Social Security Benefits Eyed As Tax Target; Clinton Plan Might Hurt Elderly Who Still Work

The Washington Post | May 9, 1993| | Copyright

The Clinton administration's proposal to increase the share of Social Security benefits that are subject to income tax has good news and bad news.

The good news is that the plan would not change the income thresholds in current law - you're taxed on a portion of your Social Security benefits if your total income exceeds $25,000 for a single person and $32,000 for a couple. Thus, people who don't pay tax on their benefits now would not pay under the Clinton plan unless their income goes up.

The bad news is that because of the interaction of the Clinton plan, the federal income tax, the Social ...

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