Those good old days disappeared a few years ago when Congress rewrote the tax code. Social Security benefits now can be taxed if the recipient has $25,000 or more in earned income--including private retirement benefits, but not interest income.
Social Security for years has penalized recipients who earn more than--say--$9,600 annually before age 70, when recipients can have unlimited earned incomes.
After all, Social Security was designed to prevent abject poverty--not as a windfall. No argument there.
But the Congressional robbery of senior citizens receiving both Social Security and employer-paid pensions is unforgiveable. Remember that income taxes were levied initially on earnings before Social Security contributions were deducted.
Let's say a retiree receives $12,000 annually in Social Security benefits, plus $18,000 annually from a retirement plan. That means the retiree can only earn $7,000--not $9,600--in other income before paying income taxes again on Social Security benefits.
That $7,000 restricts the retiree to earning minimum wage in a part-time job. Hello, McDonald's.(22 AUGUST 1999)
