Political Nutz

Observations on the pathetic state of American politics

Tax Cut Extension: A Lose, Lose, Lose for Retirees

So Mr. Obama has signed the “historic tax compromise.”  Seems like there’s something in it for everybody, right?  Well… not quite. 

Retired folks get nothing now and way less later.  Retirees living on fixed income from Social Security and personal savings get zero benefit (except for whatever small capital gains they may realize on investments).  It’s also clear that with the reduction in withholding for Social Security, Republicans are aiming at balancing the budget next year by taking a big bite out of Social Security and Medicare, their favorite targets. So while multi millionaire bankers, CEOs and Senators are wallowing in tens of thousands of dollars in tax breaks senior citizens, who had their savings accounts ravaged by the Great Recession, will have to get by on reduced Social Security benefits and higher medical costs.

Righties will argue that the continued 15% tax on dividends and capital gains is a major benefit to retired folks.  But they conveniently ignore the fact that fewer that half of U.S. families have any dividend/capital gains income at all.  No, those breaks work most for the super rich, not for the rest of us.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: