- Updated: Pedestrian killed during traffic collision on I-55 (10/21/16)4
- Scott County Sheriff Rick Walter faces challenge from criminal investigator Wes Drury (10/21/16)8
- Shooting injures two people in Cape early Tuesday (10/19/16)34
- 18-year-old killed in one-car crash Thursday morning (10/21/16)1
- Man arrested after dispute at school spurs brief lockdown (10/21/16)6
- Perry County: A great place to find home away from home (10/14/16)
- 'I feel for them' (10/20/16)1
- Tours provide a glimpse of Cape Girardeau's supposedly haunted past (10/17/16)1
- Benton man accused of statutory rape, selling pot (10/20/16)1
- Crews are working on the new Drury Hotel (10/21/16)1
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.