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Despite the tax rate reductions among the Jobs and Growth Tax Relief Reconciliation Act of 2003, leading marginal income tax bracket for many retirees can be a whopping fouthy-six.3%. Why? Because Social Security benefits are subject to income income tax. Those affected are Social Security recipients who check out good fortune (misfortune?) to get subject to both the 25% income tax bracket along with the 85% inclusion rate for Social Security benefits.

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