(ConservativeFreePress.com) – Currently, more than half of Social Security recipients are either paying or are expected to pay taxes on their benefits. That number is set to increase in the next few years.
According to Bob Carlstrom, Association of Mature American Citizens founder and president, millions of seniors yearly “become eligible for either Social Security or tier I railroad retirement benefits.” He added that after years of being taxed on their income in order for these federal entitlement programs, they are now “forced to pay income tax on the benefits” that they receive.
Up until 1984, seniors’ Social Security was exempt from federal taxation. Following that the rules changed and taxes on up to 50% of their benefits were introduced for those seniors who had an annual income of up to $34,000. Those making over $34,000 a year are required to pay taxes on up to 85% of their benefits. For married couples, the taxation threshold is hit when they jointly earn more than $44,000, and they are then made to pay taxes on up to 85% of their benefits.
According to Census Bureau data, the average senior’s income is $47,620, which means that for most beneficiaries a large part of their income goes toward taxes.
Many critics of the law have pointed out that retirees are therefore being taxed twice, and that the income threshold was set in 1984, and updated in 1993 but never took inflation into consideration. When the thresholds were first established more retirees paid no or very little taxes.
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