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View Diary: Al Franken and Elizabeth Warren join fight against chained CPI (67 comments)

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  •  change taxation too? (0+ / 0-)

    It occurs to me that it could be useful to pair the "chained CPI" discussion with another one: reducing the tax bite on Social Security benefits. The current amount of income that triggers taxation of part of your benefits ($25,000 for single filers, $35,000 married filing jointly) has been in place for decades (I think) and is not indexed for inflation. That means it hits more and more people each year, just as the Alternative Minimum Tax did. So even if Social Security payments go up, the net in people's pockets isn't that whole amount because they get hit with taxes on it.

    I doubt there is the political muscle to increase the trigger amounts immediately -- but there might be enough to index them to inflation going forward.

     

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