Is it possible?
It’s one of the Government’s sneaky ways to get more tax money out of Americans.
Congressional lawmakers like it, because they can say they didn’t raise tax rates, but at the end of the day, taxpayers have less money.
Because the Government controls Social Security, it is the easiest way into our pocket. Back in 1983 President Ronald Reagan signed into law that up to 50% of social security could be taxed if you met certain income tests. Today, up to 85% of social security can be taxed.
So what are those tests?
It’s called “means based” testing. They look at the income you have from different sources and determine if you have the “means” to support yourself. If you do, they take some of your social security away.
It’s Not A Tax, It’s A Penalty Tax
Means based testing penalizes those who have set money aside from other sources to prepare for retirement. In any other situation, it would be considered theft. They took the money from you, and your employer who pays in, and then took it away from you.
200% Tax On Social Security
Expect to lose your benefits at some point in the future. They will use means based testing to make you pay tax on 100% of your social security. In fact it is not out of the realm of possibility that they would make you return all of the social security with a 200% taxes on that money.
They would “means based” test you, and then determine you don’t need any of your social security.
And, remember they make us pay taxes on that money when we pay into the system.
That’s called double taxation.