Blog: Double Taxation

Statement

Blog: Double Taxation

By: Rep. Burton

Prior to 1993, seniors paid taxes on half their Social Security benefits if their combined income exceeded $25,000 for individuals or $32,000 for couples. However, in 1993, then President Bill Clinton decided he could bring more money into the federal coffers by increasing the portion of Social Security benefits subject to taxation from 50 about 85 meaning individuals with incomes above $34,000 and couples with incomes above $44,000 became subject to the higher rate of taxation.

Clinton's 1993 tax hike, which I and every other Republican in Congress at the time opposed, was the largest tax increase in American history, and its Social Security provision hiked taxes for almost 25 of recipients. I believe that taxing these benefits was an immoral example of double taxation and it created a strong disincentive for seniors to save or continue working.

That is why I am and have been a strong supporter and co-sponsor of H.R. 192 and similar bills for many years. I know that many of my colleagues are concerned that repealing the Clinton tax on Social Security will drive up the federal deficit. However, in my opinion, too many people in Washington have forgotten that the taxes Americans pay belong to the taxpayers, not the government.

Source