Social Security recipients aged 65-70 probably believe they won't incur benefit penalties because Congress approved "unlimited" earned incomes for their age group.

Until now, only 70+-aged recipients could earn more than $17,000 allegedly without losing benefits.

Just wait until April 15, 2001, when 65+-aged recipients who chose to work learn that their Social Security benefits are taxed if they received more than $25,000 in earned income.

That "earned" income, by the way, includes proceeds from private retirement plans.

In other words, if work income and/or retirement proceeds total more than $25,000 in 2000, Uncle Sam will tax some Social Security benefits. Even though federal income and Social Security taxes were levied earlier on gross annual incomes.

Talk about inequity. Social Security recipients can have unlimited earnings from interest without losing benefits or having their benefits taxed.

Congress should take the next logical step and eliminate the double taxation of Social Security benefits. (16 APRIL 2000).