Social Security Myth

 I have another Myth or misinformation today from Social Security for you. The question is: Which political party increased the taxes on Social Security annuities? In 1993, legislation was enacted which had the effect of increasing the tax put in place under the 1983 law. It raised from 50% to 85% the portion of Social Security benefits subject to taxation; but the increased percentage only applied to "higher income" beneficiaries. Beneficiaries of modest incomes might still be subject to the 50% rate, or to no taxation at all, depending on their overall taxable income. This change in the tax rate was one provision in a massive Omnibus Budget Reconciliation Act (OBRA) passed that year. The OBRA 1993 legislation was deadlocked in the Senate on a tie vote of 50-50 and Vice President Al Gore cast the deciding vote in favor of passage. President Clinton signed the bill into law on August 10, 1993. If you want to read more go to ssa.gov. To get a free copy of Your Guide to Social Security call 855-22money or ask at yoursafemoneyshow.com.