Social Security Tax Increase
Roger Altman, deputy secretary of the Treasury, states that for elderly families in the $60,000 income class, they’ll have a higher portion of Social Security income subject to taxation “and that’s $5 or $6 a month” (interview, Opinion, Feb. 21). I wonder where Altman learned his math? Reasonable assumptions regarding this hypothetical elderly family are Social Security income of at least $800 per month and a marginal federal income tax bracket of 28%. Increasing the taxable portion of Social Security income from 50% to 85% will subject an additional $280 per month to taxation which, at 28%, will mean additional taxes of $78.40 per month.
In addition, California residents in that income bracket (probably 6% marginal tax rate) will have their state income taxes increase $16.80 per month. If this is an example of the competence of the Clinton appointees, we’re in even bigger trouble than I thought.
GLENN E. TURNER