac has failed to use this issue as an opportunity to stand against the insane and unsustainable levels of federal spending and taxation that are destroying our economy and our wealth. I am also dismayed to hear Amac advocating for tax increases and spread-the-wealth schemes unlike those that are advocated by liberals and our government. I expect better from Amac.

  7. Frank K says:

    The tax on 50% of Social Security benefits was initiated by R Regan. It was increased to 85% by Clinton.
    The problem is the basis of $25,000 for Single and $32000 for Married has not been increased for inflation sicne 1983.

  8. Richard & Dorothy says:

    Yes, the Dems did pass this law.
    Yes, it is unfair.
    Yes, it should be repealed.
    Why would the Dems repeal a sacred cow ? (Taxes that pay for their social programs)
    The time to attempt repeal is when Obama is out of office and the Senate is controled by more conservatives.
    Above all, we should never advocate raising the taxes on any person, rich, lawyer or whatever for our own benefit. Sounds like an Obama non solution.

  9. TallGal in GA says:

    I paid tax on my income and then Social Security was taken out. I pay taxes on my retirement income, which includes that same Social Security money. If Obama’s debt cure includes another tax on Soc Sec, wouldn’t that be TRIPLE taxation?

  10. edna fox says:

    my dad died in 1978 of cancer. five days before he died he received a letter from s.s. admin. stating that he was “able” to work. he died and my mom fought to get his s.s. benefits to no avail. how sad is this? makes you wonder who got it.

  11. edna fox says:

    i had to pay taxes on my s.s. for 7 years because my husband was working and this put us in a higher tax bracket. he retired last year and we were told that we would not have to pay these s.s. taxes any longer. this is so unfair, the govt. wants your money any way they can get it. they should be made to pay us back,

  12. John W. Rosenberger says:

    I know all about it. I have been paying into SS ever since it started back about 1936. It’s the damned democrats that want our money. We have got to get rid of the goddamned democrats!!

  13. Marc Arquilla says:

    Thank you

  14. Marc Arquilla says:

    Good to read that many others agree.

  15. Marc Arquilla says:

    I have not joined AARP because I learned that they work against my beliefs. I agree with most all of the postings above and am sickened to learn that seniors and all American citizens are being screwed by most of our representatives. They talk a good talk about helping people, but it is they (the politicians) who get helped by their actions.
    I have paid into the SS system since I was 14. I have been very sick for the last ten years and continued to go to work to support my family. The more I earned, the more I was penalized (taxed). Two years ago I had a kidney transplant. The transplant has kept me alive, but I can no longer work to support my family. I qualified for S.S. Disability and Medicare at the age of 60 (because of a law that entitles kidney dialysis or transplant patients). I have heard the word ENTITLEMENT from the politicians and other ignorant people. I am disgusted with that word and the thought that I paid into the SS system for 46 years, only to hear the word entitlement described as if I were a charity case or I was being supported by other hard working citizens.
    Now there are those in our government that want to reduce the entitlements that I earned by working and paying into the system almost all my life.
    Additionally, medicare benefits for kidney patients is only good for 36 months. My cobra which costs me $1350/month will expire soon also. The medical premiums not to mention the medical expenses that are not covered by Medicare or my Cobra insurance are killing me. When the insurance expires, my family will be without health insurance. The government offers 36 months of Medicare to kidney patients. What is the patient supposed to do after the 36 months is up……DIE for lack of money to pay these outrageous medical bills. My medicine alone costs over $4200/month plus doctor and hospital bills. My wife now works 20/7 to pay our bills. Her company does not offer health insurance. We will soon likely lose most everything we own.
    I am an American citizen who worked in an industry that went “south” literally and figureatively as the American politicians basically gave my industry away to foreign nations.
    When I hear that the government wants to tax my benefits that my wife and I already paid taxes on when we earned the benefits…and that the idiots in Congress say that I am getting an “entitlement” as if it were a dirty word and a gift from them…..and they want to reduce it or eliminate it….while at the same time they are using entitlements to lure illegals to vote for them….and at the same time even more illegals are being enticed to come to this great country of entitlements to receive entitlements that they did not earn……I am seriously disgusted.
    We have three daughters who are in debt with college loans that will take a 20 years to pay off. One of my daughters just started working. She was in shock when she learned how much money was taken out of her check. All working Americans are. Our politicians spend our money like drunken sailors for wars and projects that make no or little sense. Most of them lack the courage to stand for what is Right, but they sure know how to stand for what is LEFT. They make rules and laws for everyone and even more special rules and laws FOR THEMSELVES GIVING THEMSELVES “ENTITLEMNETS” that they don’t earn or deserve.
    Our country is in a Big Mess. We need to clean house…..that is House of Representatives and the Senate…and we need a President who believes in God and prayer. We need leaders who are God-fearing, honest and have knowledge of history and economics….History repeats itself and without knowledge of it, our leaders will lead us to hell.
    Our leaders have already put a huge load on our children and their children for the next generations. We need to make big changes right away to turn things around. But let’s trim the budget by plugging the leaks that are really causing the problems in this country. Stop giving our future away by giving monies to other countries (especially countries that hate us and wish us evil), and spending on wars that we should not be involved in, to illegals, to the needless and frivilous pork that the politicians use to get votes. Make the politicians live and breathe by the same laws they make us live and breathe by. Stop penalizing people who go to work everyday and stop penalizing the entrepreneurs. Reward the American citizens with their due. Let’s make this the country that it was founded to be and let’s start governing our country according to the Constitution again. Get rid of czars and the liberal socialistic way of governing or they will get rid of the United States as we know it and love it.

  16. Donald says:

    As a recent retiree I was exposed to the Federal Senior Citizen Tax, which is an extra tax on Social Security and/or Railroad Retirement benefits. It causes your taxable income to increase by taxing up to 85% of your Social Security and/or Railroad Retirement Benefits. Before 1984, Social Security benefits were tax exempt, then after a Greenspan Commission report pointed out that Social Security finances needed bolstering, congress changed the rules so a portion of Retirement Income became taxable. The limit was on 50% of the Social Security Benefits for (married filing jointly) returns that had more than $32,000 income. The algorithm increases the taxable income which in turn increases the Federal Income Tax burden on existing SS beneficiaries. The extra money was to be designated (Earmarked) to the Social Security Trust Fund. Then in 1993 the limits was raised to 85% and the base amount was raised to $44,000. The increased revenue was to be designated (Earmarked) to the Medicare Trust Fund. Taxable income is compounded by adding up to 85% of your retirement income. For Example: A $1,000 increase in income could add as much as $1,850 to taxable income. The Senior Citizens Tax violates Article I, Section 8 of The Constitution of the United States of America. Section 8 requires that “..all Imposts and Excises shall be uniform throughout the United States.” A tax that eliminates Federal Government Workers and others that do not receive Social Security and/or Railroad Retirement Pension benefits is not uniform.

    I live in Minnesota which has a state income tax, so when Federal Taxable Income increases it also increases Minnesota state taxes. As a Minnesota resident that continued working after retirement and paying additional SS Taxes the marginal tax rate could go as high as 48% (Federal, State & SS) even though you are in the Federal 15% Tax Bracket.

    Prior to retirement Social Security tax rate is 6.2% and Medicare is 1.45% for employed workers and double that amount for self-employed workers. Senior Citizen Tax rate for Social security and Medicare for the Senior Citizen Tax is dependent on the tax bracket that the taxpayers are in. Taxpayers in the 15% bracket would pay 15/6.2 = 2.4 times the normal rate for Social Security and 15/1.45 = 10.3 times the normal rate for Medicare. Is this even legal to charge a higher rate for Social Security and Medicare

  17. Joan Apodaka says:

    At what point do we say enough is enough? Now they starve our seniors and continue to give to illegal interloping squatters? We have worked our butts off from Day One and were made to pay into the system. We have been suckers for decades; taxing from citizens to give to illegal invaders. The majority of whom believe that 30% of U.S. territory should be “returned” to Mexico. If we are not angry enough at this point to “walk like Egyptians” I wonder how much agony at the hand of tyranny WILL it take?

    • Rick 05 says:

      Hate to say it but you are wrong my friend. Illegals are not entitled to SS.One must have a valid SS number and work for 10 yrs. and or have 40 credits to qualify. So please get your facts straight before you rant.

  18. George Michaud says:

    When I first joined AMAC quite some time ago, more than a year and 3 months I was looking for more from this organization and possibly I’m expecting too much too fast. However, while I certainly do not agree with the AARP agenda, I do expect more action from AMAC in Washington, DC . It seems like the only person representing us (AMAC)members in a big way is Jedediah Bila. I’ve seen her on FOX NEWS a few times and read her articles. The organization as a whole is just not doing enough to make a mark out there and let voters and Congress know that we exist. While I appreciate your good intentions and your efforts to date, with all the memberships and the fees you collect along with advertising dollars one would think you have the resources to to do more. Maybe a television ad promoting membership in lieu of being a member of AARP would pay off at this point in time or a blitz of ads everywhere doing this and increase your membership tenfold. The power is in numbers as you know. I hope that this organization continues to grow and do good things but it all seems to have slowed to a snails pace the past six months or more. We (AMAC) members need our voices heard by those who matter in the legislature and in Congress and let them know what’s really happening in the REAL WORLD. Thank you and keep up the good work. More work will prove to give fruitful results from your efforts.

  19. DietSprite2011 says:

    Need to roll back the tax ruling that penalizes seniors who worked a full time second job AND PAYED FULL TAXES on income are penalized and only receive a small portion of their earned SS if receiving a pension.

  20. John Higgins says:

    Bill Lewis is a little off on the pay back, I’ve paid into SS over 45 years and as a self employed person I have put in over $100,000 in just the last 10 years. It will take more than 3 years before I get even. And what about the interest on what I paid in?

  21. Maria - Florida says:

    Finally someone is addressing this “double taxation”. There is $2.5 trillion in the trust fund in surplus that was collected between 1983 and 2009…..but it is not there. Congress has spent OUR money on roads to corporate welfare. The trust fund is filled with Treasury bonds that are not backed by any real assets. If the money was still there, invested, and earning interest/dividends, the fund would not be in the red. The Social Security system must return to its original purpose. Many American seniors are relying on Social Security as their main means of support. As of now, they are probably not taxed, but as we know, you give Congress an inch and they take a mile. COLA….we seniors were told there is no inflation???? Price of gas, food, utilities, I think they have risen dramatically. We might have been paying into SS since the 60’s, but we are paying 2011 prices. I urge Amac to continue the fight and all Americans to write their congressional representatives.

  22. Steve J says:

    Unfair taxation, such as this, is the very reason we had the original ‘Boston Tea Party’. How long ’til we have another? Are the politicians and bureaucrats ignorant of our own history? You can bet they won’t pay taxes on their retirement benefits.

  23. Matt says:

    The Dirty Little Secret is that this is back-door Means Testing for Social Security Benefits. The better you did for yourself and your family during your working years the better off you will be during retirement. This can quite easily put you in a higher tax bracket making the Marginal Tax Rate on SS Benefits even higher.

  24. Bill Lewis says:

    Seems to me that once you have received SS payments that equal what you have paid into the system – which is usually 2 or 3 years after you begin receiving SS – you should be taxed on future payments.
    I agree with Jim Gross on the exclusion of food and gas not being include in the CPI calculation.

  25. Jim Gross says:

    The double taxation is truly outrageous, but it is not the only outrage we put up with. How about cola? The deal was, we get a retirement that is adjusted for cost of living. Now they say, “well, yes but, we can’t count food or gas, they are too volatile”. OK, great, so long as we don’t eat or drive we should be just fine. This is the really big outrage we face now.

  26. Larry O'Connor says:

    Mandatory 70 1/2 pre-distros, let’s get that changed to 80 1/2. Email & call your state senators & congressman now. Tell them your a ‘community organizer’ for seniors!!!

  27. George Michaud says:

    Rick and Latetia in New York are right. Use that 1099 calculation on the reverse of that form or you can find in online easily. Regardless, we all need to fight like crazy to stop this President. He s bankrupting our nation. Watch very closely who you vote for next election. Do not be fooled by political rhetoric.

  28. Rick says:

    I gave up fighting this years ago, even though Clinton & Gore made FDR a liar. I’ve been paying into SS since the 1960s and will start drawing out next month. I will get taxed on 85% of the benefit, but in after tax dollars I will have received all of the dollars I paid to SS within 7 years.
    I encourage everyone to do the same math, and AMAC to consider putting resources into issues likely to be more fruitful.

  29. Laetitia in New York says:

    People: please do the calculations on the back of your SSA-1099 to find out if you owe any taxes on your social security benefits plus other income.
    For example, if your SS is $24,000 and your other income is $14,000, the calculation would be as follows.
    One half the SS ($12,000) plus the other income ($14,000) equals $26,000. If you are married and filing jointly and your calculation is less than $32,000, you do not owe tax on your SS.
    The $14,000 in other income is than offset by your joint standard deduction of $11,600 for this tax year and your joint exemption amount of $7,300. In addition, your joint standard deduction is kicked up to $13,600 if you were born before 1/02/46.
    If you don’t have at least the standard deduction when itemizing, then why would you go through that hassle, when you can take either the $11,600 or $13,600 without the hassle of itemizing.
    Mr. Moore, above, also explained it in a slightly different way, BUT, between the two explanations, it should be understood.
    Please people do your homework! Use that calculation form on the back of your SSA-1090 and see how much you overpaid.

  30. Mel says:

    Wasn’t it VP Al Gore that cast the deciding vote? Thanks a lot!!!

  31. George Michaud says:

    This is certainly NOT a very popular thing to do. More than likely it will not happen but if it does it truly is double taxation, no matter how one spins it. The Tea Party had better get on the ball and get on this one fast in a very big way. Just because Obama happened to be in The White House when Intelligence and The Military found UBL and killed him doesn’t make him a hero, a genius or anything like it. Anyone could have been in that office when this happened. Through all the administrations all leads had been followed up with but led no where. This one just happened to be the one which I understand came from KAL from the interrogations at Gitmo when Bush was President. The President needs to get some schooling on how to run a business, get the economy back on its feet and put people back to work. My goodness, there are still over 425000 people applying for unemployment checks.. Tell me that’s not costing us and increasing he debt. They (The DEMS) just need to face it that their spending has brought us to the point that this country is near BROKE. Get with it and get that national debt DOWN before its too late. Already, the dollar is going way down, Gold going up too high, gasoline too high and food prices soaring. What does that tell us?

  32. tom in Maryland says:

    Actually I believe you are only ststing half of the problem. In the years we earned income and paid into the Soc. Sec. system, our income tax was figured on all of our income. We did not receive an itemized deduction for the amount of social security paid into the system so it stood at the top of our income structure and was taxed at the maximum rate applicable in the years earned.
    When Bill Clinton and Al Gore were in office, they decided to tax social security “income” subject to certain percentage reductions dependant on the amount of total income earned in any given year. This means that we are being taxed again on money distributed as social security but on which we have already paid income tax.

  33. Barry L Hughes, DC says:

    As long as we, the people, allow Congress to tax our income we will be subject to the abuses of government intrusion into our lives. This is why many of the founders felt so strongly about the evils of income taxation. We have seen that the left, progressives, if you will, repeatedly resorts to class warfare during election cycles to capitalize on the imagined rift between what they perceive as the war of the haves vs. the have nots (per Alinsky). Only a consumption tax (not a VAT) can solve this politicosocial dilema we face. Were EVERYONE in the country to pay a comsumption tax, those who spend more will necessarily pay more. The caveat is that EVERYONE will pay their FAIR share. No income tax = equality in taxation and economic freedom for businesses and individuals alike. No IRS and no double SS tax.

  34. Neil Lynch says:

    Give credit where credit is due.

    Be sure to thank Al Gore as it was his deciding vote that allowed the tax on Social Security to pass.

  35. Sandy Hodges says:

    Greetings! My late father refused to work after 85% of his social security was taxable that first year. Perhaps he was cutting his nose to spite his face, but he was not going to let the government tax his SSI. Regardless. May he rest in peace.

  36. Phyllis Bessette says:

    SS was never intended to be total income for a person after retirement. If people think they can live on that paltry income, they are badly misguided. Do you remember when President Bush presented the idea that although withholding would still be mandatory, wage earners should be given the option to have their money go into SS or used to invest privately? The Democrats shot that idea down big time, and the AARP was apoplectic. We are apparently too stupid to manage our own money. Oh, and the SS payment you receive monthly does increase when taxes you pay on money you earn from your part time or full time job (still trying to make ends meet) is taken into consideration. Your payment increases approximately $1.00 per month.

  37. Charles Moore says:

    Actually the example is not correct. A husband and wife retired on Social Securitty with an income of $24,000 of Security and other income of $14,000 will not pay $1800 in taxes. They will have two standard exemptions of 3650 for 7300 and a Standard decuction of $11,800 for total a total of $19,100. Social Security is taxable on a joint return at $32,500 and in this case the formula would exempt the $24,000 in SS and tax only the $14,000 in other income and the $19,100 would offset it. resulting in no taxes.

  38. Neil larson says:

    What do you mean double taxed. Hell! We are already being doubled taxed. My wife is on Social Security/Medicare. She has to pay for Medicare benefits, plus She has to file taxes on her Social Security. I am getting close to retirement and it hits us big time. I thingk Congress should take a damned good look at the people who have been receiving welfare benefits, who have never worked, accept for raising more kids to collect more money, and the pork barrel spending. Thank you very much LBJ (1965) for getting rid of poverty. Yeah–Right!! All it has done is get rid of the middle class, increased burden on the middle class and the people who have built America!

  39. julia fanning says:

    Double taxes Social Security recipents is an unjustice to all that have worked all their life paid into the
    fund to live on after no longer able to
    work. Has our government grown so
    cold and greedy not to care about its
    own people. Stop getting government
    raises and helping other countries and concentrate on rebuilding America and taking care of the elders
    with giving them all they have worked
    for. I liked the statement about God
    only asking for 10% of our income, no
    more or no less, but not taking more
    than we have.

  40. pat says:

    I think this income tax on Social Security benefits is the fault of the biggest liberal of all time Ted Kennedy. We paid taxes on the money in the form of Social Security tax – now we pay tax again when we get it back… as my grandson would say, ” UNBELIEVABLE”…..

