Opinion / Politics / Press Releases

AMAC Seeks End to “The Tax on Aging”

taxWASHINGTON, DC, Oct 2 — “No one likes to pay taxes.  But, it can be downright painful if you are elderly and your income from Social Security is not enough to support retirement.  So you try to make ends meet by taking on a job.  And then you learn that not only do you have to pay taxes on your earnings from that job but also on your Social Security income, which you funded in the first place with taxes you paid when you were working full time,” says senior activist Bob Carlstrom.

Carlstrom says it is time to put an end to what he calls: “the tax on aging.”

He notes that it is getting tougher and tougher each year for seniors to make ends meet as the cost of living continues to rise.  According to the National Institute on Retirement Security, “The burden of preparing for retirement is increasing as workers face more risk and rising costs. Escalating housing, healthcare, and long-term care costs in retirement are creating retirement obstacles for Americans.”

Carlstrom, president of AMAC Action, the advocacy affiliate of the Association of Mature American Citizens, says that he and AMAC are determined to see the law changed.  They are promoting a bill in Congress that would amend the Internal Revenue Code of 1986 to remove the inclusion of Social Security and tier I railroad retirement benefits in an individual’s taxable gross income.

Social Security benefits were initially exempt from federal income tax, but in 1983, Congress approved recommendations from the National Commission on Social Security Reform to tax the benefits of some higher-income Social Security beneficiaries.

Carlstrom notes that the definition of “higher income” has changed dramatically in the ensuing 37 years.  As he put it in a letter to Members of Congress.

“Every year, millions of seniors become eligible for either Social Security or tier I railroad retirement benefits. After working for decades, paying taxes on their hard-earned income to fund these federal programs, some seniors are forced to pay income tax on the benefits they receive from the federal government. Taxing benefits which were created from already taxed funds is nonsensical and curtails retirement benefits seniors have been promised. Seniors deserve to reap the full benefits of their hard work from career-long contributions to Social Security and the Railroad Retirement Plan.”

The Senior Citizens Tax Elimination Act would amend the Internal Revenue Code of 1986 to remove the inclusion of tier I railroad retirement benefits and Social Security benefits in an individual’s gross income.  As this legislation takes effect, seniors will notice their tax liability is significantly reduced. Seniors will no longer be burdened with the “double tax” on their federally earned benefits.

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PaulE
1 month ago

Social Security, on its own, was never intended to provide for what we would call a comfortable, but modest retirement. It was, at best, designed to provide for a bare, subsistence style living in old age. Basically just enough monthly income to provide enough food to get by on and maybe a modest form of shelter. Like a rented room in not necessarily the good part of town. Washington bureaucrats thought more along the lines of a room in a flop house. Things like healthcare costs and a long retirement were never envisioned in the early 1930’s by FDR’s people,… Read more »

Norman Blowers
1 month ago

This taxing of retirement income again, after taxing the initial earnings, is deplorable. We spent years earning a retirement and paying into a system that was to be returned with after tax dollars. Then we found that greedy politicians decided to double tax us and lie to us, breaking their word and their contract with America. My wife & I were average professionals, never reaching a combined total of 6 figures. Yet we are taxed on 1/3 to 1/2 of our SS income. Meanwhile, the fat cats that passed the changes get to retire at home for the REST OF… Read more »

Last edited 1 month ago by Norman Blowers
Jean Barnes
1 month ago

I have been complaining about taxes for years. God help us if the Dems get the White House again. It does sound like President Trump plans to do more on cutting taxes and has mentioned getting rid of the IRS. Now that would be great! Go AMAC…

Brenda
1 month ago

I am 76 years old and working full time. Medicare, and Social Security taxes are taken out of my paycheck. Medicare and a supplemental insurance are taken out of my Social Security check. Leaving me with very little to live on. Not much is fair about the SS system. Our representatives to Congress have been duly elected to protect us, as far as I can see, they are getting richer and have great retirement benefits which are provided by the tax payers. Term Limits would be a great way to limit all the fraud and benefits to them.

Heather
1 month ago

Talk, talk, talk, talk, talk, that is ALL congress does. The law can’t even prosecute the liers and corruptness on the hill and the FBI. How in the world will they ever help us seniors???? The democ rats just want their power and MONEY.

