Should Social Security be taxed? – Scranton Times-Tribune

Should Social Security be taxable as is the case today?

And is retirement-dollar support designed to be a response to hundreds of thousands of families placed in that position?

Too many people have only Social Security to rely upon when they are faced with rising prices, inflation, and meeting mortgage and other high costs that need to be financed in some fashion.

Paying money on taxable costs makes no sense to any nation paying taxes on that money, especially for a region such as the Pocono-Northeast with a high incidence of older residents.

Therefore, something should be done to change this approach and find other ways to meet federal needs related to supporting tax needs. It is reported that Social Security was not taxable until 1984.

While social security payments have shifted upward over time, however income support that result in a retiree’s benefits being taxed have not. But, the extraction of taxes based upon a retirement support mechanism just does not made good sense.

States, generally do not receive financial support from Social Security taxation, so why does the federal government do this?

Within the Pocono-Northeast, there is little known about this process as may be the case in geographic areas elsewhere. The need exists to enhance citizen and family knowledge about the taxation of Social Security and to encourage as many people as possible to support the removal of taxation of Social Security.

It is probably the case that very few people know that social security payments are taxable.In this region, here are a few steps that might be taken.

• Have the media prepare and demonstrate the extent to which Social Security is taxed at the federal level.

• Develop a regional task force on this topic throughout each county, and hold meetings todiscuss this topic.

• Bring in specialists, accountants, attorneys and others who have some knowledge abouttaxation and encourage discussions about such taxation.

• Since required minimum distributions much be taken from 401K investments, taxation dollars should be considered each time that happens.

• Congress should be encouraged to change the current system and pass laws that remove any taxable system that exists for social security.

• The elderly have only a certain amount of opportunity to spend, and therefore this current system is not sensible for their spending process. In addition, not allowing real estate taxes to be a responsible way to be federally and state processed is another issue that needs an exemption status.

In any event, there is a need to have knowledge ahead of any time that this process exists.  Taxes in retirement is not acceptable in today’s environment and changes should be made as soon as suitable.

Learning more about what is taxable and what steps can be taken to remove this from the current federal system would be an appropriate means to improve how and in what manner such taxation isnot good for retirement stages across the nation.