By Dale Coberly
No. It’s not. Here is why.
The argument for ending the tax on Social Security benefits seems to be that “it is a tax on a tax”, double taxing, and not fair.
Even the good guys believe this.
But they are wrong.
Consider, You pay income taxes on your ordinary income. Then you may take your after tax income and put some of it in a savings account which earns interest. Then you pay income tax on the interest you earn. Is this double taxation?
This is exactly how Social Security works. You pay income tax on your ordinary income, then you put some of your after-tax money into Social Security which is a very safe savings account.* This account earns interest, which you collect when you start receiving benefits, Social
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