OPINION:
There’s a tax issue no one is talking about, and it should be part of any federal tax-reform plan. After paying into the system for years, seniors receive Social Security benefits, but if they’re struggling and need to bring in income as sole proprietors, they’re essentially forced to pay for their own benefits. They are charged the onerous 15.3 percent self-employment tax to pay for Social Security, although they are recipients of the program. And to add injury to insult, their Social Security benefits now become taxable. This is the shell game: The government gives them their benefit check with one hand, and takes it back with the other.
A senior who only earns between $30,000 and $50,000 can easily end up paying 25 percent and 35 percent in total income taxes. Even a generous income-tax reduction won’t help people in this situation, as it is the self-employment tax that is the primary issue.
Congress should consider an exemption from the self-employment tax for self-employed seniors who are on Social Security. This would potentially help millions of people. Our seniors have earned their benefits. Don’t make them keep paying it themselves — it’s their turn to collect it.
CHERIE ZASLAWSKY
Menlo Park, Calif.
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