  41. B. Roberts says:

    It’s NOT just Social Security taxation, but the entire tax system that is part of the problem. If God can run the entire universe on 10% (the amount Christians are asked by Him to pay on their earnings) then the government needs to consider doing likewise. Tax should have NOTHING to do with:
    marital status age gender

    If a wealthy person is taxed 10% (or 15 or even 20%) and a poor person is taxed the same proportion on their income, THEN the tax is FAIR!! Each and every taxpayer is taxed an equal portion of his/her earnings whether it’s 10, 15 or 20 % (there SHOULD BE a maximum percentage ceiling).

    Providing for my ‘old age’ is NOT, NEVER has been, NEVER will be government’s job. That is MY job. If I fail to prepare for it, then I prepare to and deserve to fail. I just retired in June 2010. Back when I was 15/16 and had my first job, I was incensed that I had NO VOICE or CHOICE in whether or not I wanted the government to withhold money for Social Security. I may have been young, idealistic and/or naive, but I told my father way back then that Social Security should be ended. It’s purpose was long ago finished!!!

    IF way back in the 1960’s people had been GIVEN THE OPTION to contribute OR NOT to contribute, there would have been sufficient money in the coffers to pay those who had already been forced to pay into it. The rest of society would have had to begin planning for their own ‘old age’ program.

    That did not happen. Now, like everyone else my age who was forced into ‘contributing’ I want what is mine!!! I want the interest I WOULD HAVE earned IF I had put the money in a special account for 40 + years!!! That belongs to me — NOT the government!!

    We are not just ‘approaching’ a financial crisis, we have already begun falling over that proverbial cliff. Many very poor financial decisions have been made by more than one former President and countless Congressmen and Congresswomen. But it could ONLY improve things immediately and immensely to get rid of (remove from office) the enemy within the Oval Office and those who support his lunatic, traitorous, evil designs to bring this country into premeditated and plotted slavery by many insidious actions — not the least of which is letting ‘natural attrition of Seniors’ (in other words, let the ‘old’ people die) because they flat can’t afford the health care they need while at the same time GIVING the top of the line health care to NON-citizens who’ve NEVER paid a single cent into taxes or anything else.

    We SHOULD BE outraged enough to do more than submit comments on a blog such as this!!! It’s time to ‘trouble the waters’ of our elected ‘officials’ by a constant barrage of phone calls, emails, old-fashioned letters, face-to-face townhall meetings, etc. — whatever it takes — so they can’t do anything else but listen as they get their ears chewed off and BEGIN to understand SERIOUS, COMPREHENSIVE actions MUST be taken to subvert these issues and they (the ‘officials’) are REQUIRED to make take those actions OR be replaced VERY soon.

  42. GlynisS says:

    2 Chronicles 7:14, “if My people who are called by My name will humble themselves, and pray and seek My face, and turn from their wicked ways, then I will hear from heaven, and will forgive their sin and heal their land.”

  43. S. Mangus says:

    I have personally seen SS in action… whenever you go to one of their offices all you see are immigrants (probably illegals) waiting their turn to get money…they didn’t put into the system in the first place. I also know someone who worked very hard all his life and now needs support from ss system because he is handicapped. Then there are the younger generation…I am embarrassed to say they want a free ride in life & produced a child to get free money from the system or to work under the table to get extra money… this is not right… I am now ready to consider retiring in the next few years…although I’m going to hold out as l-o-n-g as possible to get as much out of this system as possible… I hear that ss will be retaxing this money I’ve put into the system for lots of years…this is totally unfair for those people that put into the system. Sometimes people that put into the system in the first place don’t live to see a penny & what about the interest they have made with our initial taxation of our money….note the word “our”? What needs to be done is to have a senior revolution… to vote out the entire body of idiots that came up with this idea & get some normalcy into our government. No more handouts to illegals & others who are not working cause they’re
    L-A-Z-Y…..

  44. LMH says:

    You have omitted telling that if you have other income, your SS pay will be reduced significantly. Then it will also be taxed.

  45. B. L. C. says:

    Obama Care in action. Tax, tax, tax. I hope all retired people think about what this president is doing come election time in 2012.

  46. Tricia says:

    I had a micro- mini business before retirement. As self-employed, I paid FICA (SS) TWICE as employee AND employer. However, only the employee amount is figured for my SS payment. Since my SS check, (after it is INCOME TAXED AGAIN and after paying a hefty Medicare premium each month)—leaves very little to live on and with no COLA for 2 years (because prices haven’t gone up?!?) the next step would be to get a part-time job to supplement. But, who will hire a someone over 65 with so many younger folks unemployed? If I am fortunate enough to get a job, they WILL take FICA (or SS) out of my paycheck, demand income tax on the NET pay I receive, BUT MY SOCIAL SECURITY CHECK WILL NEVER INCREASE since it was set in stone when I started receiving it. Do the math—it doesn’t pay to get a part-time job. I am back to being self-employed and require payment in cash “under the table.”

