Having completed posting on the Third Way benefit-change proposals, I will now begin to evaluate the revenue-increase proposals.
First on the list is the idea to impose benefit taxes on higher-income seniors. Third Way proposes to reduce benefits on this group and then turns around and taxes the all benefits above $50,000. I don’t see anything wrong with the current system.
Social Security is not a welfare program should not be adjusted to become one. The same response is true for the “idea” of means testing benefits—no. This move would be a sure way to diminish confidence in the program and turn it into a welfare program, which it is not. If a person pays into the Social Security program, they should receive proceeds from the program. If outside income exceeds $34,000 (or $44,000 for couples), that amount would be taxable under the current system.