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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: skinowski who wrote (438091)	7/31/2011 12:03:42 AM
From: Sr K	1 Recommendation Read Replies (1) \| Respond to of 793917

>> This is a relatively recent idiotic development. It used to be that you couldn't collect full SS for as long as you worked, at least not until the age of 72. Now, at the age of 66 you can make hundreds of thousands, and also receive full SS benefits. This needs to be reversed, and the political fallout would be minimal. << That's not true. After the 1983 changes, 65 was the Regular Retirement Age (RRA) and 70 was the age beyond which no Earned Income would cause part of SS to be taxed. After a certain amount of Earned Income, $1 of Social Security for every $2 or $3 earned was taxed. Taxing SS at a marginal tax rate is not the same as taxing it at 100% as you implied, or as not paying it at all until age 72 as you implied. Those changes always encouraged working, and increased potential SS payments for additional contributions past the RRA. So there was and is a 5-year trade-off for working past the RRA, even when part of SS is taxable.