    I intend to join up with AMAC so that Seniors will have more clout as a group to demand that this double income tax on Social Security be stopped. Has writing to your Congressman EVER worked? Seniors and Boomers are a HUGE group of people—who vote!

  47. Victoria DeLacy says:

    It’s absolutely disgraceful. While Congressmen with six-figure incomes got raises last year, I have to make do with no cost of living increase on my Social Security check these past 3 years while food costs continue to skyrocket – HOW am I supposed to continue to make ends meet?

  48. Dan Heintzman says:

    The previous comments have said it all. This is absolutely rediculous. To pay taxes on it after already being taxed originally is something only an idiot would dream up.

  49. Jim says:

    Why is this being addressed only now? I had this question before I began receiving my benefits. We work our butts off, pay Social Security Tax earn our credits and then have to pay tax on it as income. It is way past time for this to change. Perhaps if the system would stop allowing everyone who does not qualify for benefits to stop receiving them, we would have a better plan.

  50. Carolyn Paxton says:

    Blaming one political party or the other won’t fix anything it only creates anger and the only one to suffer is the one carrying the anger. Also, nothing changes regardless of the party in office. It’s good to see someone is taking some action regarding the unfair treatment of those of us on Social Security. When I first retired and started drawing my SS I was told that at a certain age I could return to work and work as much as I wanted and it would not affect how much I would recieve. Until recently that was true, however what I was not told was that if I returned to work which I did my SS would be considered taxable income. Recently I was notified that because I earned too much via being employed and the small amount taken each month from my 401K the SS payment was being reduced. Go figure! In these times of financial crisis I doubt anyone will listen to the outcry of us seniors but at least it’s good to know someone cares enough to try.

  51. ANNE L says:

    Don’t you know that the first stop for all the newly-elected is the wonderful liberal colleges in this Country. There the newly-elected are indoctrinated according to the screwball thinking of whaco, idealistic, liberal, worthless college instructors/professors or whatever you choose to call them. I prefer idiots. First class is how to ensure re-election. Next is how to insulate yourself from the electorate and avoid giving truthful, direct answers to any inquiry by the lowly voters. After all, what right do they have to question you!! Third class is that all those peons who voted you to this lofty position do not know what’s best for themselves anyway. Just use your imagination and you begin to get the picture ~ God Bless the U.S.A. and down with the idiot liberal democrats whose brains never completely developed and are stuck with the logic of a 13-year-old.

  52. Cheryl says:

    do away with the income tax and the IRS, vote for the Fair Tax.

  53. Bruce Saxe says:

    It seems that most people who responded here are retirees. Each has his/her story.The Liberal/progressive/socialist elite will tell you, with tears in their eyes, the blatant lie that the Republican plan will take your and grandma’s SSI and Medicare away. When you hear that it’s time to stand up and tell them they are full of you know what. Any changes that are necessary will not affect anyone 55 or over. That’s the truth. Too bad the MSM keeps repeating that Democat lie.

  54. Joan Bynum says:

    As of Feb. I noticed that my company was taking out an additional 30.00 out of my small retirement check. When I called my company they said it was a new tax form put out by the IRS for retirees only. I called two of my congressman and they knew nothing about it. Finally I called the IRS and it turns out that that in 2008 Sr. were given a tax credit from the Feds. Congress voted this year not to extend it. So out of my little retirement pay of 890.00 a month I now pay 72.00 in Fed. taxes. Now they are going to start taxing my SS. Plus I was notified that my insurance through my co. will go up 100.00 next yr.

  55. Wolf-Talker says:

    I am a senior citizen and also a U.S.A.F. retiree if our wonderful govtnmt is so hard up for funds for their pet projects and so fort to run the country, why not just stop paying people social security and military pensions? Wouldn’t it be easy to say both systems are bankrupt, so we won’t pay, sorry. The day it comes to that should become the first day of the second Amreican Revolution. If the Govt. doesn’t stop the taxation of peoples hard earned and paid for rights that second revolution may come sooner than our Govt. would expect. How dare the Govt. when it comes to the national budget even have a thought about not paying the troops. At that point the million man march on washington would look like a sunday school picnic compare to what could happen. We need to vote out the jackasses and get in people that care. The Govt. needs to become more fiscally responsible and learn to live like the people they are supposed to represent, live within its budget and not continue to print more new money when it needs it. Lets make 2012 the year we clean house and get in the people who should be there. A Government of the people for the people by the people!
    R Young U.S.A.F. Ret.

