The Great Injustice of Taxing Social Security Payments for Retirees

Taxing Social Security Is an Injustice

When signed by President Franklin D. Roosevelt on August 14, 1935, the Social Security Act became the first and only perfect law in American history. It would provide funding for retired American workers. The amount would be based on income earned until the age of retirement, and combined contributions from the employee and their employers. It would pay for itself. It is important to note that only a few retired Americans have ever received the full amount of their and their employer’s contributions.

I’m sure you are asking “Why is the right-wing constantly complaining about social security going broke? Shouldn’t there be a surplus?” The answer is simple, and the truth. For 87 years politicians have been stealing money from social security to fund projects which help them win elections.

In 2023 social security recipients like myself and my wife, will receive a substantial increase resulting from the ‘greedflation’ of 2022. This will force millions of recipients to pay taxes, again, on their only or primary source of income. No matter how you look at this, it is double taxation and immoral if not illegal.

Corrupt Government and Social Security

Until 1984, social security payments were not taxed. However, because of an incompetent and corrupt government, which continues to give tax breaks to the super-rich and a wasteful military, our oldest living Americans are being forced to make up for their failures. Although our payments reflect our contributions, we will be taxed a second time. This is corruption, literally at the highest level.

This is a perfect example of how our government and the creation of professional politicians have failed the American people. This single situation proves that ours is the worst, most incompetent, and most corrupt government in the world of developed nations.

This will make you furious and possibly make you laugh at the same time. Here are the government’s explanations for double taxation.

It’s not double taxation because the funds you collect don’t come directly from your taxes. Your taxes are paying for today’s beneficiaries, so the benefits you receive will be from someone else’s payroll taxes.

Payroll Taxes

You have to think about your payroll taxes as a premium into a retirement account. Just like distributions from retirement accounts, Social Security benefits are also taxable income.

Not all of the benefits you will receive will come from the tax you paid to help fund the system. Some of the benefits come from interest on the trust funds, some come from taxes collected, and the rest comes from payroll taxes.

It’s a “contribution,” not a tax. This allows the IRS to tax you on the money you put into Social Security and the money you receive out as a benefit — because, on the way out, it’s technically not a tax. (I don’t care what you call it, it’s a tax! The original Federal Insurance Contributions Act (FICA), the Social Security Administration, and the IRS all explicitly refer to this as a tax.)

This is the most egregious “politi-speak” I have ever read. It’s disgraceful to misdirect the facts. The absolute truth is your government is composed of crooks.

The Truth Lives Here

The truth: most Americans have stronger feelings than distrust when referring to their government. The word “hate” frequently applies. The 90 percent of all Americans who work hard for their money are forced to pay for the lives of luxury and privilege experienced by the 10 percent, including the government you pay for, who do absolutely nothing to earn their inflated income.

Will Rogers: “It’s a good thing we don’t get all the government we pay for.”

Just think about the damage they could do.

By James Turnage, Novelist

Sources:

Social Security Intelligence: The Double Taxation of Social Security
AS: At what age is Social Security no longer taxed in the US?

Top and Featured Image Courtesy of AFGE’s Flickr Page – Creative Commons License
Inset Image Courtesy of 401(K) 2012‘s Flickr Page – Creative Commons License