Latest tax changes in the BBB
 

See the latest tax changes to the current BBB being voted on in the Senate. Unknown are any amendments altering this part

Means potentially more ROTH conversion ability at a lower tax rate but only if receiving SS

good luck out there, don’t be someone else’s exit liquidity!

Bonus deduction is great. But what good is it for seniors, if you are not paying any income tax.

It casts a wider net for those low income seniors who are paying income taxes and are stretching to make ends meet. We know quite a few in that position. If you are not paying any income taxes at this point, you are already ahead in the tax dept.

If you make so little in SS and 401K deductions that you pay no income tax then you’re right. For most of us who do pay taxes on SS income, this could be worth about $1,300.

One can do just so much with just so much and it appears there is an attempt to aid those living on limited SS income.

The cynical part of me has me worried that this is a small bone that they are throwing out to seniors to soften the blow from future cuts to Medicare and/or Social Security benefits. I guess time will tell?

This is better. He didn't have the power to cut taxes on SS. Only congress could and they won't. More folks benefit from the higher deduction.....IF/IF congress passes this one. It's not looking sunny right now.

How is this better? If I get $40,000 in SS benefits and it is not taxed, it is like getting a $40,000 deduction. Instead Congress is giving me a $4000 or $6000 deduction, and only if I don't have too much income, whoop de doo. I'm sure there are seniors who voted the way they did because of this promise; instead it turned out to be a bait and switch.

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CBO says it adds 3.9 TRILLION dollars to the deficient.

This is good...why?

The debt is going to send us to the stone ages. The rich must pay more taxes. It’s the only way to make a dent.

Define rich.

And while you're at it, what would be their "fair share"?

So you didn’t get everything you wanted, but you got 4,000 more in deductions and you are better off than last year, correct? It’s out of our control, so I give thanks for the increase deduction even though i haven’t started collecting, though past FRA.

No, it really doesn't help low income seniors. We're not "ahead" in any department. If we were in a financial position to have to pay more tax, it'd mean we were earning a lot more income than we are now. That'd be a great thing.

The fact that we don't pay income tax means we're TOO POOR. There's nothing "ahead" about that.

Getting an additional $6000 bonus won't do us ANY good, at all. It gives people who are NOT poor a bonus, and poor people continue to be poor.

One thing they could do, is expand Medicaid for seniors heading into nursing homes or requiring palliative care at home.

People living on low income, have little to no tax burden in the first place. If by taking the standard deduction you'd end up getting a full refund on any taxes you've paid, with a net of zero -

then getting an additional $6000 deduction wouldn't change anything, at all. You'd still net zero.

There are seniors living right here in The Villages who would be in this situation. There are millions of seniors all around the country who would be in this situation.

That's right, those seniors are already getting a free tax ride and SS benefits. When does the government stop being responsible for everyone living the life of luxury? Let seniors go through their savings and assets and pay their way. Passing money down to children and in 5 years, the seniors get all those government goodies. I've seen it happen.

I guess I need a definition of "too poor". If one is making ends meet and living a lifestyle in a nice community, I don't consider them poor or needing assistance. Many seniors don't pay income tax now and collect their SS benefits and are able to make ends meet. Why are we subsidizing that situation which many of our parents and grandparents lived through without handouts?

Bbb
 

Win, win!

Solution , don't be poor, market equites have produced over 8% over history, $200. a month investment over a working life of 35 years assuming a 6% compounded return you would have over 267 K

Like any bill making its way through Congress, the BBB will likely look very different once it has passed. Being massaged and tweaked, numerous times, by both the House and the Senate, could likely yield a ******* stepchild that does not resemble its original form. Remember, a camel is a horse built by a committee.

Actually, cutting spending is better than raising taxes on anyone including "the rich".

We Deserve a Break, and we're feeling mighty "joyful".

It passed the Senate, going to the House. Looking good for '25!

EXACTLY!!!!