Jl
1 month ago

Yes agreed.
Also, many couples live together unmarried because their social security benefits will be penalized and reduced.
The funds are being robbed/stolen by congress. Funds should be transparent where they are spent and audited by 3rd party to protect the money.
Medicaid funds should be seperate from medicare if it isn’t already.
Thank you for your deligence and caring. God bless

Starr
1 month ago

Appreciate your focus on federal taxes, but my state is taxing both my Social Security income and regular pension. So if we are going to fix this, please find a way to stop the states as well at least for the SS part since it is a federal program. Thanks

Connie
1 month ago

This has been a long time coming and is much needed. Now if we could just get localities to stop taxing our homes after a certain age, we wouldn’t be facing the loss of a roof over our heads (even after our mortgage is paid off) simply because we can no longer afford the taxes on our homes.

Ann
1 month ago

I SO APPRECIATE this effort… every dollar counts and better for seniors than government already greedy and power grabbing mantra!

Bill Williams
1 month ago

How I do appreciate AMACs effort, but I fear it ain’t ever gonna happen. Feds have been overtaxing seniors for so many years it now just seems the ‘politically correct’ thing to do. It’s always, tax those on the fixed income, example, the federal retiree, offsets the retirement with Social Security with the WEP offset where the SS is about one third of normal and COLAs are are at impossible lows to live normal lives. One has to be in a certain ‘not working’ class for a free ride. Folks, that’s the way it works to buy the votes.

LTC S
1 month ago

I believe this is a very worthy cause that will not be supported by a congress that spends more than it makes. Taxing any retirement income – by the state or federal government is counter productive. We pay into retirement programs to support us while we are no longer working. We planned how to maintain a modest life using these retirement plans. And guess what, the state and federal government want part of it back. You give me money based on what I gave you And now you want back part of the money you’re giving me. As the cost… Read more »

Wylie Babb
1 month ago

This would be a terrific help

DougM
1 month ago

I agree, the tax should be eliminated. Very much needed with healthcare costs escalating and out of control. I also agree with term limits for Congress.

Myrna
1 month ago

it is time to stop congress from searching everywhere for more money. The “Affordable Healthcare Act” was suppose to provide some insurance for people with no way to be insured. Instead it was used as an excuse to impose a requirement to be insured and pile penalties on top of insurance premiums as a punishment for citizens who earn more than congress’ cutoff thereby sending a message that people should earn just enough to survive or be penalized. What kind of message does that send to younger people who find out what is happening to their grandparents? I can see… Read more »

DaveR
1 month ago

you lose your spouse and her income makes it harder.

Faith Rose
1 month ago

Thankyou for your efforts our behalf. One reason one sees so many elderly working is that their benefits are not adequate. In addition, before they even get their pay, close to, or more than $300 is deducted for part B and supplemental insurance. Then a separate amount has to be paid for a totally inadequate drug policy. This last three months we have had to expend cloe to $1500 for medicines AFTER DEDUCTIBLE was applied.

Randal Vidal
1 month ago

I think this taxing should go away on both incomes S.S and if you must take a job to make ends meet

And After 69 years of age there should be no School taxes, No property Taxes, no Sales Taxes
Let the elderly coast to the finish line and be happy

DonHyneman
1 month ago

The original thought was to tax high-income retirees on the employer-match input that was likely written off as a business expense. However, it was not indexed for inflation and it can tax not only the employer portion, but also most of the portion that was already taxed Thus instead of 7% of all recipients being hit with the “tax torpedo”, 60% are. Even if my employer portion was taxed as regular income (at 12%), that would be an improvement of the effective 50% rate the torpedo forces me to pay now. In otherwords, I lose 25% of my entire Social… Read more »

Jack Thomas
1 month ago

The Senior Citizen Tax Elimination Act H.R. 3971 originally sponsored by Rep. Tom Massie, R-KY is a bill that should have been passed and signed into law by President Trump long ago. Congressional approval is way overdue; it’s time this initiative stops floating around in various committees and gets to the Senate floor for a vote. There’s no compelling reason why SS benefits should be taxed a second time (for Federal income tax purposes) years after American seniors paid into the system all their working lives. From a compassionate standpoint (and I’ve been saying this for years now) there’s also… Read more »

Misty
1 month ago

Social Security and Medicare are socialist programs devised by that great commie FDR. End them now and put that money toward paying down the deficit!

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