Millions of Social Security recipients pay taxes on their benefit income – and a growing number of Republicans and Democrats would like to see those taxes reduced or even eliminated.
Former Democrat Sen. Joe Lieberman said a cut in taxes on retiree's Social Security income would be a "big boost for a lot of seniors." Lieberman made the comments during an appearance Friday night on Newsmax's "Eric Bolling The Balance."
A group of House Republicans have proposed to end the taxation of Social Security benefit income on retirees.
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"Why not pull the tax," Bolling asked Lieberman, adding, "It's already been taxed senator, this is money people have already earned, paid taxes on the money they earned, they paid into the Social Security system, it's a double-dip by the feds."
"It's a really interesting idea and it's an affirmative idea," Lieberman said.
"The last thing I saw that happened to Social Security is that Bernie Sanders recommended an increase of $200 a month for every recipient."
"The statistics are surprising to a lot of people, but for 40% of seniors in America, Social Security is the only income they have, and so it really matters a lot," he continued.
"When you add in inflation, that makes it even harder these days. So I guess the question is always how much does it cost and can we afford it? But it sounds like a good initiative."
He added he admires House Republicans for bringing up the idea, particularly after some Republicans recommended cuts in Social Security, while others such as Senate Minority Leader Mitch McConnell, R-Ky., House Speaker Kevin McCarthy, R-Calif., and "everyone else with power in the Republican Congress said, 'No way.'"
"This is the way to go back on the affirmative, and then they might be surprised at the number of Democrats who agree," Lieberman said.
Last month, Newsmax reported a Republican-backed bill from the previous Congress will likely be re-introduced calling for an elimination of taxes on Social Security income.
Before 1984, seniors' Social Security was exempt from federal taxation, but a law that year changed the rules, making any individual who has an income of up to $34,000 eligible to pay taxes on up to 50% of their benefits.
And those making over $34,000 have to pay taxes on up to 85% of their benefits. For married couples, a Social Security benefits tax on up to 85% hits automatically when a joint return shows $44,000 or more in income.
The law never indexed those threshold amounts to inflation and today the average senior's income is at $47,620, leaving more than 50% of current Social Security recipients paying tax on their benefits.
Lieberman noted, while some Democrats might worry about the lost tax revenue, "they're going to be favorable to seniors from a humanitarian point of view."
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