Posted 2 weeks ago on Jan. 31, 2018, 9:47 a.m. EST by agkaiser
from Fredericksburg, TX
This content is user submitted and not an official statement
In SOTU 2018, Trump boasted that, because of "tax reform," no American married couple will pay income tax on the first $24,000 of earnings. In 2013 none of the 43% of households making less than $30,000 paid federal income tax.(1)
Low income households have always paid Social Security Payroll tax on all of their income.(2) Higher income "earners" pay relatively little into the Social Security Trust Fund. Republicans have borrowed and spent the Trust Fund on military contractors, tax cuts that overwhelmingly benefit the billionaire class that own the government and other frauds and scams. Such welfare benefits political donors, fraternity brothers, friends and relatives.
They've been saying all along that the SS and Medicare benefits must be cut to balance the budget and save the trust fund.(3) But that is insurance the (SS payroll) tax on the poor has prepaid. What we get in return is our share of the tax cut. We will only pay federal income tax on the first $24,000. That's down from $30,000 a few years ago.
(1) A little more than 43% of U.S. households - or 70 million homes - will end up owing no federal income taxes for 2013. ... The households with zero income tax liability are not evenly distributed across income groups. The majority this year - nearly 67% - have incomes below $30,000.
(2) Social Security's Old-Age, Survivors, and Disability Insurance (OASDI) program limits the amount of earnings subject to taxation for a given year. … We call this annual limit the contribution and benefit base. For earnings in 2018, this base is $128,700.
(3) As a result of changes to Social Security enacted in 1983, benefits are now expected to be payable in full on a timely basis until 2037, when the trust fund reserves are projected to become exhausted. ... immediate reduction in benefits of about 13 percent, or an immediate increase in the combined payroll tax rate from 12.4 percent to 14.4 percent, or some combination of these changes, would be sufficient to allow full payment of the scheduled benefits for the next 75 years.