Trump says, "no tax for seniors on Social Security."
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- Опубліковано 16 вер 2024
- Today, I discuss why we have to be careful about what we believe as politicians make pre-election promises.
My name is Howard and my goal is to bring UA-cam viewers interesting and factual information about the process of getting to retirement and living a successful retirement, through my channel, Otter's Retirement Corner. I have a degree in Finance, with an MBA from the University of Chicago's Booth School of Business, along with an extensive career in financial services, credit and risk management, within the Banking industry. I have extensively studied retirement topics such as: Social Security, Medicare, investing, economics and portfolio withdrawal strategies, to name a few. My own journey getting to retirement and now living within retirement has allowed me to gain an important perspective on those topics. Note: I am not a financial planner, a tax accountant or an investment advisor and none of the material covered in my videos is intended as personal advice. My videos are for entertainment purposes.
You can email me at: retirementtalk43@gmail.com
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Bravo Trump!
How so?
I you are correct! Why do the rich don’t pay their fair share?
Beauty: Who is to say what is fair?
@@RetirementTalk43 I would argue fair is that they pay taxes like us poor and middle class people!
@@Beautyrest575 In terms of SS taxes , they do pay the same 6.2% on the first $168,600 in earnings like the rest of us. If they pay taxes on a higher amount of wages, is it fair that they would then get a higher benefit than the rest of us?
The 25k threshold should be raised so more people are not paying tax on social security income.
allen: You have my vote.
Yes. And the fact that the money we put in was already taxed, so taxing the same money coming back out at an ordinary income tax rate, is absurd. I could understand 'maybe' if it is taxed at a LT capital gains rate because its mostly interest your taking back out, but for sure raise that threshold - maybe 80k or something after all these years, and then index it to inflation.
@@austinburns4213 YES… 25k is way to low.. increase it !!!!!!!!!! my elder mother needs that increase.. every dollar she can keep helps as a low income retiree… she brings in t total of about 40k a year but has assisted liveing expenses of about 80k a year… she needs help by not taxing her social security...
I don’t care all I know is I won’t be able to handle Harris/Waltz 🙄.
geril: Why?
@RetirementTalk43 they are radical socialists, Harris wants to spread your wealth to other people, standby if they win and get a super majority.
Venezuela was the 4th richest country in world, now about 150th, dirt poor.
She saying she wants to put price controls on food, give 25k for new home owners, can you say, INFLATION.
Trump will not be able to get that passed through Congress. His own party will never go for it.
Jeff: I think Republicans are more likely to support this. It was a Republican that presented the first bill.
@@RetirementTalk43 You may be right but I am skeptical. I haven't seen Republicans willing to give a long term tax break to anyone other than large corporations. Regardless, I don't think you will see a bill such as this make it out of Congress with opposition most likely coming from both parties.
Will never happen.
@@RetirementTalk43 I cant understand why any party would not support raising the number on when social security is taxed.. its WAY TO LOW now….
Brainiac Jeff knows the future. He sees all. A legend in his own mind💯🤣✔️🤡🖕🏽
Campaign promises are a dime a dozen.
Hugh: If only more people understood that.
Don't want to get political so I'll just comment on the taxation side of it. I think that much like the Alternative Minimum Tax, the SS tax thresholds need to be adjusted from the levels they were at its inception to reflect what now passes for middle class. Not so sure I'm into the 200% idea but I dig that you threw it out there for us to chew on. Love your perspective on this, please keep them coming!
Thanks, Tim.
I cannot understand why either party would not increase the income level for not taxing social security… 25k which is where my mother is.. its way to LOW.. she earns 40k a year in total with socail security, a small pension, and interest… dont tax an 85 year old with a small 40k a year income !!! its common sense...
Because all the taxes collected above the 25,000 threshold go into the so called trust fund prolonging
the longevity of social security.
It hasn't changed in 40 years and won't for another 40 years and longer - the objective is to have everybody paying tax on SS benefits eventually.
the thresholds should be raised for the amount you can earn before they 'take back' benefits. I wish they would raise it at least 20k more. I would actually be able to stay in my home if they did. Currently I will have to make other arrangements even though my house is paid for. I cannot see me physically working until FRA just so I can get the full benefit without penalty due to health issues. Thanks to inflation, my insurance will be extremely high. Taxes on my house is already at robbery levels. Maintenance is sky high if you want to keep anything in good condition. Every utility in my area has went up. So my options are to sell and move to a less expensive area. I live in SWFL so I will have to move somewhere North of my own home state, unfortunately, since not having insurance is too big of a risk in this area.
annie: It sounds like your problems go well beyond earnings caps on SS benefits.
