The I.R.S. Targets 232,000 Social Security Recipients

This week, the I.R.S. admitted that they are planning to start docking the Social Security checks of 232,000 Social Security recipients in an attempt to collect back taxes. As a result, many of these Americans may be trying to survive below the poverty level.

According to the San Jose Mercury News, Jim Seidel, a tax attorney and editor of RIA's Federal Taxes Weekly Alert, "Apparently, the I.R.S. now feels it has enough safeguards in place to avoid a public relations disaster . . ."

Carrie Ardelean, Vice President of Operations with Americans for Fair Taxation, stated, "Here's how bad it could get. The average retired worker now receives a mere $845 monthly Social Security check. Deducting the proposed 15% will reduce that check to $718, just $2 above the H.H.S. poverty level for a retired worker. Since these are averages, about one-half of the targeted Social Security recipients may be receiving monthly checks which could put them below the poverty level."
[Sources: http://www.ssa.gov/pubs/10024.html and http://aspe.hhs.gov/poverty/01poverty.htm ]

Ms. Ardelean further commented, "This is unfortunate news for many Americans trapped into surviving from one Social Security check to the next. If our plan -- the FairTax -- is passed, docking Social Security checks will not be necessary. In fact, the FairTax -- a federal consumption tax designed to replace the entire federal income tax system -- will eliminate all federal withholding from paychecks, pensions, and Social Security checks. In addition, the federal government will no longer track income of any kind, because only consumption will be taxed. Meanwhile, FairTax revenues will fully fund Social Security and Medicare at their current levels. This should be welcome news, especially for targeted Social Security recipients who are barely surviving, month to month, on their meager Social Security checks."