A retired reader wrote recently about finding he is in a higher tax bracket than he expected to be.

He isn’t alone. An entire generation of middle-income savers has been hoodwinked by federal tax policy in a true “give with one hand, take with the other” gesture. If you are retired and reading this, there’s a big chance you are one of them. Here’s how it happened.

Congress voted, in 1983, to start taxing Social Security benefits. The formula for taxation was written in such a way that few retirees would be affected in 1984. But the provision wasn’t indexed for inflation. So more retirees pay the tax every year.

Read the complete article at The Houston Chronicle