  56. lyle schaefer says:

    Ok people, I did contact my congressmen, and senators from Indinia, the response i got rom them, That is the way it is, it is the law, and until it is changed you will continue to pay taxes on you ss. I have paid taxes on my ss ever since i started drawing it in 1999. another thing, is medicare, why should we have to pay fro something that we have alreeady paid for ?

  57. Bruce Saxe says:

    Your article is almost correct. It’s actually much worse than that. Social Security and Medicare benefits are nearly quadruple taxed. Here’s how:

    1. SS is deducted from your salary, but it is added back when it comes time to pay your income taxes, (The same applies for Medicare taxes) because the “Tax” is NOT A Tax nor is it tax deductible, but added back as income. Therefore, depending on your pre-retirement tax bracket you may be paying the Social Security deduction from your salary and up to 30% more in taxes on what you paid to the Government for Social Security (and Medicare).

    2. When you choose to receive your SSI benefits, depending on your income, you pay tax on up to 85% of that benefit. In addition, you pay back increasing amounts from your SSI benefits for your Medicare benefits depending on all your retirement income, for which purposes Medicare includes all taxable and non-taxable income.

    That, my friends, is almost quadruple taxation plus taxation of your “tax free income” when you retire.
    The worse part of this charade is that all that money goes into the general fund and is spent and replaced by an IOU from the Government in the form of bonds which are worthless the way we’re currently spending. We have no money to redeem this additional multi-trillion dollar internal debt.
    Only idiots and Democrats think Social Security and Medicare can continue like this before our country goes over a financial cliff.

  58. John B Quinlan says:

    Not only that but, over 70 1/2 you have to draw out from IRA. Goes into income and gets taxed. Raises income and causes more of Social Security to be taxed. Another double whammy.

  59. Bob and Robin says:

    The Social Security Systemis in trouble because of all the people who gett benefits from the Fund but never paid intoit.
    There is definitely DOUBLE TAXATION and it needs to STOP.
    We Seniors have needed a true voice for Years.Thanks AMAC,Inc.
    Hopefully you can get members from AARP & get them GONE, along with all the money that they get from the Government.

  60. James Hammond says:

    I am 81 and in good health but when my first wife died I needed to go back to work when I remarried. My combined s.s. and pension was just barely enough to pay bills since I have been retired since 1992 and value of money has dropped substantially. The government must think I am rich with 3 incomes which adds up to $48,000 per year. With s.s. and pension I paid no taxes but now I have taxes on over 1/2 of my s.s. and there is very little I can deduct now since most deductions have high limits before they can be used. I paid my taxes willingly before I retired but now I shouldn’t have to pay anything! I should be able to enjoy life at my age without giving so much to help people who should be working but won’t or can’t. The politicians spend spend spend mostly to buy the so-called poor or little-people’s vote! Unfortunately, the public is misinformed by the politicians about the truth. I hope AMAC can help get the truth to the public so they realize they are being lied to or their attention is being diverted to emotional issues like Republicans are trying to take grandma’s s.s. away so she will have to decide between eating or paying for heat or rent.

  61. Bronna Merritt says:

    I have been trying for 2 years to get someone to pay attention to this problem. I emailed my senator and just had the response that other issues were of importance now but he would look into it!!! We need to get the media involved and have this fact published nationwide. Many seniors are not aware of this rule. I am 75 and have worked under Social Security since I was ten years old and I have to pay taxes every year because I do not have enough deductions; I use my money to live and I am outraged that I am double taxed.
    Thank you.

  62. Billy Falling says:

    Why is there not a bill before congress today to eliminate this tax? Why do I have to join another organization with annual dues to get someone to do something about this? Please answer above questions before I make a decision to join.

  63. xschild says:

    This is absolutely true. Took a part time job to suppliment SS income and got a 1099 and had to come up with cold cash to pay income on a paltry amount. Tipped us over the edge into new tax bracket. Quit supplimenting SS income. Cut back on living expenses and medical. We live this, most of you posters are not there yet.
    Just wait. No cost of livng increase in two years. Medical co pays went up and so did everything else including utilities. Moan.

  64. Shirley Keller says:

    I’m 74 years old and, fortunately, still
    in great health. I enjoy working!!! I get so p___ed that I have to pay taxes on my social security, earning I have already paid tax on just because Iny salary is over $24,000 per year. I could be a ward of the state, the government could be payi9ng to keep me. Just because I’m still healthy and working, I should not have to give my social security back in taxes.

  65. Shirley Keller says:

    I’m 74 years old and, fortunately, still
    9in great health. I enjoy working!!! I get so p___ed f that I have to pay taxes on my social security, earning I have already paid tax on just because Iny salary is over $24,000 per year. I could be a ward of the state, the government could be payi9ng to keep me. Just because I’m still healthy and working, I should not have to give my social security back in taxes.

