According to a new study, billions in federal revenue could be added in addition to thousands of jobs if the exclusion of Social Security benefits from taxable income is scrapped.
The Tax Foundation, a free-market oriented group, claimed in findings that eliminating that tax break as part of a tax reform effort, and taxing all Social Security benefits, may add $19.5 billion to government coffers and create close to 12,000 full-time jobs.
The economy could grow by $30 billion and add close to 180,000 jobs if the funds acquired from eliminating that tax expenditure were funneled into lower overall tax rates by 1.9 percent.
“Social Security benefits are currently taxed in a very odd manner,” said Tax Foundation Senior Fellow Stephen J. Entin. “The economy would be stronger without the tax, or if it were levied in a less destructive way.”
With that said, scholars for the group added that eliminating that break would result in higher taxes on the elderly in addition to a new tax on retirement savings that should be exempted from taxation.
Source: The Hill
Christopher J. Berry is an elder law attorney Dedicated to helping seniors, veterans and their families navigate the long-term care maze. To learn more visit http://www.theeldercarefirm.com/ or call 248.481.4000