- Pilot House goes smoke-free (4/23/17)10
- Without city record, Marie Street residents on hook for thousands in sewer repairs (4/19/17)7
- Event includes the first public tour of 200-year-old Elmwood Manor (4/23/17)3
- BBB warns Jackson man's online business might not be legit (4/24/17)
- Few Southeast students face suspension, expulsion for sexual assaults, campus paper finds (4/25/17)5
- Man out on bond for alleged molestation of boys charged with abusing girl (4/18/17)
- Cape councilman Bob Fox to run for mayor (4/21/17)5
- Woman battered after smashing boyfriend's meth pipe against wall, police say (4/25/17)
- Deputy: Man kicked, broke uncle's ribs after yard-work dispute (4/19/17)
- Sikeston man charged in shooting death of Cape man (4/23/17)
Among the many deductions on the paychecks of most wage earners is one labeled FICA, which stands for Federal Insurance Contributions Act, or OASDI, which stands for Old Age, Survivors and Disabled Insurance, or just plain Social Security, which is what the withholding pays for.
Everyone cent paid into Social Security is subject to federal and state taxation, except in some states that don't have personal income taxes. When Americans start drawing Social Security benefits -- at retirement, upon becoming disabled or upon the death of a spouse -- they can be subject to taxation again, both on federal and state returns, if certain income thresholds are exceeded.
About 43 percent of Missourians currently pay state income taxes on their Social Security benefits, generating an estimated $105 million annually.
Several bills have been introduced in the Missouri Legislature to eliminate the state income tax on Social Security benefits. Some legislators see this as a first step toward the elimination of the state income tax entirely. This possibility is all the more likely because of a strong economy.
Paying taxes is an onerous burden for many Americans. Asking them to pay taxes again when they get their Social Security benefits returned to them isn't fair. It never has been. Missouri is on the right track in considering an end to the double taxation.