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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsDebunking help needed on possible ACA Lie
Got into a discussion about the ACA with an obvious Libertarian. He claims his brother's SS benefits are being taxed 15% to pay for the ACA. That 15% amounts to $109 according to Libertarian. I cannot find any information on SS being taxed except for High earners, and NOTHING on any 15% tax. The Additional Medicare Tax is .9%, and only kicks in at higher incomes.around 144,000 and up. if I remember correctly.
Anybody have any idea what this RWNJ is talking about?
upaloopa
(11,417 posts)Still waiting.......
Thinkingabout
(30,058 posts)Medicare Part B has a premium and has had a premium since the beginning. This is not new and is not related to ACA. Yes, if a person has other earnings in a year the SS received may be added to the amount and taxes due.
concreteblue
(626 posts)I will look into it.
DURHAM D
(32,596 posts)It is an insurance payment to receive Medicare coverage. The brother (if he is profoundly stupid) can opt-out of the coverage and save $105 a month.
It is not a new item as it has always been the case that this was taken from SS check. If you enroll in Medicare at 65 and before you start receiving SS you pay the government quarterly in advance by check.
former9thward
(31,805 posts)There is an additional 0.9% surtaxor additional Medicare tax (it is levied on top of the Medicare tax you already pay)is effective Jan. 1, 2013 and applies to wages and self-employment income above $250,000 per couple or $200,000 for a single.
So if youre a high-earner single you pay 1.45% Medicare tax on the first $200,000 of compensation plus 2.35% (1.45% plus the additional 0.9%) on compensation in excess of $200,000. (This is on top of the Social Security tax rate of 12.4%6.2% paid by the employee and 6.2% by the employercalculated on the wage base up to $113,700 in 2013.)
madmom
(9,681 posts)husbands SS check is the same as it's always been.
Lex
(34,108 posts)He has any source at all (other than someone's blathering about it)?
Proud Liberal Dem
(24,355 posts)assume that everything that RWNJs/Republicans say about it is a lie- unless they prove otherwise.
DebJ
(7,699 posts)Q3. Which political party started taxing Social Security annuities?
A3. The taxation of Social Security began in 1984 following passage of a set of Amendments in 1983, which were signed into law by President Reagan in April 1983. These amendments passed the Congress in 1983 on an overwhelmingly bi-partisan vote.
The basic rule put in place was that up to 50% of Social Security benefits could be added to taxable income, if the taxpayer's total income exceeded certain thresholds.
The taxation of benefits was a proposal which came from the Greenspan Commission appointed by President Reagan and chaired by Alan Greenspan (who went on to later become the Chairman of the Federal Reserve).
The full text of the Greenspan Commission report is available on our website.
President's Reagan's signing statement for the 1983 Amendments can also be found on our website.
A detailed explanation of the provisions of the 1983 law is also available on the website.
Q4. Which political party increased the taxes on Social Security annuities?
A4. In 1993, legislation was enacted which had the effect of increasing the tax put in place under the 1983 law. It raised from 50% to 85% the portion of Social Security benefits subject to taxation; but the increased percentage only applied to "higher income" beneficiaries. Beneficiaries of modest incomes might still be subject to the 50% rate, or to no taxation at all, depending on their overall taxable income.
This change in the tax rate was one provision in a massive Omnibus Budget Reconciliation Act (OBRA) passed that year. The OBRA 1993 legislation was deadlocked in the Senate on a tie vote of 50-50 and Vice President Al Gore cast the deciding vote in favor of passage. President Clinton signed the bill into law on August 10, 1993.
(You can find a brief historical summary of the development of taxation of Social Security benefits on the Social Security website.)
Response to concreteblue (Original post)
Thinkingabout This message was self-deleted by its author.