Changes

Included in this base amount are non taxable nontaxable interest, and half of your Social Security benefit. So a senior couple with $25,000, in combined, annual Social Security income would have $12,500 of that added into their total income level, meaning that if they earned only $19,500 in other income, their government retirement benefits would become taxable. Though the federal government has taken great pains to eliminate so-called marriage penalties in the tax code for most filers, the marriage penalty still slams seniors. That's because the thresholds for taxing Social Security income for married couples are only slightly higher than the thresholds for singles, and every dollar you make above the threshold isn't taxed as $1; it's taxed as $1.50 or $1.85. Have you noticed the "base amount" remained the same since it's inseption inception in 1984! THE EFFECTS OF INFLATION: In 1984 the Base amount of $25000 is equal to $46,190.69 in 2006 dollars, $32,000 is equal to $59,124.09 in 2006 dollars, and 44,000 is equal to $81,295.62 as converted by Federal economic data. Conversely $32000 in 2006 dollars, would have been the same as $16000 in 1984. Go to Federal Reserve Bank http://minneapolisfed.org/research/data/us/calc/. I am sure you will be as surprised as I was. IRS STATISTICS ON INCOME: http://www.irs.gov/pub/irs-soi/histab1.xls Reveals that from 1990 to 2005 the amount of individual returns reporting Social Security Income Taxes went from 5,082,575 to 12,660,754 and Revenues went from $19,686,539* to $124,829,069*. Latest update 2009 2013 figures, returns are 1518,436507,014 324 and Revenues are $176243,128327,458448*. (Thats That's BILLIONS). Now tell me who is the largest recipient of Social Security? Would it be the elected officials in Washington? Do not believe them when they say it goes back to Social Security Fund, that fund does not exist after they rolled it into the General Fund to make it look as if the deficit had been reduced. Having sent many letters to, Republicans members of Congress and the president, on this subject I conclude that there is no interest in changing the way the tax is calculated or to connect it to the "cost of living index". http://socialsecurityincometax.home.insightbb.com/