Dear Editor,
The 8.7% COLA Social Security retirees received for 2024 has been more than a wash due to the 20% Cost of Living inflation rate for 2024. A goodly share of retirees who filed taxes in 2023 for 2022 had to write a check to cover taxes due as a result of their S.S. COLA of 5.9%.
Inflation in 2023 put the 2024 COLA at 8.7% for Social Security income paid this year. The difference between these two years is that outlandish inflation started to rise in the mid part of 2022 and is now over 20% higher in this same period in 2024, making purchasing power less in 2024 than 2022.
Adding to the decrease is the burden of reducing the gross amount of a Social Security check with a significant second year increase of a Medicare charge. We are now coming to the end of 2024 and in the third year of inflation.
For those who live on a fixed income, the continuing inflation comes at an age where going back to work may not even be an option, and an insult to those who may be able to yet are nonetheless also cutting back due to fixed living expenses, which continue to outpace income.
Even in the first quarter of 2024 the inflation rate had risen to a 3.2% plateau, essentially wiping out the monthly 2024 check by more than 3.2% of the 8.7% due to Medicare costs. Retirees paid into FICA every payday, and now too many are having to pay these taxes again.
Essentially paying a third time, as many have a separate retirement income through their employer, where deferred taxes of a 401K/IRA are due.
Social Security should not be considered as Deferred Taxable Income. They were taxed when working. The Federal Government is using seniors to fund the government by taxing them twice. This problem could be resolved in the simplicity of ONE tax code reform; specifically the tax code that incorporates a line item adjustment specifically for Social Security income. Throw out the Social Security line on the IRS form or report it as an Exempt line item. Ideally there should be another one time line item when filing in 2025 where one can deduct the amount used as SS Income Adjustment, and where taxes were assessed a second time as taxable income in 2022 and 2023.
There should be no Social Security reporting for 2024 in April 2025. President Trump introduced this as a campaign promise months ago, even before he said he would not tax “Tips”. President Trump has already proposed this, while Harris is playing catch up and is only giving lip service on “Tip Income”.
A Government should not be able to tax twice, especially when they cannot balance a budget that exceeds the ability to tax responsibly in light of the deficit being over $17 trillion, and when only interest, not principal, is being paid on.
Sincerely,
Florence Alpert
Candor, N.Y.
There should be an adjustment for the value of a dollarsome of us never made over minimum wage all our working life..and that started when we were in High School.
Most of us did not get enough to get a pension that works with today’s demands for the economy is way off balance.