Proposal to Repeal Tax on Social Security Benefits

President-elect Trump has repeatedly promised to repeal the tax on Social Security benefits. Under current law, depending on a taxpayer’s income, up to 85% of Social Security benefit can be subject to federal income taxes. Taxpayers with less than $32,000 (joint returns) or $24,000 (single filers) in annual income are not taxed on Social Security benefits. When a taxpayer’s whose modified adjusted gross income plus one-half of their Social Security benefits exceeds these base amounts, they’re required to include in gross income the lesser of (a) 50% of the excess of such combined income over the base amount, or (b) 50% of the Social Security benefits received during the taxable year. The percentage is increased to 85% for taxpayers whose income exceeds the “adjusted base amount” of $44,000 (joint returns) or $34,000 (single filers).

We asked two professors and authors of ALM’s Tax Facts with opposing political viewpoints to share their opinions about Trump’s renewed calls to eliminate federal income taxes on Social Security benefits.

Below is a summary of the debate that ensued between the two professors.