@@RetirementTalk43 well that's pretty obvious. If i lived elsewhere i could afford to live at the poverty level as a single person. But not here.
Shocking that you can’t trust a campaign promise or a politician 😳
Failure: Right?
@@FailureatRetirement except Trump. He fulfilled most of his 2016 campaign promises. The dems in congress and the liberal federal judges stopped him in some cases. The border wall would be complete if not for the democrat socialist party. There are 2 major parties. The democrat socialist party and the liberal Republican Party (e.g. uniparty). There is no Conservative Party.
@@RexMoore1984MAGA 🤡
@@FailureatRetirement I’m sure all your promises are fulfilled over your adult life time. Perhaps you are the exception who has been married to your high school sweetheart and are still married to this day. If so, you and your wife are truly blessed.
@@RexMoore1984 you’re honestly pretty close. Married to my college sweetheart for 36 years and my life is very blessed.
I’m not sure how relevant that is but I can assure you that my promise fulfillment rate is much higher than any politician no matter what side of the aisle.
Thank you for clearing up these facts. If it sounds to good to be sure….well we know the rest. ❤️🌵
Thanks, James.
He didn't clear crap. This guy is a bozo
@@SlimGlynn1 Do I amuse you?
It was good to hear you talk about what a president can do. Unfortunately too many people believe a president can change things unilaterally. I doubt any significant changes will be made until around 2030. It is strange to me to think that 2030 is just around the corner. I do agree that the thresholds ($25K single and $32K joint) need to go up and be inflation indexed. It would be rational to increase those thresholds by the inflation since they were enacted and implemented (1983/1984). If you did that the single threshold would be about $75K and the joint threshold would be about $96K. I also like your suggestion that higher income people pay tax on some multiple of their social security benefits. As you said, that will never happen. People do need to be aware that taxes on social security go into the trust fund and extend its life. Eliminating taxation of social security will shorten the time until the trust fund runs out (although not by much).
todd: Spot on.
You mean the ignorant masses who went to a government school?
@@RexMoore1984no, the people who graduated from Trump University and MAGA 🤡🤡. In other words, people like you.
SS is a pay as you go program. There is no ' lock box' full of money in the trust fund. Benefits are paid from the taxes that are collected. Any surplus is converted to treasury bonds, AKA iou's.
@@Thedevilsminion-td1sr Where do you think the money comes from to make up the current shortfall in SS revenue?
Some people think that the person in the Oval Office can do almost anything and that is just not true they dont have the Purse Strings !!!
Depends on the issue. In some aspects them have no authority , in others, great authority.
many of my mothers friends say they dont even file taxes when they hit 80… and the IRS never contacts them.. I’m wondering if thats not the ticket to not pay taxes on social security… when you hit 80 simply stop filing…. my mom will stop filing next year at 85….
Age has nothing to do with it; they may be earning less than the standard deduction.
@@joemarc62 No they are like my mother at 80t hat owed taxes.. they just simply stopped and nothing happend….my mother is now 85 and still owes some tax.. she will stop this year just like her other friends that stopped...
Her friends stopped at 80 and are now 85 with her and they owed taxes and nothing happend.. so age does seem to matter… I will do the same thing when I turn 80
we are not talking 10’s of thousands of taxes.. they are in the 3-4k of taxes owed.. and do not file… IRS has never contacted them.. my mother also owes about 3-4k taxes a year and she will stop this year filing..
@@leehaskins307 If they owe taxes the IRS will catch up eventually.
As a tangent to what a US President can and cannot do and what their role in government is, I am increasingly aghast at how much people expect a president to do for them personally. Not just the country, but their bottom line. This distorts the election into a race to promise the most things that have little to do with (or nothing to do with) the duties of president. Getting a better job and education is on you, not the Pres, sorry to break the news. Supporting the economy, taxes, budget, borders, declaring war, confirming SCOTUS candidates, and securing healthcare is the congress. Then the administration takes the credit (or blame) for things they didn't actually do or can't control.
