2:00 PM EST, January 13, 2013
Congress and President Obama have set the inheritance tax trigger at $5 million and indexed it to inflation. They also indexed the alternate minimum tax to inflation.
This legislation limits some of the penalty on those who have achieved wealth that they subsequently pass on to their heirs as well on those who are still in the in process of accumulating their wealth.
Now that those inequities have been addressed. It's time to eliminate the inequity our government has fostered upon the majority of retired Social Security recipients.
In 1983, retired individuals with income over $25,000 or couples with income over $32,000 were considered well off. Consequently Congress amended the Social Security law to tax up to 80 percent of their Social Security benefits.
But 30 years later, in 2013, our government is still imposing the same $25,000 and $32,000 triggers and still taxing up to 80 percent of Social Security benefits of retirees in those income brackets. Yet today's retirees in those income brackets are far from being well off.
In fact, they are struggling to pay their inflated health care premiums and inflated food and gas prices.
Any adjustments or amendments Congress makes to the current Social Security law should include fixing this inequity. At best the entire concept should be scrapped, or at least indexed to inflation.
Norman Katz, Ocean Pines
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