Need help! Did Clinton start taxing Social Security benefits?

[CTyankee]

Some freeper wrote in today's New Haven Register, "When Bill Clinton started taxing Social Security benefits, I pushed my retirement back from 65 to 70." Is this statement true?

I thought that SS income started being taxed before the Clinton Administration. Since I couldn't put a date on it, I googled it but the information I got didn't clear up the question.

If this is true, what were the circumstances?

Any help you can offer would be appreciated. I'm considering writing a response.

[Starbucks Anarchist]

1. Multiple explanations:

http://www.snopes.com/politics/taxes/sschanges.asp

[OKNancy]

2. Here you go:

There's another large group of taxpayers getting slammed by inflation: seniors. The tax on Social Security income has not been adjusted for inflation since it was enacted 23 years ago.


Social Security benefits were tax free for nearly 50 years. The law was changed in 1983 because the Social Security system was underfunded. The idea was that revenue from taxing benefits of "wealthy" recipients would go back into the trust fund and make it solvent.


http://www.latimes.com/business/investing/la-fi-perfin22jan22,1,3542679.column?coll=la-utilities-business-money

[ET Awful]

3. Actually, the taxing of such benefits began in 1983

http://www.snopes.com/politics/taxes/sschanges.asp

It predated Clinton by a good long while.

"Responsibility for this change cannot fairly be assigned to either political party. The idea originated with a proposal issued by the Greenspan Commission, which had been appointed by President Ronald Reagan, a Republican. The amendments were passed by a House of Representatives in which the Democrats held a clear majority of the seats (296-166), but the proposed amendments received "Yea" votes from members of both parties, and they were signed into law by President Reagan."

[Rabrrrrrr]

4. His stament is true; but it is based on a lie.

That is, it's likely true that he pushed his retirement from 65 to 70, and that he did it under Clinton. And it's like true that he believes Clinton started taxing social security benefits, and that he (the freeper fuck) changed his retirement because of it.

He is, however, wrong about Clinton starting to tax socail security benefits

[Wickerman]

5. Benefits have been taxed for some time

I can recall my Grandmother complaining in the 70's (edit, reading other posts must have been n the 80's :blush:) about working only to have her SS eaten up - she had to adjust her hours so that it paid to work.

In effect, its your additional income that is taxed. Let the IRS page tell you:

6.3 Social Security Income: Regular & Disability Benefits

I retired last year, and started receiving social security payments. Do I have to pay taxes on my social security benefits?

To determine whether any of your benefits are taxable, compare the base amount for your filing status with the total of one half of your social security payments plus all your income from other sources, including tax exempt interest. If you are married and file a joint return, you must combine your incomes and your social security and equivalent tier 1 railroad retirement benefits when figuring the taxable portion of the benefits.

[wishlist]

6. It was a bipartisan decision during Reagan Administration (Greenspan)

Alan Greenspan was a leading proponent of the Social Security cutting measures that were supported by both parties in Congress and signed into law by Reagan. These measures included the gradual phasing in of higher age to draw full retirement benefits and taxation of Social Security for people with substantial other income.

[Rufus T. Firefly]

7. Reagan signed it into law.

They can blame Dems, but Saint Ronnie could have stopped it.

"Trickle down" indeed.

[BlueEyedSon]

8. Did eveything bad start with Reagan???

:)

[Javamancer]

9. i know you'll be shocked

but it was Reagan who signed the first tax on social security. Quoting from the Social Security Administration's official site:

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 is presently serving as Chairman of the Federal Reserve.

However, Clinton did sign an increase on the tax for the FY 1994 budget bill. Quoting from the same site:

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.