As far as Social Security goes, a dozen or two reasonable congressional proposals have been made and analyzed for impact by the CBO over the past several years - most of which appear to make sense, but with variable value in fixing the budget problem. The least painful options could be passed now - such as modest changes across several fronts, taxing income over 400k, and small changes to FRA. I thought the 400k option was a done-deal, but it just disappeared overnight and was never heard from again. ?! Unfortunately the more palatable options will cease being options the longer we wait, and instead shift to a handful of more painful options like significantly reduced benefits and new bend points to calculate lower benefits, substantially increasing the early SS age and the FRA age, and drafting a higher wage tax rate. Also, when I hear talk about increasing the wage tax rate, I never hear talk about impacts to the self employed: small businesses (think supplemental retirement jobs!) like part-time insurance agents, handymen, UA-camrs, Uber divers, consultants, gig workers, independent contractors. Any SS tax increase will be double for them, because they pay both the employer and employee shares - talk about creating inflation to hire someone.
Austin: It makes sense to vote in your own best interest, most of the time. Sometimes it is better to vote for the greater good.
“For a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.” - Winston Churchill
Good evening Howard, thank you for being well prepared and the voice of reason with rational sense. Both sides of the political landscape through out what ever they can to the public and as they say, lets see what's sticks to these gullible folks. Don't expect much tax relief from either candidate.... we may see a bit more tax relief with Trump, time will tell.
MtoF: Yep, time will tell.
I will believe it when i see it
joe: Believe what?
Social Security is more of a benefit for people at the lower end of the income scale. My brother in law’s SS would barely cover his property taxes. He’s gotta keep working!
It sure helps the middle class too.
@@RetirementTalk43 the people who pay the most money in to SS, see it as less valuable. Especially those with enormous property tax bills.
You can easily control your property taxes. The easiest way to move, but the best way is to elect officials that will reign in spending and cut property taxes.
@@paullampert6990 I'm not sure I follow the relationship between income taxes on SS and property taxes.
@@paullampert6990 I don't know anybody that gives up their social security benefits no matter what their income or and no matter what their "property taxes". 😊
I think taxes on SS will change. But of course I don’t know how.
Something to think about is the effect a change might have on Roth conversion decisions.
johnny: Possibly.
I’ll qualify for nearly the largest amount when I start taking SS. Sure I’d like to not pay any tax on it as I plan to live on just my SS. Me and the spousal for my wife will be close to 6k a month. That more than we’ve ever had to live on our whole lives.
It’s likely just a worthless campaign pledge.
52: Of course it is worthless.
People that would believe Trump are worthless also
Couples aren't taxed hardly until about $88k/yr. Does this even matter?
Why wouldn't it matter?
@@RetirementTalk43 Because federal tax rates are so low under $88k/yr. Are you saying most social insecurity recipients are above this?
@@7SideWays No, I am saying that taxing a couple on their SS benefits, even at a 10% rate on 50% of their benefits, is an issue that needs to be looked at.
@@RetirementTalk43 thank you, didn't know it was taxed even less than I thought. Raising the cap on income it's taken out of seems a more worthy hill to fight for, but carry on. Talking about taxes, even extremely low ones, gets traction I'm sure.
Taxing social security is one way the government can transfer social security money into the general fund. I assume that is where income tax on social security ends up.
It actually goes into the SS fund not general.
Bill: those taxes go back to the SSA. They totaled about $50 billion last year.
I believe, overall, democrats & republicans agree taxing social security benefits is wrong because they were taxed already. Thank you for educating us on so many topics
Thanks for watching Squirrelly
There are lots, and lots of hidden numbers out there. A big one is the non-working spouse. Younger female spouses with little to no work history was common but is being greatly reduced. Statistically she drew his full check for 7 years after his passing, and she drew 35% of that amount for 12 years as a spouse. It is quite common that she drew more total dollars than him. And in most of those cases social security lost big money as the couple could easily draw 200% of what was paid in. The second one is the percent of social security returned in 1040, which is growing like crazy. No one will fix social security because inflation is fixing it through making more and more people pay taxes on social security. These two factors alone may close 50% of the under-funding gap.
what: I'll make back what I paid in taxes in under four years of benefits. If I live long enough, I will easily triple my money.
@@RetirementTalk43 That math boggles the mind. A dollar paid in; in 1979 isn't the same value as a dollar paid out in 2025.
@@whatsup3270 No but, I'll get a lot more of them.
Don't the SSA bend points address means testing?
If so, why do you want to add more means testing via taxation?
No. The SSA bend points are equal for everyone. It's like putting sand in a bucket-the first scoop everyone pays zero taxes, 2nd scoop everyone pays this same set amount, 3rd scoop everyone pays this set amount of taxes, on and on.
wudda: Taxes already exist as a form of means testing. I'm just saying they should be more extreme and progressive.