The bill includes a TAX BREAK. It is intended to ease the burden on seniors who are PAYING TAXES. It is not intended to be yet another welfare program or government freebie. If you are paying ZERO TAX, then you don't need TAX RELIEF

That rich , according to the bbbwill still have big tax cuts. Our grandchildren and children who are not rich will still be hurting. May led to more mulitgeneatioal homes. Plus the reports are saying increase in homeless ?hunger?unemployment?poor unaffordable health care. Yep bbb will benfit some the rest.. not happening. For the record it will hurt those born and raised here in the USA.

The "rich"??? Who are they??? Anyone who actually contributes to society by paying taxes, donating to charities, employing others and venturing capital?????

"The reports are saying....."---what "reports"? I think we can all guess the source of that misinformation.

This class warfare rhetoric has to end. The top 5% currently pay 65% of all taxes. And that's "fair"????? Forty-seven % pay no tax----and that's "fair". But by all means let's continue the populist rhetoric that started in 1933 and has only become worse since then.

Amen

Curious, who's too blame for folks being poor?

If you got too much income in year need be taxed instead of using all exemptions lawyers put in so ones with too much get out paying taxes.

Any deduction in taxes is GOOD i don’t care how much or little person makes.

Perhaps we can say “the rich” are those who will put any additional tax breaks into their investment accounts rather than into the economy. Give $1,000 to someone making less than say $100K and it will likely be spent. Give $1,000 to someone making more than $400K and they might not notice if they dropped it on the floor, they certainly aren’t going to spend it in Publix.

It would be interesting to see statistics on the percentage of income the top 5% make. Do the top 5% who pay 65% of taxes also receive 80% of income? Similarly, it would be interesting to see what their effective tax rate is. I looked but wasn’t able to find that in a quick search.

Funny how all sudden worried about debt. About 30 years too late for that ship to sale. All feel good programs ran up debt and they still don’t feel any better. I like how some bean counter predicts 3 plus trillion to debt in 10 years. Nobody can predict what going happen in 10 years let along 4, and we know what 4 years I’m talking about. Until stop the blame game and stop spending more than collected nothing going to change.

I guess they are anyone who worked hard all their lives and were fiscally responsible.

I don't mind paying my share and I know that society has responsibilities that need to be met. I do have major heartburn with the tax dollars that are extracted from me being used for so many ridiculous things (foreign and domestic). The people that truly need help should get it, no questions asked. The people that have the ability to fend for themselves and won't are the worse kind of scum. Not only do they steal from us they steal from those truly in need. The welfare systems that have been put in place the past 50 or 60 years are criminal. The people that put those programs in place are the ones to blame for many of our problems, financially and socially.

The problem is those people can't and won't be punished or removed from their positions of power.

I think it irresponsible to be adding trillions more to the debt. Why don’t we cut corporate welfare? The true definition of socialism. Why have we been subsidizing fossil fuels, agriculture, technology over and over for decades , yet a child getting a free lunch at school is the problem. The multi millionaire and billionaires are making record profits as CEO’s yet typically pay a much lower percentage in taxes due to many loopholes. If I pay 20% in taxes, then it’s reasonable for a billionaire to pay at least 20% but most pay a much smaller % due to deductions. The 20% impacting me, is the same impact on a billionaire. That money would would greatly increase the federal government’s income which would make our problems much less. A first world country takes care of its citizens. It’s only 3rd world countries that don’t take care of their citizens. That’s the benefit of living in a wealthy advanced country. The more poor and homeless you have the uglier the country becomes both physically and financially. It becomes much more crime ridden and dirty. First world countries all create safety nets for their citizens. That’s the benefit of an advanced country. Yet somehow we continue to go backwards towards the 1930’s when there were less protections for citizens and more abuse of citizens by corporations. This is crazy.

Look my problem with this BBB is not even its supporters truly know all that is in it.
I have no opinion if it is a Big Beautiful Bill or a Big Pile of Crap, I believe I've somewhat isolated myself from any damage.
But our elected official on both side of the isle should go over it 10 times before they vote yea or nay.
Putting an artificial deadline might sound like a good idea at the moment, but the American people are the ones that will suffer if all the i's are not dotted and the t's are not crossed.

