Given SS was not taxed when it was paid, unlikely a new law would pass supreme court muster - assuming they actually do their job. If SS is to be untaxed, then so to should be 401K, 403B, pensions, etc.
South Florida, a senior enclave, sees more people ‘unretiring’ due to living costs
- Thread starter Dave Hess
- Start date
First. You do not get taxed on the income tax you pay into SS.
Second, SS is a transfer payment system. There's a law for taxing gross income and a separate law for distributing the revenue. You don't have an account with the SS Administration. There is a record of how much you've contributed but that goes into the calculation of benefits.
Third, Benefits paid far exceed the lifetime contribution of the pensioner/disabled/survivor.
In 2024 the annual maximum amount of SS a wage earner could pay is around $11k.
Last edited:
Yes, you do, at least on your portion. As to if your employer matching part is, I have no idea. Because it's complicated, and I am thinking of only the federal income taxes:
https://www.nasdaq.com/articles/are...-taxed-the-answer-isnt-as-simple-as-you-think
O yes you do...
Another thing not mentioned in the article is that a lot of people early retired due to certain mandates. I have a feeling that a lot of those people are unretiring.
What I'm saying is that the amount of SS you pay is deducted from your taxable income when you calculate your income taxes. It's pre-tax like your 401k contributions.
I am retired and get SS and it is taxed....
Yes, but your SS contributions when you were working were deducted from your taxable income. So no, your SS contributions were not taxed. You contributions when you were working paid the benefits for current retirees. Your benefits, above a certain amount, are taxable at the federal level of which the legislation was passed in the 1980's to help keep the system solvent.
and that does get taxed...again...
I get this, however, some are confused, @zzyzzx we must remember that we do not pay taxes on the money that we contribute into Social Security for our entire working careers. That money goes in tax free. Much like a 401k the money you save is not taxed but tax has to be paid on income at some point which is typically when you withdraw it and hopefully in your non working years a lower tax bracket..
Last edited:
I think it’s sad to see people in retirement with homes that are paid off, being forced out by property taxes increasing greater than they can afford on fixed incomes.
Similar to the idea of eliminating taxes on SSI payments, I think if you’re 60+ and have lived at the same address for 20 years or more that property taxes should either never rise over what they were the day you turned 60, or should just be eliminated altogether.
If you leave the house to your kids when you die, or sell to move somewhere else, property taxes resume. Gives people an incentive to stay in communities, but also if you’ve been there 20 years there has likely been plenty of property ownership churn around you and newer construction to boost the tax base.
Similar to the idea of eliminating taxes on SSI payments, I think if you’re 60+ and have lived at the same address for 20 years or more that property taxes should either never rise over what they were the day you turned 60, or should just be eliminated altogether.
If you leave the house to your kids when you die, or sell to move somewhere else, property taxes resume. Gives people an incentive to stay in communities, but also if you’ve been there 20 years there has likely been plenty of property ownership churn around you and newer construction to boost the tax base.
There doesnt have to be any repairs made. The new law requires HOAs to have a reserve fund for future repairs. The problem in Florida was HOAs kept the HOA fee low without reserve funds for maintenance and repairs. It is almost a scandal that most but not all HOAs ignored the common sense reserve fund for maintenance and repairs.
The governor has now made it law. VERY sad for sure but one result of this was that building collapse.
Here is a brief article I found. It will certainly help in the long term people who buy a condo, once the reserve funds across the state are built to required levels, it will also make them easier to mortgage. Sometimes banks would turn down funding a condo purchase because of lousy reserve funding. It will also insure a new buyer doesnt get whacked by a HOA bill after purchasing.
IN the meantime many seniors will get burned but there is no solution other than to finally do it the right way. Because we know politically another building collapse will squarely be blamed on in-action. This below is a nice summary that explains it all. I didnt even know it was updated in 2023
https://reservestudyfl.com/2023-florida-reserve-funding-updates/
I dont agree, why should young (some struggling, mortgages etc) families support seniors by paying higher taxes who are a more wealthy demographic?
It's the same old, take from one group of people and give the money to someone else.
- Joined
- Nov 6, 2022
- Messages
- 339
"soft landing"
- Joined
- Nov 6, 2022
- Messages
- 339
This is less true than ever before. Healthcare is a big business and now that the government (taxpayer) are heavily subsidizing it (Healthcare Exchange), large hospital systems are moving into small towns and only growing. Everyone gets expensive treatment nowadays between the Exchange and Medicaid.
So if that is true then if you have cash right now it might be a good deal - assuming everyone else has cash to put in also?
What happens if someone can not pay? I assume forced sale or foreclosure?
Yeah, sadly that is what is taking place. I have been following loosely, actually because my wife keeps sending me stories on it. The Condo's in Florida are in crisis and just wait until next year once the inspections are done. Some owners of buildings already getting smacked with 6 figure special assessments. To make matters worse, the value of those condo buildings requiring such huge amounts of money to build up their funds are going into the toilet. So there owners are really between a rock and a hard place.
Never mind the media extravaganza turning off potential buyers by the boats loads. The only thing I am unsure of right now is how prevalent. Simply because we know how the media makes issues larger than they are but my personal feelings as much as I hate the media is that the Florida crisis it blowing up the entire condo market place.
We must also remember, politics, I wonder if these regulations will be eased to a slower implementation. I guess we will see.
One thing for sure, condo boards have routinely underfunded reserves and a price will have to be paid now, it will be a double whammy too, special assessments and falling condo values. However newer buildings will be in better shape for sure
Last edited:
If you’ve lived at the same address for 20 years, you’ve paid for your bit of the infrastructure around your home. The money those people would recoup in their abatements will most likely get spent at local businesses, especially as they continue to age and drive less. And I’m not sure you read what I wrote, because the minute a person who fell into this category decides to move of their own accord, they again go back to paying property taxes. New address, new commitment to paying for those services.
This doesn’t have anything to do with young vs old, it has to do with offering people who’ve invested their lives in a community (20+ years) a way to ensure they won’t be forced to leave because they are having to pick up the tab for the people just moving into the community in new housing or apartments. The people who’ve been there over 20 years aren’t getting any new services from the local authority, but you can bet your rear end that those new developments have gotten new roads, water lines, sewer lines, etc. How is that not forcing retirees to foot the bill for the young people who should be working to pay for what they’re receiving? Or are you ok with this as long as you’re in the receiving group?
Last edited:
I dont know, to me, you are posting the cycle of life. Your saying it isnt about young and old, well who is going to pay for the old?
Also the people you bring up who invested their lives for 20+ years, got the same deal as the generation before them, assuming your argument those people of 20+ years benefited from the generation before them much as you describe the new generation coming into the area now.
Also it cost a lot of money maintaining the old sewer systems, drainage systems, water systems as it does putting in new ones.
You can also bet your rear end that those new developments will be paying for the rest of their lives just as the older are paying now. So I am unsure of the debate. It cost money for government to run, everyone pays their share every year of their lives. They according to your post benefit when they are young but make up for it when they get older because they pay the same.
Your also leaving out a whole slew of others things, like sales tax income. The young are contributing more to local coffers because they spend more. It's all irrelevant to me. You live in an area, there is no protected group, young or old from paying their fair share even though seniors in MANY areas do get a small tax break, some high tax areas these breaks are so large that the young have a valid argument that they are supporting the old. Nassau County NY is one such area where young people pay 5 digit tax bills and older residents get 4 digit tax breaks.
Similar threads
- Locked