The thought of retirement makes me cry especially in this economy and taking care of my elderly single sister too. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you weren't to blame for.it's especially difficult for people who are retired.
True, It has never been easier to understand how to build your money after retirement than it is right now with the inflation, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investments, in my opinion, are complex.
@@HolySchmidt I'm guessing this 'channel' started out as an idea that grew into it's current form. I learn a lot here and I love it! Maybe sharing this with you would be like "giving something back"? Quote: "When a man's work becomes his hobby, then his tools become his toys". (cool ;-)
I don't mind the SS being taxed, but it was never indexed. The rates were set at $25,000 for a single and $34,000 married back in 1983. Today those amounts should be at least $45,000 for a single and $70,000 married.
This was the flaw in allowing corporations to stop offering pensions which paid guaranteed amounts, and replace them with 401k which can take a nosedive at any time. Since old age is guaranteed, it makes no sense to have retirnement plans that aren't guaranteed as well.
@ - a pension plan is just an annuity that was managed by your employer. One can set up an annuity inside their IRA to create their own pension. Just do a rollover from the 401k to IRA, which costs nothing, and you are then able to invest that savings in many more ways, including annuities.
What is overtime? Employers have a habit of "upgrading" their employees to exempt so they don't have to pay overtime. Family Dollar had a lot of "managers"
Yeah, tell me about it. I worked as a software developer and there are special federal rules making us exempt from overtime. A lot of companies take advantage of that and it's common for companies to "require" you to work 50 or even 60 hours a week. Oh, they don't say it's required. But the annual promotions and raises are coming up, and that's also when we fire underperformers - wink wink. I always worked for good companies that didn't play those games and while I never got a dollar of overtime I almost always got comp time, usually more comp time than I'd worked overtime. But companies like that are getting harder to find.
Please read Project 2025. One goal is to do away with overtime, by extending the period over which it’s calculated. Trump can make an easy promise not to tax something that no one will actually earn. The real goal of Project 2025 is to create a permanent underclass with no 8-hour workday and no 40-hour workweek and no child labor protections.
The biggest bugaboo for me is taxes on SS. In 1935, Rosevelt said that SS benefits would never be taxed. Then came 1983 when Reagan proposed that up to 50% would be taxable and it became law. At the same time, bands for determining provisional income were developed but were never indexed for inflation. That’s right, never indexed for inflation for more than 40 years-all by design to generate even more taxes. Then comes 1993 with Clinton, who made up to 85% of benefits taxable. We’re now stuck with SS where greater than 40% of recipients have their benefits taxed. Awful. The government was certainly aware of these issues in both 1983 and 1993 when the changes were made yet did nothing to protect seniors. What angers me is that SS recipients are the most financially at risk group in our society and yet the government could care less. Truly awful.
Hidden de facto reductions in the Social Security Retirement benefit including the increase in the "full retirement age" which effectively reduces the benefit increase from waiting until age 70 to get the maximum "delayed retirement credits"
@ the percentage of SS recipients whose benefits are taxed is above 40% but don’t know the exact number. So, greater than 50% but less than 60%, of SS recipients’ benefits are not taxed.
We also have Reagan to thank for the economic and political division that has developed in this country since his administration. The country was much more cohesive before the 1986 tax act when there was much less of a wealth gap.
Has the government ever kept their word? Look at the Native Americans that the government made treaties with and broke most of them. Remember Bush "Read My Lips, no new taxes." You have to take everything they say with a grain of salt.
In 1983 Social Security was close to not being able to pay the benefits, so they added the tax provision and raised the retirement age and other things. The $2.7 trillion fund is again being run down to empty around 2033-2035, and eliminating the 50% tax will exhaust the fund that much faster. It would be better if Congress spent their limited time on fixing social security so it goes another 50-75 years. There are lots of videos and articles on potential fixes, including this channel I believe
@@20thcenturyrelic In 1983 they only took SS tax up to $35,700 this year it's up to $168,600. It has increased much faster than the COLA they give back.
Just lift the lid on FICA taxes the people making over $168,000 a year will be taxed on their full amount too. Then adjust some of the formulas which are antiquated and make people that hardly make anything have to pay taxes.
If you want to lift the lid on the $168k then should these earners be eventually receiving 7k per month SS checks. The current process is already rigged against high earners and re-allocated to the lazy low income earners. And then you want those who hardly make anything to pay taxes? 😂🤣
@@f430ferrari5 On the paying side yes it's rigged against high earners. But what seems never mentioned is the spending side other than social spending. Who benefits more from the US military? The poor? You think they give a crap if Russia or China took over the US? Who benefits more from Federal highways, airports, rail? These lower prices for every one, but a poor person spending $20k/yr vs a person spending $200k is a huge difference in benefit. The lazy low income earners? Ya mean pretty much everyone making the lifestyle of the high earners possible? Lazy bums.
@@waterbug1135 why change the subject. So you lose another and trying to nitpick on some other area. We all benefit more from the US military and it’s usually those who don’t have options to attend college to join the military and obtain benefits. So it seems to help the poor? So now you don’t care if Russia or China took over the U.S.? 🤡😂 There is more than enough money for what you described. Fed highways, airports, etc. The US is giving away billions to other countries and even non-citizens. There are police chiefs making more than the US President. Look. If you don’t like your way of living. Too bad. You don’t deserve it from others. Earn it. Work harder and smarter. Just a complainer.
If no tax on social security is passed, that's going to make it interesting for those of us who are delaying collecting SS until age 70. Many of us might be compelled to start collecting sooner.
Most people who actually live off Social Security don't pay federal taxes on it now. Only high income people pay tax on Social Security. This is just another tax break for the rich. You want to help people? Increase Social Security! Add dental and eye to Medicare!
When the tax on Social Security was enacted in 1983 it was only aimed at the top end income levels. $1 in 1983 would be equal to $3.17 in 2024 per government statistics. Adjust the worksheet and leave the tax the same. It would again aim the tax at the top income levels not the majority of middle class people.
Trump followed through in 2016 and folks like you have been benefitting since. Time to go to the next level and entirely exclude SS income being subject to income taxes no matter what other sources of income there is. Will benefit retirees. No income taxes on tips either.
Luckily Trump is not a politician. Trump kept a far larger percentage of his 2016 election promises than anyone ever has. The few he didn't weren't for lack of trying. Grow up.
Great points and Im in agreement with your assessments. I would like to see the SS tax thresholds shifted up and then indexed for future years. Seems like taxing SS, a pay for play program, is being double taxed
We started planning to leave a year ago. Yes you do have to pay tax on investment income and interest earned, etc. I won’t get enough SS to be taxed on it fortunately. And who knows how long SS will survive if they don’t fix it. Thank god I have a ton of money market accounts and dividend stocks to cover shortfalls.
@@emphyrio it depends on whether the income is coming from the US or from another country, as well as whether it’s “earned” income or retirement income. Retirement income is taxed by the US at the same rate that it would be if you lived in the US, and the state taxes depend on how completely you’ve severed ties with your state.
some points to consider. most wait staffs are required to report their tips as the IRS assumes that the got one. it is taken out as part of their withhodings.
