Under the Formula for Taxing Social Security Benefits, Low-Income Taxpayers

question 28

Essay

Under the formula for taxing Social Security benefits, low-income taxpayers are not required to include any of the Social Security benefits in gross income. But as income increases, 50% of the Social Security benefits may be included in gross income. Further increases in income will cause as much as 85% of the Social Security benefits being subject to tax. Does this mean that the taxation of Social Security benefits is more or less progressive than the taxation of other types of income?

---

Definitions:

Prenatally

Pertaining to the period or development before birth; during or relating to pregnancy.

Male Sex Hormones

Androgens such as testosterone, which are responsible for the development of male secondary sexual characteristics and reproductive functions.

Gender Identity

An individual’s personal sense of their own gender, which may or may not correspond with the sex they were assigned at birth.

Lesbian Sexual Orientation

A sexual orientation characterized by a romantic or sexual attraction to individuals of the same gender, specifically between women.