Social Security Benefits For Some Mean Higher Taxes For Others

PITTSBURGH (KDKA) — Millions of Americans will get an increase in Social Security next year, but that also means others may end up paying higher taxes.

At the Lawrenceville Senior Citizen Center, a low-stakes game of bingo was underway shortly after the government announced higher Social Security benefits next year.

“It’s about time. We need it. Yes we do,” Irene Deutsch of Lawrenceville told KDKA Money Editor Jon Delano.

The cost-of-living increase is 3.6 percent – about $516 a year for the average Social Security recipient.

Many seniors say they know exactly where those dollars will go.

“Probably spend it on medicine. We take a lot of medicine. Both of us took a stroke,” said Betty Rawl.

Not everyone is happy. After all, the last Social Security increase was back in 2009.

“We haven’t had a raise in three years. Everything has gone up. I think we should be getting a lot more,” noted Tony Golembiewski.

About 55 million seniors will see an increase in January, along with 8 million poor and people with disabilities who get supplemental benefits.

But to pay for the higher benefits, 10 million Americans who make over $106,800 will have their wages taxed for Social Security until they reach the new cap of $110,100.

And taxes could go up for everyone.

Last year’s payroll tax of 6.2 percent was cut to 4.2 percent of pay for this year.

But that jumps back to the higher rate next year unless Congress agrees to President Obama’s Jobs Bill which cuts it to 3.1 percent.

While most seniors seem to appreciate the Social Security benefits increase, how helpful it is really depends on how high Medicare premiums go up for seniors.
An announcement on that is expected later this month.

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One Comment

  1. bruceUSA says:

    I’m wondering. Along with the increase will seniors get the funds from the “in between years” and will those delinquent funds be pro-rated and interest added in??? If we were talking banks or Wall Street you bet your backside they’d be getting every penny from previous years!!! And yet we “bailed them out”!!! But once again seniors (who faithfully payed into SS) coming up on the short end of things. But that’s OK, we can bare it. I think not!!!

  2. Zoeyzotron says:

    interesting fact. In 1950 there were 16 workers paying in for everyone Social Security recipiant. today it is 3 to 1. 2020 it is 2-1.

    I think it is best to plan on not receiving this benefit unless changes are made.

  3. Phyllis Gallagher says:

    How about we thin the herd a bit.
    Go back to the origional Social Security act in it’s entirety.
    That means ONLY those who payed in get a check..
    While we’re at it lets go back to reimbursing our politicians for travel, lodging and food ….like in the begining.
    Love, Grandma

Comments are closed.

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