Social Security Benefits A Welfare Program Essay
The start of Social Security began when President Franklin D. Roosevelt signed the Social Security Act on August 14, 1935. In 2014, the Congressional Budget Office, CBO, estimated that approximately 60 million people received Social Security Benefits. The income tax on the Social Security benefits was $51 billion in that year (Shakin and Seibert, 2015). Almost one third of U.S. retirees depend exclusively upon Social Security benefits for their retirement income (Hopkins, 2014). It is the matter of fact that despite its significance and positive history of providing retirement income to the elderly, Social Security has its own issues and cannot continue down the same path for much longer. However, the proposed tax policy (Team A’s), making social security benefits as a welfare program for older Americans but not for those has sufficient income is not an appropriate alternative to fund social security.
Social Security Benefits: Tax Computation
Social Security benefits received are taxed base on the individual income. There are three tiers. The first tier is for individuals with income of $25,000 or below for unmarried and $32,000 for married. This tier pays no taxes on their benefits. In 2014, around half of the Social Security recipients fell in this tier. The second tier is for unmarried filers with incomes under $34,000 and married filers with incomes under $44,000. The amount of taxes they pay will range from 0 to 50 percent depending on their income. As…