  66. Joe says:

    It is criminal for our government to tax it’s seniors social security for all of the reasons listed above. This is a benefit – not income and I for one am fed up with the shenanigans of the libelous liberal left. I will resign my position and find work where my pay is ‘under the table’ very shortly if this injustice isn’t reversed

  67. Petra says:

    This double tax has been allowed to persist well past the Clinton administration. Focus was shifted away from it when emphasis was given to the “no-COLA”. This discriminatory tax is levied upon those who, for the majority, can least afford it. Medicare Part B payments, taxed benefits, no COLA – Something has to give and I hope we can get this tax repealed quickly

  68. Richard Patefield says:

    Ok, everyone agrees that it is outragious. Dan Weber, what is AMAC doing to raise awareness to our Congress men and women about this travisty? Does the AMAC have lobbysts in D.C.? I have contacted my congressmen…………….everyone should do the same.

  69. Lou Affeldt says:

    I have expressed my displeasure on this double taxation with my representative and two senators. I told them I could understand taxing 50% of my repayment as that was contributions into the fund by my employers. The federal government has had use of my withholdings from 1 to 40 years. God willing, I will breakeven, at 0% interest, if I live to be 77.

  70. Thomas Julian says:

    Of course this is ridiculous, but when (mostly) Dermocrats are in power, any source of taxes is fair game, even while proclaiming their concern for the little guy — how about sneior citizens whose incomes are fixed and not based on extenisve (or perhaps, “any,” stock dividends.

    This is another good reason for a truly needed change, namely, , compelling Congress to abide by the same laws it passes for the rest of the population. For example, being subject to the vicissitudes of Obama’s health care (sic) act, having their incomes also subjected to social security taxes. The requirement to be subject to all laws Congress might pass is something that would give pause to some of the nonsense it does put into law.

  71. DAVID C BURROWS says:

    IT’S ABOUT TIME SOMEONE SPOKE UP.LETS GET THIS GOING.TAXES ARE HIGH ENOUGH AS IT IS.

  72. william vandiver says:

    ill be retireing in a couple of yrs and ive been paying into ss since i was 17. the government dont care about us they only care what they can get and keep for there self and there family and they dont give a shit about us or are family’s so ameria its time to stand up for are damn rights (IM A VIET NAM)

  73. Rich Holme says:

    I have bee retired for 10 years and have always had a hard time with Fed 1040, its about time this has come up, I agree Al Gore was the cause!

  74. Dennis Baker says:

    I have been putting into SS for 47 years and I don’t like the word entitlement. that is my money and it should not be taxed. Under Clinton and Gore we are now taxed. that is double taxation and that should not be allowed to happen. What can we do. Roosevelt set up the ss system and promised it would be voluntary not now (2) you were to only pay 1% of the first $1400.00 not now its 7.65% of the first $100000.00 (3) the money would be deductible from incone for tax purpose each year not now (4) it was to be in a seperate fund. Lyndon Johnson moved the money to the General Fund and (5) The annuity payments to the retirees would never be taxed not now. What happened the Democratic party had control of the the house. and to make matters worse Jimmy Carter with the the Tie-Breaking vote from Al Gore voted to give to Tax Social Security and Give our ss money to immigrants that have not paid one dime into. I am just Mad as I can be.

  75. tommy says:

    I agree above and have contacted my Senator about this.
    We have already paid taxes on this money when were working and now have pay taxes on it again.
    This law was passed by Clinto with Gore casting the deciding vote. Dems at it again.

  76. Larry Jamison says:

    We have paid into the Social Security all our lives and paid taxes already on our income. The government is just giving our forced retirement money back to us that was taken from our salary. Now they want to tax us on money we have already paid taxes on.
    This is very unfair.

  77. Alex says:

    This is the price Americans are to pay for their belief in the demagoguery of president Obama and the Democratic Party. Welcome to the bright future of the Socialist States of America

  78. Ron and Marg says:

    This is totally wrong. If the gov’t needs more money and they always do let them start cutting and shrinking the gov’t and all the perks that all politicians get for supposedly serving us the American people. They score 0 in my book. They want all our money and any they can get their hands on. No one has the courage to standup and say enough is enough and act on it. The politicians put us in this mess and they can get us out of it. Stop blaming everyone else for your mistakes and not have what it takes to correct your own mistakes.

  79. BEVERLY DOW says:

    This is absolutely ridiculous. Why then do employees and employers pay into the system and not receive interest on the monies? If they are going to tax it then they should only be taxing the interest earned from the monies being placed in “safe-keeping” hahaha for their retirement.

    If that is the case, why dont they just abolish the Social Secuirty System for the age groups of 30-40 and have them invest into their own future?

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