The good news is that Social Security benefit payments will rise by 2.8 percent in 2019, the largest cost of living hike in seven years. The bad news is much of that increase will be devoured by the Windfall Elimination Provision (WEP), which taxes Social Security payments.
This is double taxation. FICA withholds money from your pay while you're working, but you're also taxed when you retire under the WEP, which was enacted in 1983.
If your gross adjusted income exceeds $25,000 as a single person, you must pay taxes on your benefits payments. While $25,000 may have been a “windfall” 35 years ago, it is not today.
It's time for WEP to end.
The AARP's highly vaunted lobbying force was MIA during congressional action on the GOP's "Tax Reform" bill last year. Seniors got screwed while hedge fund hustlers and private equity predators retained a huge tax break on their windfall earnings via the Carried Interest Rate, which candidate Donald Trump vowed to end.
Democrats could it end next year If they gain control of Congress on November 6. Unless AARP wages an effective lobbying campaign, its initials will really stand for “Always Avoid Retirees' Priorities.”
Kew Gardens Hills