Hopefully the Unaffordable Health Care Act will be abolished and we can go back to buying a wide range of choices (hospitalization only, etc.) for a reasonable amount of money.
Politicians promise no tax on overtime because they intend to roll back or repeal laws that make overtime pay mandatory. If it is not paid, it won't be taxed anyway, so it looks good to the public but costs nothing.
For clarification -- and in case no one else in the restaurant business has already made a note of this -- at least in my state, actual tips are not taxed... they stopped that years ago. Instead, 8% of your sales are automatically taxed. So, if you are a server and you had 12 tables for an evening and each table's bill was $100 (12x100=1200) then you are automatically taxed 8% ($96) of $1200 for the night. And that is considered your tip. The low number (since usual tips are 18%) is assuming a certain amount of under-tipping or getting no tip at all.
How much is withheld is not the same thing as the tax you owe. It's an estimate with the main goal of keeping people out of trouble by not having the money at year end. True for Federal and pretty sure every state. What you wrote sounds like some state law to stop under the table tipping to avoid tax. A minimum tax type thing. You're not being taxed 8%, they're saying "we assume you had at least $96 of income on $1200 in sales." Wish I knew what state you were talking about. Looks interesting.
One problem with no tax on tips is that people who make most of their income from tips, will not get credit for or have FICA taken out. This will affect their SSA when they retire.
That's an excellent point. If the tipped worker is starting their job history it is less of an issue, if it is someone who makes tips as their regular full time 'forever' job then they need to take the money saved and invest some of it. But even so, they won't be seeing the employer match.
No FICA coming out = No SS benefits! No tax on SS = Medicare shortfall. Keep The taxes. Lower the proposed tariffs of 30% on Chinese goods and 10% on other countries' goods!
Im on ss, wife too. Dont care for the tax but it helps fund the program. I read that ss life will only be for 6 years then....unless somethings done. The ignorant and easily fooled in this country have cut their own throats.
Social Security is not going anywhere, but changes are definitely going to happen. Unless something is done, it is going to be underfunded in ten years, or so, at which point benefit cuts will be in order. But that is only if Congress doesn't take action to rectify the situation; and with the number of retired voters only getting bigger in the next decade, it is a virtual certainty that Congress will act.
@@calguy3838 The rethuglicans will propose to "fix" it by suggesting a bill with a poison pill in it that the other side can't accept. Then they can posture that it was the Democrats that killed it. But make no mistake, they will kill it if they can. They could not possibly care less about the average retiree
The taxes you pay on SS income don't help the SS program, it's just another tax to add to the general fund. If nothing is changed over the next 5-6 years, between both employer and employee contributions to SS, it will still cover about 75% of current benefits. There are many "reasonable" solutions but legislators don't have the balls to make a controversial decision, all they care about is staying on the government gravy train and self enrichment.
@@Columbus1152 Taxes paid on Social Security benefits ARE paid into the Social Security fund, not the general fund. A projected sixty-five million people will be collecting Social Security benefits in 2033 and 2034 when the program is expected to start having only enough income to pay 75% of benefits. That's sixty-five million potential voters. So between now and then, you can be sure that a LOT of legislators will undergo the testicular development necessary to make those controversial decisions.
@@nancyp.5490OMG!!! Trump is going to end SS!! No he is not. He is going to be a great leader and help our country for the better. Relax and get away from your tv news.
Have you made a video covering the upcoming age adjustments to SS? I’m nearly 59 and had planned on collecting SS at 62, but now it looks like I’ll have to wait until I’m almost 63. Is the age adjustments happening?
Substantial tariffs are likely to increase inflation. There are 2 potential reasons: 1) Most goods consumers purchase in Lowes, Home Depot, Walmart, Target, Amazon, etc. are imported. Tariffs on these goods would be passed from the US importer to the consumer. Historically tariffs have effectively been a tax on consumers. 2) As tariffs increase the cost of imported goods, domestic producers can profit more by raising their prices to slightly below those of imports. Most US companies would likely choose increased profits. With increased inflation, the fed may raise interest rates.
@@f430ferrari5 Those are largely targeted tariffs, which can make sense to specific situations. I'm not aware that Trump proposed targeted tariffs, but who knows.
@@jeffboatright who says they are “targeted” tariffs. You? Why didn’t you bring up before. So that is how you simply explain how tariffs are bad for the US but yet don’t even mention other countries use tariffs on other countries. You care to explain why those countries then use targeted tariffs on the U.S. Go ahead and explain. 💀🤡
@@f430ferrari5 Understand, they are bad for the citizens of those countries! They have a lower standard of living because of it. Comparative advantage lowers the cost of goods for all of us.
Can you please provide more about the bipartisan majority of the U.S. House voting to pass the Social Security Fairness Act, bipartisan legislation to eliminate the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO)? What does this mean?
I'd be fine with no tax on social security but I'm suspicious it's part of a longer term effort to get rid of or vastly reduce social security. Those lost tax dollars would either need to be replaced from somewhere else or expenditures would have to be reduced. Down the road a few years I could see politicians arguing that social security is too expensive and needs to be trimmed, then trimmed again, and again. And pretty soon there's nothing left. For too many people it's their one major source of retirement income. Pensions are a thing of the past and a lot of folks don't have the income to invest significantly for their retirement.
This!! My age group Gen X is coming up on retirement . Our age group was the first that didn’t have access tp pensions only 401ks . Back then, people didn’t understand them yet cuz they were new .
@@catherinesanchez1185 Gen X has had a lifetime to learn about the 401k and IRA. Didn't they learn simple math that 60 years old follows 50, which follows 40, which follows 30? I'm of the Boomer generation, I don't have any pension, only the 401k and Individual Retirement Account. Anyone who chooses to be ignorant on retirement planning, gets no sympathy from me.
@@horanzDefinitely did not mention Reagan as being the president who started with taxing SS in the first place. I listened to video twice to see if there was any useful information to send to friends & family, which there isn’t with all the uncertainty. I will believe it when I see changes. Politicians will lie to get your votes, then if they don’t follow through, nothing we can do.
@@MB-uy5khThanks for confirming. He either forgot to mention Reagan or is a republican that didn’t want to make Reagan look bad 😂 We’ve had so many broken promises from politicians lately.
overtime should not be taxed! been saying this for years. as an employee and a boss, its hard to get people to work. I understand because time spent with family is more important than money and when you are required to work overtime it takes time away from family that you will never get get back. What kind of price do you put on that? that price is to make it well your time away from family and that is to not tax your overtime. The government gets far too much of the American workers hard earned money. Especially for what they get in return.
Another solution is to cut overtime pay so you pay less tax. Happy? Many workers have been made salaried and get zero overtime. The case you are making is you don't like to pay tax. You'd rather other people pay. Me too. So I want you to pay. Time spent with family is more important? So quit your job. Seriously. For 22 years I've slow flipped houses. Buy a dump, slowly fix it up and sell it after 2 years. $500k of profit is tax free. And since my family lives in the house we spend 24/7 together. Living off this I pay no tax at all. And with $0 reportable income I get Medicaid which is $0 cost, $0 copay, $0 deductible. And get a free smartphone and plan via Lifeline. I didn't invent these rules, i just have to play by these rules. Anyone is free to do the same.