@@LisaLisa-l8y I view bend points as being similar to a progressive tax schedule where the higher your AIME, the less of it you get to keep.
I agree the bend point schedule is equal for everyone - just as a tax schedule is.
Correct me where I'm wrong...
A politician will say anything to get elected, thanks for exposing the truth.
Furnce: The question is, what will the populace believe?
@@RetirementTalk43 everybody has to figure things out for themselves, it’s the only way.
@@furncemanjim It doesn't hurt to try to help those ignorant about the issues.
@@RetirementTalk43 I know, there is no doubt you are right, I guess it all depends if people are open minded to reason, I will give you an example, I was talking with a person the other day about our local property taxes going up, this is something that happens every six years (no matter what), they were dead set that it was Joe Bidens fault,I explained to them in detail that it’s a state law that has been in existence forever, after wasting my breath for ten minutes they said ok but I’m still blaming it on him because I hate the SOB, so you see most of your reason and common sense will fall on deaf ears, they are too filled with hate to have any common sense at all.
@@furncemanjim Sad.
The man with the small hands and orange hair lies all the time.
So trust the laughing clown?
One thought would be to increase the credits to get social security. I believe you only have to work 10 years to get it. You could increase that to 15 years? Just a thought.
No, you have to work at least 35 years. SS takes your 35 highest earnings years. The 10 year thing might apply to those born before 1960. Not sure on that.
Do you go on Trumps Truth Social? He posted 37x in a row, a bunch of gibberish nonsense within 1 hr. He's deranged w/cognitive decline.
Our new American Rockstar , KAMALA!!!
And you could keep up with his travel schedule, rallies,interviews, etc? okey-dokey! One could only hope to be that active at 78.
Trump's proposal, if passed by the House, could get through the Senate with 51 votes under reconciliation. The fairest way to shore up SS is to raise the income threshold on which SS tax is collected.
I wouldn't say that is the fairest way, because the highest earners get the least benefits from SS. The fairest way is for the FICA percentage to be increased for all workers.
@@bradk7653 That is true no matter. That is the result of a progressive tax system. Unless we are going to a flat tax, that is the system we are stuck with. Why is there even a threshold? If it is a tax on wages, it should be all wages. Why do high earners get a break?
devil: It would be difficult to pass a bill under reconciliation for this. Otherwise, it would already have been done.
@@bradk7653 social security is designed to give a higher relative percentage to the lower earners. It probably would be fair to raise the threshold. It would not be fair to raise FICA taxes on the working poor.
@@RetirementTalk43 There hasn't really been a push for it till now. I haven't seen any legislation recently. If it was a clean bill it could get through
Trump can push congress to pass it. Most of the Republicans will agree with Trump and some of the Democrats in swing states could go ahead and vote for Trump proposal. Biden proposed a bill to pay off student loans and a few people got their student loans forgiven.... so it can be done !
jimmy: It is hard to imagine any Dem supporting a Trump proposal, except for Manchin.
@@RetirementTalk43 Probably right .. but it's a tool in the Republicans tool box for the next election... there are many people depending on SS and they vote. I think it's a very smart move on Trump's part to push for this and maybe they will settle on a lower tax rate for senior and/or higher deductions and/or tax exempt up to a certain amt. etc .. The main thing is that Trump wants to lower taxes for seniors which is a great thing.
What trump and harris say, are 10 different things. RFK Jr 2024
I could not "bear" it ,😊
To date, Harris hasn't articulated a single policy, but her VP pick is not a fan of free speech.
MAGA 🤡🤡
Reb: How is Walz not a fan of free speech?
@@RetirementTalk43From NRO: After Vice President Kamala Harris picked Minnesota governor Tim Walz as her 2024 running mate, a video made the rounds showing Walz saying in an interview that there is “no guarantee to free speech on misinformation or hate speech, and especially around our democracy.” Guess who gets to define hate speech? Politicians and leftist orgs such as GARM. Good riddance. Pkus this guy pushed so much policy around government Covid misinformation.
@@RetirementTalk43From NRO: After Vice President Kamala Harris picked Minnesota governor Tim Walz as her 2024 running mate, a video made the rounds showing Walz saying in an interview that there is “no guarantee to free speech on misinformation or hate speech, and especially around our democracy.” Guess who gets to define hate speech? Walz pushed policy based on government Covid misinformation.
