Act now on taxes, social security
Why should our tax-deferred IRA distribution and Social Security income be taxed?
We are retired and have a small IRA and must take a small distribution every year. The last few years, because of the cost-of-living increases in our retirement and Social Security income, our Social Security income has been taxed. We paid our taxes for years while we were employed, and now in retirement, because we are over the minimum amount set by the government, we are taxed. It seems that we are paying tax on tax, (the amount of the government minimum, which was the same amount of Social Security that was taxable). Sounds like we are paying double taxes on the same dollar.
Congressmen and Senators, now is an opportunity to make a change - Don't wait for next year!
How come the CEOs of large corporations took millions before their companies folded, and that is OK, but the little guys have to pay taxes on IRA's and Social Security income! This is not fair.
A number of years ago, Congress, in order to keep the Social Security system afloat (but did it?), created what was called the "Notch Group," and their Social Security benefits were reduced. This discrimination of one age group was supposed to be corrected, but it has never happened. Now the "Notch Group" is well into their 80s and 90s; who is going to be left to complain, for nothing has been done to correct this? I am one of this group.
All that glitters is not gold! As a couple, we thought we were entitled to an Economic Stimulus Payment of $1,200 but found out, we are limited to the amount we paid in taxes in 2007. That is less than $1,200.
Question: Do the people who made only $3,000 still receive an ESP check for $600 that have not paid any taxes? The public has not been correctly informed of the fine print and the bottom line about the program and how it works.
In retirement we have endeavored to remain independent. We started our IRA years go when the interest rates were high. Now the interest amount earned will not cover the required annual distribution. We must now dip into the principal to meet the required amount.
I am a Veteran of WWII and served my country at the age of 18 during the "Battle of the Bulge." WWII Vets were promised health care for life, but this has not happened. Let us treat our present Vets better, and not make promises the government cannot keep.
It has never been our policy to "complain," because this is the greatest and freest country in the world, and we are grateful to be Americans. However, we would like it to stay that way for our grandchildren. So listen up and do something about these problems!
Earl and Barbara Beese
Antioch