@@waterbug1135 The case i am making is OVERTIME shouldnt be taxed. And if you havent heard, there is a shortage of housing and not everyone has the ability to flip houses, let alone fix one up.
@@Msseminole Lol what world were you in more like??? Biden pulled us out of Bush’s $300 million dollar a day war with Afghanistan in 2021. Trump did nothing. Trump was Handed the economy from Obama and he ran it into the toilet. Trump spent double what Obama in 4 years. Gas was lower because there was a world lock down from Covid. World cost increases and supply chain issues directly influenced inflation post Covid which is now under control.
So, quick question, if Clinton in 1993, threw it out the window and raised tax on S.S. Who exactly started taxing S.S. In the first place in 1983?. And were any other rules as far as who can claim earned benefits from S.S., even if they had the required quarters worked. Put in place?
Wonder what the impact of a cashless system would have… so no business or individual can avoid reporting. Would this have a windfall tax potential. Plus nixing the penny.
If my neighbor on one side works at a convenience store and makes $40k in salary, and my neighbor on the other side of me works in a restaurant and makes $30k in salary plus $10k in tips, why should one get a tax break and the other doesn't?
Exactly! So people working a retail job for an hourly wage get to pay taxes but wait staff, valets, etc. get to skate tax free on tips which constitute the majority of their earnings?? Makes no sense.
A lot of ifs on that one. If our tax system is completely replaced by a national sales tax, and if there are no offsets for Social Security (or anything else), etc. I'd say a national sales tax in place of income tax is highly unlikely though.
@@HolySchmidt A national sales tax might be sold to the public as replacing income tax, but initially the income tax would get scaled back, and later it would get scaled back up so that eventually we would have both an income tax and a national sales tax. The government likes using the income tax code as a way to force behaviors. Want people to do less of something, tax it more. Want people to more more of something, give a tax credit for doing it.
When I earned tips, I never reported any on my taxes. People living on SS already pay little or no tax. Trump is only cutting taxes for the Wealthy Class and he's cutting Medicare and Social Security to do it. He still hasn't said where he's going to get the money to deport all the immigrants, build the border wall and jail all the Democrats. What new tariffs are going to generate that kind of revenue? How is this not going to cause a huge spike in inflation?
We are already running an enormous budget deficit and have a national debt of over $30 trillion. Now we want to cut taxes and reduce revenue even more? It doesn't make economic sense to me. I don't like paying taxes any more than anyone else but it takes a certain amount of revenue to run the government. Cutting the budget will not even get us close to closing that gap. For example, we could eliminate the entire defense budget and it would barely cover half of this year's budget deficit. It needs to be a combination of tax increases and budget cuts. Its called compromise.
Considering the last Trumpy administration ran the deficit up more than any other President, we don’t have much hope for it going down this time. Most of that money went into his pocket since he forced the government to pay for stays at his hotels. And, he still managed to lose all that money, as he has done for most of his life. Hence the reason for the grifting ads selling cheap watches, coins, books, etc.
Makes perfect sense. I'm 67. Cut my tax and borrow money to pay for it. I get to spend that money on booze and hookers. Then in 20, 30 years after I'm gone your grandkids get the bill. How is that not wonderful? Cutting the budget? Are you high?
I’ve been self employed since 1994 . Yup long time pay full boat on my taxes. I’m selling my business this December and retirement is weeks away. I’m looking forward to hopefully not paying taxes on my social security. Because I already paid them.
Thank you for not making this political either way. But the proposed tariffs will make all this pretty academic. Those tariffs if they pass [which is unlikely, IMHO]] will be a huge tax increase for all of us.
@@Msseminole Tariffs ARE taxes placed on imported goods. Whether or not they" bring jobs back" wasn't the issue nor did I address the issue of jobs.. Tariffs are an insidious tax because they affect the poor the most, who can afford them the least. The current taxes were quite expensive: The current tariffs "imposed nearly $80 billion worth of new taxes on Americans by levying tariffs on thousands of products valued at approximately $380 billion in 2018 and 2019, amounting to one of the largest tax increases in decades." The ones that are proposed are even higher.
My concern is bonuses will be considered tips and corporations will be taxed close to zero percent. I'm brushing up on my French. I understand you only have to pay US taxes which is zero because it's all dividends/cap gains.
Eliminating the tax on social security will be a little useless if they don't fix the SS trust. If Trump implements all of his plans, the trust will run out of money in 2033, and we will get a 20 - 25% cut in benefits.
Eliminating taxes on someone just because of their chosen job/profession is a BIG NO. It would encourage an elitist attitude that the country doesn't need.
Easier solution is to eliminate tipping. It makes no sense. Many places "tip" is added to the bill. Service really doesn't matter, good or bad. It's just a way to advertise a lower price than you actually have to pay.
Small taxes can affect investment decisions such as whether to choose tax-free municipal bonds over taxable bonds or do a Roth IRA conversion. I’ve been sitting on over $745K equity from a home sale and I want to invest on the stock market, how do I achieve this without being taxed twice?
There’s more benefit to holding fixed-income assets in tax-deferred retirement accounts as opposed to taxable accounts. If you're not who understands strategies to invest in the market, seek a Financial advisor to guide you.
Geoffrey, if the Social Security Benefits Worksheet was updated to include inflation since 1983, only a small number of us would be paying any income tax on social security. Adjusting the worksheet to include 40 years of compounded inflation would be a fair thing to do.
Only 40% of people getting SS pay any income tax today. Can't say I see the huge need to reduce tax by a few hundred dollars on people with millions in the bank. I'm with Warren Buffett on taxes for the wealthy. I did really well, and as much as I would like to take credit for that I realize I couldn't have without all the Federal gov provided me which was mainly funded by less wealthy people. I served in the Army 3 years to protect the wealthy. Poor people could care less if Russia or China took over the US. They would lose nothing because they have nothing. I don't think it's fair to push the cost of all the things wealthy people benefit from much more than they do. I was always happy to pay what I owed.
@@waterbug1135 " Only 40% of people getting SS pay any income tax today". Well, 40% of retirees is still a LOT of people. And many of those "retired" people are still working jobs, as the SS payouts don't even begin to stay even with inflation. So, those working retirees have their benefits effectively reduced when they are taxed on their full income.
@@waterbug1135I believe you’re thinking retired folks are mostly multimillionaires, you’re way off there, only a low single digit percentage get to a million in retirement savings. Also, I believe the American poor wouldn’t want a communist state to take control. How many fat Chinese or North Koreans do you ever see, even the poor in this system are living a much better life than in most of the rest of the world.
If the tax on Social Security benefits is not repealed, they should at least change it to somehow use incremental brackets. As it works now, as soon as you earn that one extra dollar that puts you over the threshold, half of your SS benefits become taxable, so that you will likely owe thousands in additional tax.
@@oliphauntsneverlie6227 You don't actually think the Republican Party has any interest in giving tax cuts to anyone except the 1%? LOL! I have a really cool bridge in Brooklyn to sell to you!
