Make Social Security payments to eligible persons untaxed income.
Retirement programs usually fall under one of two categories. They are either funded with pre-tax dollars and taxed when the money is paid out, or paid with after-tax dollars and paid out tax-free. Social Security was intended to act as a retirement program, not a way for the government to earn double-taxes on the people's income. Under the current laws, Social Security is paid with after-tax dollars and then up to 85% of the pay-out is likewise taxed. This makes it difficult for senior citizens who depend on Social Security as their sole income.