Do We Really Want To Remove Taxes On Social Security

[AnnaLee]

5. Back of envelope estimate

Last edited Sun Mar 16, 2025, 10:17 AM - Edit history (1)

A single taxpayer making $175,000 a year drawing the maximum (age 70 claim) they could from SS would pay about $30K in taxes with the 85% SS taxation entirely in the 24% marginal rate band. If taxation of SS stopped, they would pay about $10,000 less in taxes. That $10,000 is almost half of the average income of a retiree in a poor state.

Since this $10,000 would all go to SS, stopping these taxes will help make SSA unsustainable and support putting retirement savings in the hands of the super rich investment brokers.