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Latest revision as of 06:56, 17 May 2026
Despite the tax rate reductions for this Jobs and Growth Tax Relief Reconciliation Act of 2003, tips for sites marginal income tax bracket for many retirees is really a whopping 46.3%. Why? Because Social Security benefits are subject to income in taxes. Those affected are Social Security recipients who have enough good fortune (misfortune?) pertaining to being subject to both the 25% income tax bracket and also the 85% inclusion rate for Social Security benefits.
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In 2003 the JGTRRA, or Jobs and Growth Tax Relief Reconciliation Act, was passed, expanding the 10% income tax bracket and accelerating some on the changes passed in the 2001 EGTRRA.