If Congress wanted to cut taxes that would help the average American, they would raise the limit on Social Security, not give tax breaks to those who have earned investment capital gains.
The taxable limit on Social Security is $30,000. If you earn — including your Social Security benefit — $30,000 per year, the government taxes your Social Security. So, if you’ve worked hard all your life and saved for your retirement and now you’re starting to take money out of your tax free investment accounts, you’re paying taxes on Social Security. How can that be right? Has anyone in Washington, D.C. ever tried to live off of $30,000 a year? With rising gas prices and medicine, etc. $30,000 doesn’t go far.
Further, what about tax breaks for single Americans? A single American earning $40,000 per year, really brings home — after taxes and insurance — around $22,000 per year. Does that seem fair?
I’m running late for work, so I don’t have time to put in more figures, but trust me — Washington is definitely not looking out for the right people.