As we approached the end of 2012, we were all left hanging on the edge of the fiscal cliff, awaiting legislation to prevent us from falling. New Yearâs Eve came and went, and we started slipping off the cliff. Finally on the dawn of the New Year, our legislators enacted the Taxpayer Relief Act. Happy New Year!
The new act really didnât give us much to cheer about. For workers, it increased the Social Security tax by 2 percent. So our first paychecks in 2013 will be lower. For those married couples earning more than $450,000 (singles, $400,000), their tax rates went up to 39.6 percent from 35 percent. Most of the other changes included in the new act create more future fiscal cliffs for the newly elected Congress to handle. The concerns over spending cuts on programs that would impact seniors in 2013 were pushed to new cliffs. The solutions to our government debt ceiling were deferred for 60 days. The planned reductions in Medicare physician payments of 27 percent were deferred for another year. Thank goodness for that, since I anticipated physicians no longer taking Medicare patients or requiring us to have private/supplemental insurance to cover the gap.
The new act officially repealed the Community Living Assistance Services and Supports Act which was part of the 2010 health care reform legislation. The CLASS act was designed to create an affordable, government-run long-term care insurance program. It wasnât enacted, because actuaries couldnât figure out how to fund it. The new act created a new commission to redesign an affordable long-term care alternative for aging Americans. Once the commission members are identified, they will have six months to propose a new plan. So stay tuned for the next âact.â
Now the new Congress picks up the bouncing ball. Meanwhile, we wait and the government spending continues. We have all had to tighten our belts to address the rising costs of health care, food costs, and services. We need a courageous congress that is willing to do what its predecessors wouldnât â cut spending – but donât target programs that support seniors. Letâs stop giving money to other countries and pay more attention to the needs here at home. We lend out billions of dollars in foreign aid, but delay in providing aid to the victims of the East Coast storm. Thatâs crazy! Letâs move to decisive action and stop deferring the decisions. Our legislators need to reach across the aisle and work together to get it done. One of our Sun City neighbors who enjoys the comedy of Larry the Cable guy had a suggestion worth consideration: donât pay the legislators until they âgit r done,â or as the Nike slogan says â âjust do it.â
Send your questions and ideas to: Sun Day, Frugal Forum Column, P.O. Box 7505, Algonquin, IL 60102, or, by email to: thefrugalforum@gmail.com