And factor in the difference between income and net worth, managing your investments to have the "income" you want the rest better positioned for growth , that by the way is a very positive thing for the economy that benefits everyone. The old adage is proven again and again " A fool and his money are soon parted". Those who have large wealth did something right to acquire that wealth , buy financing good ideas that grow the economy via productive enterprises , productivity, efficiency are why we have historically the highest standard of living for everyone

And just what do people think happens to money deposited into an "investment account"???? The CEO puts it under his mattress???? Corporate profits are either put back into expanding the business (more jobs, new construction), increasing salaries of workers, or by declaring a dividend, which then is reinvested and so on. Again, we need to dump the "rich and corporations are bad" rhetoric, and also realize that you cannot make the poor richer by making the rich poorer

And to answer your question, from the IRS:

"According to the latest IRS data, the top 1% of earners paid 40.4% of all federal income taxes in 2022. This underscores the extent to which the burden of the income tax system falls on taxpayers from the highest income groups.

Do the top 1% pay 40% of taxes?
The top 1% of earners typically pay much more in taxes than many other Americans. Nationwide, this group contributes 45% of total personal income taxes collected. However, the top 1% doesn't pay the same amount everywhere. Therefore, some states may be more dependent on this group than others for tax revenue.


What do the top 5% pay in taxes?
Most of the government's federal income tax revenue comes from the nation's top income earners. In 2021, the top 5% of earners — people with incomes $252,840 and above — collectively paid over $1.4 trillion in income taxes, or about 66% of the national total.


Did the top 5% pay 66% of all federal income taxes?
The top 5% pay more than 65% of federal income taxes, the highest 10% pay 75% of them and the top 25% are accountable for 89%. The bottom half of earners, who make below $46,627 a year, paid just 2% of federal personal income tax, according to the report.

Who pays 97% of all federal income taxes?
The top 50 percent of all taxpayers paid 97 percent of all federal individual income taxes, while the bottom 50 percent paid the remaining 3 percent."

And did they represent 80% of the income? Who cares, THEY EARNED IT, THEY WORKED FOR IT, AND THEY SUCCEEDED. Let's stop punishing success in this country and maybe we'll climb out of debt.

Latest tax changes in the BBB
 

Income tax paid on Social Security funds the Social Security Trust Fund.

We need to understand how that proposed change affects this funding mechanism and the impact, if any, on the projected Social Security Trust Fund shortfall

Spoken as someone trying to justify and protect the 5%.

Disclosure: I am definitely not part of 5%. While I believe I will personally benefit from parts of this bill, my country will be severely damaged by it.

Who cares? If you want to stand on the 65% of overall payments then it’s important to know the other side of the equation, the percent of overall income.

It’s interesting that we can easily find data on how put upon the millionaire class is but it is difficult to learn how much they benefit for shouldering such a burden. It’s almost as if the statistics were generated specifically to prove a point.

There are no proposed cuts to Medicare though the premiums will continue to increase as they have every year. There’s also no proposed cuts to SS though there are changes that include increasing the retitement age which has been done before, making more income eligible for SS taxes, and an increased vigilance of detecting fraud and prosecution for those who commit fraud. No party is cutting SS checks as that would be political suicide.

Backwards? Lol, this country has been too generous to the poor in that we now have many more ablebodied who have found they can survive without working and many have taken the sad route of drugs.

People in the USA have become lazy so we had to bring in people who know how to work. And in 5 years or the next generation the US will have the same problem because that group of workers will have figured out the system of "getting a higher education" and not performing physical labor. Do you then bring in millions more to work to reach the same conclusion?

This touting of the poor is ridiculous when only a certain percentage of Americans are footing the bill for the rest. What did one think would happen when employers hire under the table and not providing healthcare benefits, decent wages, not paying into the SS system, no retirement benefits or 401 contributions to these off-the-record hirees.

Those poor you are mentioning are a good portion of that population along with those who work the system. Then we have the number of unwed mothers and fatherless children that need supporting. How about no children if you can't care for and feed them?

I am truly supportive of those who are poor and need extra help but there are millions of people in that hot air balloon basket that don't belong there and it ain't gonna fly no more.