Social Security taxation needs reform, not abandonment

Recent discussions, as well as remarks made by President Donald Trump on the campaign trail, have included the proposal to eliminate the federal income taxation of Social Security benefits. That would be costly to the federal budget and the Social Security and Medicare Trust Funds, accelerating their expected exhaustion dates, and it would favor higher-income retirees and workers.

Instead, lawmakers should discuss taxing Social Security benefits the same as contributory pension plan benefits. That would slightly decrease the percentage of Social Security benefits that are taxable, particularly for those who retire at earlier ages and have higher incomes.

The 1983 legislation that saved Social Security from imminent bankruptcy first introduced the federal taxation of Social Security benefits. Tax proceeds from this first tier go to the Social Security Trust Fund. Budget legislation

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