Comment: What I wanted to point out to, today, is the built-in tax inequity levied on seniors collecting Social Security. Briefly it's this. Seniors, like myself, are taxed at a 27.8% marginal rate, not 15% as one might think. Each additional dollar of IRA withdrawal income triggers an additional 85 cents increase in reportable Social Security income. Even though $1 is earned, the taxable income automatically inflates to $1.85. 15% of $1.85 equates to $0.278. Ironically, we were under the impression that deferred income during our working days would be taxed at a lower rate. I have never been in a 28% marginal tax bracket! In fact those in the $100,000 income bracket are currently in a lower marginal rate of 25%!!! Appreciate any comments you might have on this and how I might bring it to the attention of anyone who can correct this inequity. Incidently, my suggestion would be to forgive the first $10,000 of IRA withdrawal and not count it as additional reportable Social Security income. Within an AGI bracket of $32,000-$42,000........marginal rate is 15 % Within an AGI bracket of $42,000-$67,000........marginal rate is 27.8 % Within an AGI bracket of $67,000-$75,000........marginal rate is 15 % Within an AGI bracket of $75,000-$135,000......marginal rate is 25 % Within an AGI bracket of $135,000-$196,000....marginal rate is 28 % So seniors in the $42,000-$67,000 AGI bracket pay the same marginal rate as those in the $135,000-$196,000 AGI bracket. ...This is outrageously unfair!!!! ( All of the above assumes a standard deduction for 2 seniors ((receiving Soc. Sec.)) of $11,600 and a personal exemption of $6,200.) Thank you for your time. Vincent DeVita (818) 360-5868 |