Posted: Apr 29, 2005 By: RON LIPSIUS

Subject: TAX TREATMENT OF S.S. PMTS

Comment: Taxes paid by individuals on social security income should by allocated back to the S.S. Trust Fund. This would help fund the shortages the Fund expects to have in the future.

Prior to twenty years ago, when the last major tax reform took place, S.S. income was not taxed. This new reform taxed S.S. income above $32,000 and went into the General Fund. This $32,000 marker has not changed since it's inception.
I think it should be indexed in the future, but I personally would not find ita hardship if it did not change. However, I would feel much better if I knew it was being credited to the S.S. Trust Fund. After all the Federal Government is giving it to me to put in one pocket; then asking for part of it back from another pocket. This hurts of course the General Fund, but I think it makes sense.

Thanks for this oportunity to give this view.