@ and as of a few hrs ago cops were working tons of overtime due to Covid absences. I’m aware of all those. Many cop pensions are based on “ high five “ years and I those yrs cops endeavor to work as much overtime to insure hefty pensions. I don’t blame them but it does cost the taxpayers
Most people are unaware that an arrest near the end of an officers shift leads to overtime for them automatically as they complete the booking process ….. happens more than you think. Always evaluate the police dept. in a town you’re looking to buy a home in. If you’re buying property where law enforcement is sheriffs dept. or state police, good luck ….. no oversight there
Most tips are reported because they are captured by the employer via electronic payments. People rarely pay restaurant bills with cash or even tip with cash in restaurants anymore. And most employers use a payroll service so if the employee is to be paid their tips, they have to go through the payroll system which flows through to the employee W-2 at year end. Earned income is earned income. There is no justification for excluding tips from taxation.
As an ex-pat, I think having to file and pay taxes on my foreign-earned income is frankly barbaric. The only other country in the world that does it is Eritrea, a dictatorship. I would gladly give up my "right to vote" to not have to deal with this burden anymore. The self-employment tax thing is the worst. 15% of my local income (which is very, very low) goes out the door, but I still have to pay all the local taxes on that. This keeps me from occasional consulting, as it would leave me with very little at the end.
Most Trump supporters have not read his book "The America We Deserve", where in a special chapter he calls the Social Security system "a Ponzi scheme" and explains why it should be eliminated, thusly kicking all retirees who need the pension checks off into the streets.
It is a ponzi scheme (that is just about to go broke and all the young people paying today will be left with nothing) and it should be eliminated and replaced with investing options. He never said anything about leaving anyone high and dry. Try not lying for a change. Leave the dark side.
It IS a Pomzi Scheme! Invest your own money! Your employer has to pay into your SS and so do you. Take that money and invest it yourself. If you did, after 38 years, you would have 3X more money for retirement. The government is not your friend.
Small taxes can affect investment decisions such as whether to choose tax-free municipal bonds over taxable bonds or do a Roth IRA conversion. I’ve been sitting on over $745K equity from a home sale and I want to invest on the stock market, how do I achieve this without being taxed twice?
There’s more benefit to holding fixed-income assets in tax-deferred retirement accounts as opposed to taxable accounts. If you're not who understands strategies to invest in the market, seek a Financial advisor to guide you.
Indeed, I did make use of a financial counselor. As I get closer to retirement, their advice has been really helpful. I thought compound interest on index funds wouldn't be sufficient because I started late. It's amusing how I've done better than colleagues who have more years of investment experience. I've profited more than $886k tax free.
My CFA ’ Melissa Terri Swayne’ , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
The idea of tax on SS needs to be either dropped completely or the income amounts should be adjusted up to current which again would have only a small amount of people to actually pay a tax on SS
The thought of retirement makes me cry especially in this economy and taking care of my elderly single sister too. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you weren't to blame for.it's especially difficult for people who are retired.
True, It has never been easier to understand how to build your money after retirement than it is right now with the inflation, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investments, in my opinion, are complex.
Found her, I wrote her an email and scheduled a call, hopefully she responds, I plan to start the year on a woodnote financially..
Grifters
You need to stop watching the MSM! I am retired and had never felt better!
Your presentation cool calm collected and well informed. Thank you
Thanks for selecting relevant topics to keep us informed.
you bet
@@HolySchmidt I'm guessing this 'channel' started out as an idea that grew into it's current form. I learn a lot here and I love it!
Maybe sharing this with you would be like "giving something back"? Quote: "When a man's work becomes his hobby, then his tools become his toys". (cool ;-)
I don't mind the SS being taxed, but it was never indexed. The rates were set at $25,000 for a single and $34,000 married back in 1983. Today those amounts should be at least $45,000 for a single and $70,000 married.
That makes it double taxed
I’m equally concerned about my IRA/401K accounts tanking than not having SS that I paid into all these years.
If he implements hsi eonomic "plan", our 401k's will definitely tank
It depends what you have your 401k invested in.
I would put at least 70-75% in safe stuff by end of year
This was the flaw in allowing corporations to stop offering pensions which paid guaranteed amounts, and replace them with 401k which can take a nosedive at any time. Since old age is guaranteed, it makes no sense to have retirnement plans that aren't guaranteed as well.
@ - a pension plan is just an annuity that was managed by your employer. One can set up an annuity inside their IRA to create their own pension. Just do a rollover from the 401k to IRA, which costs nothing, and you are then able to invest that savings in many more ways, including annuities.
Thank you for keeping us updated!👍
my pleasure
What is overtime? Employers have a habit of "upgrading" their employees to exempt so they don't have to pay overtime. Family Dollar had a lot of "managers"
Yeah, tell me about it. I worked as a software developer and there are special federal rules making us exempt from overtime. A lot of companies take advantage of that and it's common for companies to "require" you to work 50 or even 60 hours a week. Oh, they don't say it's required. But the annual promotions and raises are coming up, and that's also when we fire underperformers - wink wink. I always worked for good companies that didn't play those games and while I never got a dollar of overtime I almost always got comp time, usually more comp time than I'd worked overtime. But companies like that are getting harder to find.
Please read Project 2025. One goal is to do away with overtime, by extending the period over which it’s calculated. Trump can make an easy promise not to tax something that no one will actually earn. The real goal of Project 2025 is to create a permanent underclass with no 8-hour workday and no 40-hour workweek and no child labor protections.
Sometimes we have an employee to supervise. Mostly nobody but us managers.
Thank you, Geoff, for all your advice, expertise, and wisdom. Also appreciate your calm, low-pressure style.
2025 is the start of America's Reality TV show.
With no "Survivors".
I hope it gets canceled!
More like horror show
Hire a clown, expect a circus.
@@ottoMeansEight That's been especially true for the last 4yrs.
Thanks for educating us on this
The biggest bugaboo for me is taxes on SS.
In 1935, Rosevelt said that SS benefits would never be taxed. Then came 1983 when Reagan proposed that up to 50% would be taxable and it became law. At the same time, bands for determining provisional income were developed but were never indexed for inflation. That’s right, never indexed for inflation for more than 40 years-all by design to generate even more taxes.
Then comes 1993 with Clinton, who made up to 85% of benefits taxable.
We’re now stuck with SS where greater than 40% of recipients have their benefits taxed. Awful.
The government was certainly aware of these issues in both 1983 and 1993 when the changes were made yet did nothing to protect seniors. What angers me is that SS recipients are the most financially at risk group in our society and yet the government could care less. Truly awful.
Hidden de facto reductions in the Social Security Retirement benefit including the increase in the "full retirement age" which effectively reduces the benefit increase from waiting until age 70 to get the maximum "delayed retirement credits"
So 60% are not taxed.
@ the percentage of SS recipients whose benefits are taxed is above 40% but don’t know the exact number. So, greater than 50% but less than 60%, of SS recipients’ benefits are not taxed.
We also have Reagan to thank for the economic and political division that has developed in this country since his administration. The country was much more cohesive before the 1986 tax act when there was much less of a wealth gap.
Has the government ever kept their word? Look at the Native Americans that the government made treaties with and broke most of them. Remember Bush "Read My Lips, no new taxes." You have to take everything they say with a grain of salt.
Love the way you express what is proposed so that it is very easy to follow!
Thanks for being REAL
SS tax should be put back to how it was pre 1983.
Or, the brackets for taxing it should be raised. There's been a lot of inflation since then.
In 1983 Social Security was close to not being able to pay the benefits, so they added the tax provision and raised the retirement age and other things. The $2.7 trillion fund is again being run down to empty around 2033-2035, and eliminating the 50% tax will exhaust the fund that much faster. It would be better if Congress spent their limited time on fixing social security so it goes another 50-75 years. There are lots of videos and articles on potential fixes, including this channel I believe
fyi, old joe biden voted for both s/s taxes.
@@20thcenturyrelic In 1983 they only took SS tax up to $35,700 this year it's up to $168,600. It has increased much faster than the COLA they give back.
@@soxfanto keep the system solvent. No free lunch
Just lift the lid on FICA taxes the people making over $168,000 a year will be taxed on their full amount too. Then adjust some of the formulas which are antiquated and make people that hardly make anything have to pay taxes.
If you want to lift the lid on the $168k then should these earners be eventually receiving 7k per month SS checks. The current process is already rigged against high earners and re-allocated to the lazy low income earners.
And then you want those who hardly make anything to pay taxes? 😂🤣
Exactly
@@f430ferrari5 On the paying side yes it's rigged against high earners. But what seems never mentioned is the spending side other than social spending. Who benefits more from the US military? The poor? You think they give a crap if Russia or China took over the US? Who benefits more from Federal highways, airports, rail? These lower prices for every one, but a poor person spending $20k/yr vs a person spending $200k is a huge difference in benefit.
The lazy low income earners? Ya mean pretty much everyone making the lifestyle of the high earners possible? Lazy bums.
@@waterbug1135 why change the subject. So you lose another and trying to nitpick on some other area.
We all benefit more from the US military and it’s usually those who don’t have options to attend college to join the military and obtain benefits. So it seems to help the poor?
So now you don’t care if Russia or China took over the U.S.? 🤡😂
There is more than enough money for what you described. Fed highways, airports, etc.
The US is giving away billions to other countries and even non-citizens. There are police chiefs making more than the US President.
Look. If you don’t like your way of living. Too bad. You don’t deserve it from others. Earn it. Work harder and smarter. Just a complainer.
If no tax on social security is passed, that's going to make it interesting for those of us who are delaying collecting SS until age 70. Many of us might be compelled to start collecting sooner.
Get a job
Most people who actually live off Social Security don't pay federal taxes on it now. Only high income people pay tax on Social Security. This is just another tax break for the rich. You want to help people? Increase Social Security! Add dental and eye to Medicare!
@@alansach8437in the real world most people retiring have another source of income and then they have to pay tax on Social Security!
Collect at 62.
The future is not certain.
If I am even alive at 67, things will have changed greatly... And probably not for the better.
And if they don't tax US citizens living abroad, there will be a mass exodus, myself among them
Thank you for breaking these ideas down
When the tax on Social Security was enacted in 1983 it was only aimed at the top end income levels. $1 in 1983 would be equal to $3.17 in 2024 per government statistics. Adjust the worksheet and leave the tax the same. It would again aim the tax at the top income levels not the majority of middle class people.
They have totally almost destroyed the working class, they're coming for the middle class now.
People actually still believe promises politicians make!
People actually still believe promises Trump make's ! Fixed it for you!
Trump followed through in 2016 and folks like you have been benefitting since.
Time to go to the next level and entirely exclude SS income being subject to income taxes no matter what other sources of income there is. Will benefit retirees.
No income taxes on tips either.
Luckily Trump is not a politician. Trump kept a far larger percentage of his 2016 election promises than anyone ever has. The few he didn't weren't for lack of trying. Grow up.
But Trump isn't a politician. He is a businessman running a business. It just happens to be our country.
these are election promises, no body with any sense expects any politician to keep election promises.
Great points and Im in agreement with your assessments.
I would like to see the SS tax thresholds shifted up and then indexed for future years. Seems like taxing SS, a pay for play program, is being double taxed
If I don't have to pay tax on living abroad, I might be outta here.
If you are an US citizen and live abroad you always have to file your taxes in the usa (and pay subsequently taxes to the USA). Worldincome.
@@emphyrio did you watch the video?
We started planning to leave a year ago. Yes you do have to pay tax on investment income and interest earned, etc. I won’t get enough SS to be taxed on it fortunately. And who knows how long SS will survive if they don’t fix it. Thank god I have a ton of money market accounts and dividend stocks to cover shortfalls.
@@emphyrio it depends on whether the income is coming from the US or from another country, as well as whether it’s “earned” income or retirement income. Retirement income is taxed by the US at the same rate that it would be if you lived in the US, and the state taxes depend on how completely you’ve severed ties with your state.
Bye!
Great information! Thank you
Excellent video. I’ve been waiting for you to address. Thank you
Thanks Geoff
Don’t use TBD as it took me three visits to determine meaning
More on not taxing Social Security
some points to consider. most wait staffs are required to report their tips as the IRS assumes that the got one. it is taken out as part of their withhodings.
I was wondering what your thoughts are on what's going to happen to ACA?
The rock band Kansas had a song called " Dust in the wind".
Hopefully the Unaffordable Health Care Act will be abolished and we can go back to buying a wide range of choices (hospitalization only, etc.) for a reasonable amount of money.
Politicians promise no tax on overtime because they intend to roll back or repeal laws that make overtime pay mandatory. If it is not paid, it won't be taxed anyway, so it looks good to the public but costs nothing.
aca
President Trump is NOT a politician! Fyi..
For clarification -- and in case no one else in the restaurant business has already made a note of this -- at least in my state, actual tips are not taxed... they stopped that years ago. Instead, 8% of your sales are automatically taxed. So, if you are a server and you had 12 tables for an evening and each table's bill was $100 (12x100=1200) then you are automatically taxed 8% ($96) of $1200 for the night. And that is considered your tip. The low number (since usual tips are 18%) is assuming a certain amount of under-tipping or getting no tip at all.
How much is withheld is not the same thing as the tax you owe. It's an estimate with the main goal of keeping people out of trouble by not having the money at year end. True for Federal and pretty sure every state.
What you wrote sounds like some state law to stop under the table tipping to avoid tax. A minimum tax type thing. You're not being taxed 8%, they're saying "we assume you had at least $96 of income on $1200 in sales." Wish I knew what state you were talking about. Looks interesting.
One problem with no tax on tips is that people who make most of their income from tips, will not get credit for or have FICA taken out. This will affect their SSA when they retire.
That’s very true.
That's an excellent point. If the tipped worker is starting their job history it is less of an issue, if it is someone who makes tips as their regular full time 'forever' job then they need to take the money saved and invest some of it. But even so, they won't be seeing the employer match.
Of course, that is the evil plan of the Republicans. I rather pay taxes on my SS, and have a sound system for the future generations.
"No tax on tips" could very easily only refer to income tax and not FICA & Medicare taxes.
No FICA coming out = No SS benefits!
No tax on SS = Medicare shortfall.
Keep The taxes.
Lower the proposed tariffs of 30% on Chinese goods and 10% on other countries' goods!
Great explanation! Please continue!!!
Im on ss, wife too. Dont care for the tax but it helps fund the program. I read that ss life will only be for 6 years then....unless somethings done. The ignorant and easily fooled in this country have cut their own throats.
Social Security is not going anywhere, but changes are definitely going to happen. Unless something is done, it is going to be underfunded in ten years, or so, at which point benefit cuts will be in order. But that is only if Congress doesn't take action to rectify the situation; and with the number of retired voters only getting bigger in the next decade, it is a virtual certainty that Congress will act.
AND ours.
@@calguy3838 The rethuglicans will propose to "fix" it by suggesting a bill with a poison pill in it that the other side can't accept. Then they can posture that it was the Democrats that killed it. But make no mistake, they will kill it if they can. They could not possibly care less about the average retiree
The taxes you pay on SS income don't help the SS program, it's just another tax to add to the general fund. If nothing is changed over the next 5-6 years, between both employer and employee contributions to SS, it will still cover about 75% of current benefits. There are many "reasonable" solutions but legislators don't have the balls to make a controversial decision, all they care about is staying on the government gravy train and self enrichment.
@@Columbus1152 Taxes paid on Social Security benefits ARE paid into the Social Security fund, not the general fund.
A projected sixty-five million people will be collecting Social Security benefits in 2033 and 2034 when the program is expected to start having only enough income to pay 75% of benefits. That's sixty-five million potential voters. So between now and then, you can be sure that a LOT of legislators will undergo the testicular development necessary to make those controversial decisions.
Taxes paid on SocialSecurity goes into the Social Security funds. Eliminating the tax will cause Social Security to disappear sooner.
Exactly. That is the point and has been a goal of Republicans for decades.
I doubt that. It all goes into one pot.
BS
Yes.
@@nancyp.5490OMG!!! Trump is going to end SS!!
No he is not.
He is going to be a great leader and help our country for the better. Relax and get away from your tv news.
Have you made a video covering the upcoming age adjustments to SS? I’m nearly 59 and had planned on collecting SS at 62, but now it looks like I’ll have to wait until I’m almost 63. Is the age adjustments happening?
Great assessment
Substantial tariffs are likely to increase inflation. There are 2 potential reasons:
1) Most goods consumers purchase in Lowes, Home Depot, Walmart, Target, Amazon, etc. are imported.
Tariffs on these goods would be passed from the US importer to the consumer.
Historically tariffs have effectively been a tax on consumers.
2) As tariffs increase the cost of imported goods, domestic producers can profit more by raising their
prices to slightly below those of imports. Most US companies would likely choose increased profits.
With increased inflation, the fed may raise interest rates.
If tariffs are so bad and do as you supposedly claim then why do other countries put tariffs on US goods for their own countries/citizens. 💀
@@f430ferrari5 Those are largely targeted tariffs, which can make sense to specific situations. I'm not aware that Trump proposed targeted tariffs, but who knows.
@@jeffboatright who says they are “targeted” tariffs. You? Why didn’t you bring up before.
So that is how you simply explain how tariffs are bad for the US but yet don’t even mention other countries use tariffs on other countries.
You care to explain why those countries then use targeted tariffs on the U.S. Go ahead and explain. 💀🤡
@@f430ferrari5 What countries are that?
@@f430ferrari5 Understand, they are bad for the citizens of those countries! They have a lower standard of living because of it. Comparative advantage lowers the cost of goods for all of us.
Can you please provide more about the bipartisan majority of the U.S. House voting to pass the Social Security Fairness Act, bipartisan legislation to eliminate the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO)? What does this mean?
Deficits don't matter, VP Dick Cheney.
How about no tax on early 401k withdrawal or 401k in general
I'd be fine with no tax on social security but I'm suspicious it's part of a longer term effort to get rid of or vastly reduce social security. Those lost tax dollars would either need to be replaced from somewhere else or expenditures would have to be reduced. Down the road a few years I could see politicians arguing that social security is too expensive and needs to be trimmed, then trimmed again, and again. And pretty soon there's nothing left. For too many people it's their one major source of retirement income. Pensions are a thing of the past and a lot of folks don't have the income to invest significantly for their retirement.
If you save yourself, instead of the government getting involved you are WAY better off, WAY more money when you are old.
I think that means testing is on the way. Everybody who has saved and prepared for retirement will lose Social Security benefits.
Bingo!
No FICA tax = No SS benefits.
No SS tax negatively affects MEDICARE!
Keep The taxes to keep the programs!
This!! My age group Gen X is coming up on retirement . Our age group was the first that didn’t have access tp pensions only 401ks . Back then, people didn’t understand them yet cuz they were new .
@@catherinesanchez1185 Gen X has had a lifetime to learn about the 401k and IRA. Didn't they learn simple math that 60 years old follows 50, which follows 40, which follows 30? I'm of the Boomer generation, I don't have any pension, only the 401k and Individual Retirement Account. Anyone who chooses to be ignorant on retirement planning, gets no sympathy from me.
Being retired and dealing with RMD’s, IRRMA is what I would like to see addressed.
So many times "soak the rich" turns out to soak those at the lower threshold of starting to build a comfortable nest egg or retirement.
Hi, I think you meant to say that Ronald Reagan was president in 1983 not Clinton..?
I don’t think he ever mentioned Reagan for some reason. He mentioned clinton raised it from 50% to 85%.
@@horanzDefinitely did not mention Reagan as being the president who started with taxing SS in the first place. I listened to video twice to see if there was any useful information to send to friends & family, which there isn’t with all the uncertainty. I will believe it when I see changes. Politicians will lie to get your votes, then if they don’t follow through, nothing we can do.
@@MB-uy5khThanks for confirming. He either forgot to mention Reagan or is a republican that didn’t want to make Reagan look bad 😂
We’ve had so many broken promises from politicians lately.
overtime should not be taxed! been saying this for years. as an employee and a boss, its hard to get people to work. I understand because time spent with family is more important than money and when you are required to work overtime it takes time away from family that you will never get get back. What kind of price do you put on that? that price is to make it well your time away from family and that is to not tax your overtime. The government gets far too much of the American workers hard earned money. Especially for what they get in return.
I don't work OT specifically because of the tax
Another solution is to cut overtime pay so you pay less tax. Happy? Many workers have been made salaried and get zero overtime.
The case you are making is you don't like to pay tax. You'd rather other people pay. Me too. So I want you to pay.
Time spent with family is more important? So quit your job. Seriously. For 22 years I've slow flipped houses. Buy a dump, slowly fix it up and sell it after 2 years. $500k of profit is tax free. And since my family lives in the house we spend 24/7 together. Living off this I pay no tax at all. And with $0 reportable income I get Medicaid which is $0 cost, $0 copay, $0 deductible. And get a free smartphone and plan via Lifeline. I didn't invent these rules, i just have to play by these rules. Anyone is free to do the same.
@@waterbug1135 The case i am making is OVERTIME shouldnt be taxed. And if you havent heard, there is a shortage of housing and not everyone has the ability to flip houses, let alone fix one up.
I agree
The one thing I do remember from the previous Trump presidency is complete daily chaos and his billionaire buddy’s paying less tax.
What world were you in? We were happy! Lower cost of living, freedom, no wars.
@@MsseminoleWhat world were/are you living in?
@@Msseminole Lol what world were you in more like??? Biden pulled us out of Bush’s $300 million dollar a day war with Afghanistan in 2021. Trump did nothing. Trump was Handed the economy from Obama and he ran it into the toilet. Trump spent double what Obama in 4 years. Gas was lower because there was a world lock down from Covid. World cost increases and supply chain issues directly influenced inflation post Covid which is now under control.
The daily “chaos” was manufactured by the mainstream media to fit their agenda and to try and make him look bad.
@@georgejetson4378right wing media
No tax on tips. Define tips? Ceo bonuses?
So, quick question, if Clinton in 1993, threw it out the window and raised tax on S.S.
Who exactly started taxing S.S. In the first place in 1983?. And were any other rules as far as who can claim earned benefits from S.S., even if they had the required quarters worked. Put in place?
The govt is so good at thresholds that don't adjust for inflation.
Taxes on expat income. Would this include consulting income from countries such as Ukraine? How about rental income from foreign countries?
If SS is not taxed wouldn't that expedite the default date?
Where are going to get the lost revenue from? They will cut SS and Medicare.
Jeff Schmidt - do you think the 2018 tax provisions which will reset in 2025 back to 2017 rules will be extended?
A desktop adding machine? I lost mine in 1986.😅
Wonder what the impact of a cashless system would have… so no business or individual can avoid reporting. Would this have a windfall tax potential. Plus nixing the penny.
So when he cancels social security does that mean it wont be coming out of people's paychecks anymore.
Thank you
If my neighbor on one side works at a convenience store and makes $40k in salary, and my neighbor on the other side of me works in a restaurant and makes $30k in salary plus $10k in tips, why should one get a tax break and the other doesn't?
Exactly! So people working a retail job for an hourly wage get to pay taxes but wait staff, valets, etc. get to skate tax free on tips which constitute the majority of their earnings?? Makes no sense.
Tech bros in the hedge fund bus are hoping this goes through as they can claim all their income as tips.
My understanding for those who already pay zero tax on social security, taxes will increase because we’ll have to pay the national sales tax. True?
A lot of ifs on that one. If our tax system is completely replaced by a national sales tax, and if there are no offsets for Social Security (or anything else), etc. I'd say a national sales tax in place of income tax is highly unlikely though.
A national sales tax might benefit us who want to sell off our stuff on the second hand market, making retail even worse.
@@HolySchmidt A national sales tax might be sold to the public as replacing income tax, but initially the income tax would get scaled back, and later it would get scaled back up so that eventually we would have both an income tax and a national sales tax. The government likes using the income tax code as a way to force behaviors. Want people to do less of something, tax it more. Want people to more more of something, give a tax credit for doing it.
Great job!
When I earned tips, I never reported any on my taxes. People living on SS already pay little or no tax. Trump is only cutting taxes for the Wealthy Class and he's cutting Medicare and Social Security to do it. He still hasn't said where he's going to get the money to deport all the immigrants, build the border wall and jail all the Democrats. What new tariffs are going to generate that kind of revenue? How is this not going to cause a huge spike in inflation?
Thank you!
The US House changed the rules for challenging the Speaker. It now takes NINE people instead of ONE.
We are already running an enormous budget deficit and have a national debt of over $30 trillion. Now we want to cut taxes and reduce revenue even more? It doesn't make economic sense to me. I don't like paying taxes any more than anyone else but it takes a certain amount of revenue to run the government. Cutting the budget will not even get us close to closing that gap. For example, we could eliminate the entire defense budget and it would barely cover half of this year's budget deficit. It needs to be a combination of tax increases and budget cuts. Its called compromise.
Considering the last Trumpy administration ran the deficit up more than any other President, we don’t have much hope for it going down this time. Most of that money went into his pocket since he forced the government to pay for stays at his hotels. And, he still managed to lose all that money, as he has done for most of his life. Hence the reason for the grifting ads selling cheap watches, coins, books, etc.
The govt is bloated. Cuts must be made!!😮
Makes perfect sense. I'm 67. Cut my tax and borrow money to pay for it. I get to spend that money on booze and hookers. Then in 20, 30 years after I'm gone your grandkids get the bill. How is that not wonderful?
Cutting the budget? Are you high?
GOP: If the president is a Republican, deficits don't matter. If a Dem, they are awful
Zero concern that Congress might have a spending problem? Take away the money.
Thanks. You don't mention the cuts to Social Security and medicare that they plan on making never mind paying taxes.
No cuts to individuals receiving social security and medicare have ever been mentioned by Trump. So who are you talking about when you say "they"?
I’ve been self employed since 1994 . Yup long time pay full boat on my taxes. I’m selling my business this December and retirement is weeks away. I’m looking forward to hopefully not paying taxes on my social security. Because I already paid them.
I think a lot of contractors and landscapers already see their pay as a tip. If you know what I mean.
I know what it means . . . we're screwed.
Just like the first time when Trump was in, life was terrible! lol
@@jamesrecknor6752oh yeah and the Biden administration are golden aren't they
Thank you for not making this political either way. But the proposed tariffs will make all this pretty academic. Those tariffs if they pass [which is unlikely, IMHO]] will be a huge tax increase for all of us.
Not true!
We will bring jobs here !
@@Msseminoleusing raw materials from where?
@@Msseminole Tariffs ARE taxes placed on imported goods. Whether or not they" bring jobs back" wasn't the issue nor did I address the issue of jobs.. Tariffs are an insidious tax because they affect the poor the most, who can afford them the least. The current taxes were quite expensive: The current tariffs "imposed nearly $80 billion worth of new taxes on Americans by levying tariffs on thousands of products valued at approximately $380 billion in 2018 and 2019, amounting to one of the largest tax increases in decades." The ones that are proposed are even higher.
Trump can unilaterally impose tariffs
@@Msseminolefew if any. It will cause worldwide recession. Smoot Hawley teaches us this
What's your take on the ACA getting repealed?
Bad move
I will believe it when any of this actually happens. Speculation is time wasting in my opinion.
My concern is bonuses will be considered tips and corporations will be taxed close to zero percent. I'm brushing up on my French. I understand you only have to pay US taxes which is zero because it's all dividends/cap gains.
I pay the top percent , 85% of tax on my and wife's SS benefit. That would be big for me not paying that, but I really do not think it is likely.
Eliminating the tax on social security will be a little useless if they don't fix the SS trust. If Trump implements all of his plans, the trust will run out of money in 2033, and we will get a 20 - 25% cut in benefits.
Eliminating taxes on someone just because of their chosen job/profession is a BIG NO. It would encourage an elitist attitude that the country doesn't need.
Easier solution is to eliminate tipping. It makes no sense. Many places "tip" is added to the bill. Service really doesn't matter, good or bad. It's just a way to advertise a lower price than you actually have to pay.
Small taxes can affect investment decisions such as whether to choose tax-free municipal bonds over taxable bonds or do a Roth IRA conversion. I’ve been sitting on over $745K equity from a home sale and I want to invest on the stock market, how do I achieve this without being taxed twice?
There’s more benefit to holding fixed-income assets in tax-deferred retirement accounts as opposed to taxable accounts. If you're not who understands strategies to invest in the market, seek a Financial advisor to guide you.
Please talk about windfall as im a soon to be pensioner
Sounds a bit like making excuses for not following through on campaign "promises"
Thank you very much!
No what we need to know is WHEN. April 15 2024? 2025? 2026? What tax year?
Maybe I missed this in your video, but what's the likelihood of Trump not taxing Social Security benefits?
The president can't make that change, Congress has to change the law.
@@SpynCycle57He’ll threaten them to do whatever he wants
I’m moving to New Zealand 🇳🇿
Cool. Just need $739k cash and $35k/yr income. Great Brown Trout fishing.
@ I’m fortunate to have the funds and principles. Enjoy your dystopian nation.
Geoffrey, if the Social Security Benefits Worksheet was updated to include inflation since 1983, only a small number of us would be paying any income tax on social security. Adjusting the worksheet to include 40 years of compounded inflation would be a fair thing to do.
Only 40% of people getting SS pay any income tax today. Can't say I see the huge need to reduce tax by a few hundred dollars on people with millions in the bank. I'm with Warren Buffett on taxes for the wealthy. I did really well, and as much as I would like to take credit for that I realize I couldn't have without all the Federal gov provided me which was mainly funded by less wealthy people. I served in the Army 3 years to protect the wealthy. Poor people could care less if Russia or China took over the US. They would lose nothing because they have nothing. I don't think it's fair to push the cost of all the things wealthy people benefit from much more than they do. I was always happy to pay what I owed.
@@waterbug1135 " Only 40% of people getting SS pay any income tax today". Well, 40% of retirees is still a LOT of people. And many of those "retired" people are still working jobs, as the SS payouts don't even begin to stay even with inflation. So, those working retirees have their benefits effectively reduced when they are taxed on their full income.
@@waterbug1135I believe you’re thinking retired folks are mostly multimillionaires, you’re way off there, only a low single digit percentage get to a million in retirement savings. Also, I believe the American poor wouldn’t want a communist state to take control. How many fat Chinese or North Koreans do you ever see, even the poor in this system are living a much better life than in most of the rest of the world.
@@NormanSmith-m8f Exactly…
Blame trump voters for the SS cuts. Hold them accountable. Confront them.
@JCody3407 Lol. What Cuts? He is the one who said He was going to remove our taxes on S.S. Keep up!
@@guzzi95 so just like it used to be?
Another lie pushed by the democrats during the campaigns this year!
@@guzzi95 Trump always keeps his word right?????
Trump kept his campaign promises and more last time
No overtime PAY!
Who would work for free?
He's already blackmailing the "sanctuary cities."
If the tax on Social Security benefits is not repealed, they should at least change it to somehow use incremental brackets. As it works now, as soon as you earn that one extra dollar that puts you over the threshold, half of your SS benefits become taxable, so that you will likely owe thousands in additional tax.
I very much doubt these tax cuts will happen.
Keep voting democrat and I guarantee they will never happen.
@@oliphauntsneverlie6227 You don't actually think the Republican Party has any interest in giving tax cuts to anyone except the 1%? LOL! I have a really cool bridge in Brooklyn to sell to you!
Overtime is used by many police departments
Because it bumps up their retirement considerably
@@arthurbrumagem3844 It is due mostly to the shortage of police and those that remain have to pull the weight for the gaps in the ranks.
@ and as of a few hrs ago cops were working tons of overtime due to Covid absences. I’m aware of all those. Many cop pensions are based on “ high five “ years and I those yrs cops endeavor to work as much overtime to insure hefty pensions. I don’t blame them but it does cost the taxpayers
Most people are unaware that an arrest near the end of an officers shift leads to overtime for them automatically as they complete the booking process ….. happens more than you think. Always evaluate the police dept. in a town you’re looking to buy a home in. If you’re buying property where law enforcement is sheriffs dept. or state police, good luck ….. no oversight there
Most tips are reported because they are captured by the employer via electronic payments. People rarely pay restaurant bills with cash or even tip with cash in restaurants anymore. And most employers use a payroll service so if the employee is to be paid their tips, they have to go through the payroll system which flows through to the employee W-2 at year end. Earned income is earned income. There is no justification for excluding tips from taxation.
As an ex-pat, I think having to file and pay taxes on my foreign-earned income is frankly barbaric. The only other country in the world that does it is Eritrea, a dictatorship. I would gladly give up my "right to vote" to not have to deal with this burden anymore. The self-employment tax thing is the worst. 15% of my local income (which is very, very low) goes out the door, but I still have to pay all the local taxes on that. This keeps me from occasional consulting, as it would leave me with very little at the end.
Most Trump supporters have not read his book "The America We Deserve", where in a special chapter he calls the Social Security system "a Ponzi scheme" and explains why it should be eliminated, thusly kicking all retirees who need the pension checks off into the streets.
It is a ponzi scheme (that is just about to go broke and all the young people paying today will be left with nothing) and it should be eliminated and replaced with investing options. He never said anything about leaving anyone high and dry. Try not lying for a change. Leave the dark side.
Well, it is a Ponzi scheme and was never self-funded fully, and it has been that way since FDR created it
It IS a Pomzi Scheme! Invest your own money! Your employer has to pay into your SS and so do you. Take that money and invest it yourself. If you did, after 38 years, you would have 3X more money for retirement. The government is not your friend.
Conservatives have disliked SS from day one. They'd love to figure out a way to end it, but it voters wouldn't allow it.
@@tomt373 SS actually IS a Ponzi scheme. A legal one but a Ponzi scheme nonetheless.
Thank you.
Note both the SS tax and tips taxes came in under Reagan.
Can companies pay 1 hour a day then tip the employee 7 times for hanging around 7 more hours? It’s just a tip.
Would you explain how Trumps presidency may affect retirement income. I am starting my 4 th year of being retired and am concerned.
seems to me congress being willing to vote for something in exchange and the voters are usually the ones hurt financially.
No better time to start planning than NOW.
Most of trumps proposals will just hasten insolvency.
Yes, just like the first time he was in. It was as bad as 1932!
We are doomed.
Y’all think overtime will pass ?
Small taxes can affect investment decisions such as whether to choose tax-free municipal bonds over taxable bonds or do a Roth IRA conversion. I’ve been sitting on over $745K equity from a home sale and I want to invest on the stock market, how do I achieve this without being taxed twice?
There’s more benefit to holding fixed-income assets in tax-deferred retirement accounts as opposed to taxable accounts. If you're not who understands strategies to invest in the market, seek a Financial advisor to guide you.
Indeed, I did make use of a financial counselor. As I get closer to retirement, their advice has been really helpful. I thought compound interest on index funds wouldn't be sufficient because I started late. It's amusing how I've done better than colleagues who have more years of investment experience. I've profited more than $886k tax free.
My CFA ’ Melissa Terri Swayne’ , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
The idea of tax on SS needs to be either dropped completely or the income amounts should be adjusted up to current which again would have only a small amount of people to actually pay a tax on SS