Social Security taxation on earnings has been part of wage withholding for all living Americans. The so-called retirement fund and/or promise to Americans by the government is the money myth of all time. Early in its implementation the government promised not to tax the
benefits at retirement. However, not only are they taxing Social Security, but the two-tier system of the provision income test, intentional or not, can expose up to 85 percent of benefits to ordinary income tax.
The capital gains trap is so insidious to seniors that as they lower capital gain, tax is paid on long-term gains, but the entire gain is used to calculate Social Security benefit taxation. Even most tax-exempt muni bond income, although tax-free by its issuing jurisdiction, is part of the provisional income test for Social Security benefit taxation.
Steve and Ken address the punitive positioning of all forms of income for the provisional income test resulting in a stunning exposé on the real erosion of Social Security Benefits.
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Steve Savant is the host of the daily producer show, Let’s Get Down to Business, and the weekly consumer show, Steve Savant’s Money, the Name of the Game. Steve is the number one online author and videographer of insurance content. During his 30-year career in the financial services industry,... More