After Vice President Kamala Harris picked Minnesota governor Tim Walz as her 2024 running mate, a video made the rounds showing Walz saying in an interview that there is “no guarantee to free speech on misinformation or hate speech, and especially around our democracy.”
Screenshot 1.
It would help if you changed your channel name to: The liberal clown show
Slim: Why are you so afraid to have a conversation about your issues with my channel?
What makes you think I am a liberal?
America has a new Rockstar! Kamala Harris !!!
pensacola: Time will tell.
Another neoliberal.
@@williamblack4097 MAGA 🤡🤡
@@williamblack4097 Who? Harris, Pensacola or me?
@@RetirementTalk43 Harris
Recently read a paper on this. The income thresholds were intentionally not inflation adjusted because the intent at the time was to at some point in the future have everybody paying some tax on their benefits.
jeff: I hadn't read that and hope that isn't the case.
@@RetirementTalk43 From the paper: "Because those income thresholds are not indexed to prices or wages, the proportion of beneficiaries who pay taxes on their benefits has increased over time. Eventually, the taxation of Social Security benefits will be roughly equivalent to the current-law taxation of pensions and annuities-which, according to the legislative history of the 1983 amendments, was Congress' intent when it set the threshold for taxation of benefits in nominal dollars." Search with "ip2015 issuepapers" to find the link to the paper.
@@jeffs3627 Thanks Jeff.
Yes that was the plan. The same with the proposals to start collecting FICA taxes above 250k or 400k. Inflation will eventually push everyone into those thresholds, just like it is pushing people into the 50% and 85% taxable thresholds.
It just sounds weird that people pay into SS their whole working lives and it's (FICA) considered a tax. And then when you collect on it, you are taxed on it...🤨 Yes, of course there oughtta be a means-testing bracket for already wealthy, I suppose. I don't know. Congress has such a track record of kicking this down the road, who knows what, and when, they will do anything. And goodness, don't take any advise from experts! LOL, I'm sure there are many great ideas from very smart people in the fields of pensions, actuarials, etc...
ph: Politicians, generally, do whatever they think will keep them in office.
@@ph5915 Means test? You mean steal money from someone who paid in, was somewhat successful, and then screw them after 50 years. Brilliant idea Mr. Marx.
Trump, along with many other politicians that run for president, thinks they’re going to be a king or some other kind of a dictator and they can wave their magic wand and it’s the law of the land. 😂 I think a lot of their supporters think they’re same thing too.
The sad part of this is that people don't understand what Presidents can or cannot do.
Kind of like how Grampy Joe promised to unilaterally forgive student loan debt. Come on, man!
And find a cure for cancer.
pam: That was less clear as to whether he could or couldn't do so but, it pays to be skeptical.
doesn't matter what he says because he's not going to be reelected-many of his previous supporters are finally seeing the light- but he does love the uneducated
Nothing will shock me.
@@allrightnow3653 How many degrees do you have? I have several and proud to be a deplorable!
@@RexMoore1984 TRUMP 2024!!!!!!!!!!!!!!!!!!!!!!!! I'm also an educated deplorable!!!
The only way Trump won't be elected is if the dems steal the election again with millions of dead, illegals, and duplicate voting occurs again.
@@allrightnow3653 All of Trumps kids would beat you on the golf course and in the classroom. Your “uneducated “ remark smacks of elitism and narcissism. Your candidate has not received 1 delegate vote in 2020 or 2024. That is a threat to democracy in your parties terminology. BTW … we are not a democracy. You would know that if not for folks of your ilk removing the pledge of allegiance from the classrooms. … and to the republic for which we stand (not kneel).
True, Trump can't do anything on his own, but it won't get done at all if he is not pushing for it. Give him 56-57 senate seats and there will be a few Dems that will vote for SS improvements and it could pass.
It is a pandering stupid idea that will just add to the deficit.
brad: I'd bet a lot against that happening.
SS (and much of our tax system) is already benefiting older generations over younger. Why add to the SS trust problem that will already be impacting young people more than old people?
BF: For votes from people who don't know how laws are made.
@@BF2021-kf8xz Tax rates are lower now than under King Obama. Joe wants to end the Trump tax cuts. Socialism which has never worked is Kamala mantra.
@@RexMoore1984MAGA 🤡, your orange Jesus gave us the largest deficit ever.
He lying
What else does Trump do?
Ya think?
@@RetirementTalk43Sure, he will have infrastructure and heath care plans any week now too.