How Trump Tax Cuts Help Seniors Hurt By Obamacare
The announcement scheduled for later this month that seniors can expect about a 2.8% cost of living (COLA) increase in their social security (following 2018 2% increase) is another indication that the Obama era practice of diverting funds meant for older Americans to other groups is coming to an end.
Since the regular program of Cost of Living increases began in 1975, (prior to that increases were provided by legislation) there has never been a period when such adjustments were lower than they were under President Obama. Not once had there been a year in which there was no increase at all. Since 2009, two consecutive years, 2009 and 2010, provided no adjustments, and there was also no adjustment in 2015. Before 2009, the average annual increase was 4.4%; during the Obama presidency, it was 1.7%.
But Social Security was only one area in which seniors were detrimentally affected. In 2012, Americans for Tax reform performed an analysis of the 20 new or higher taxes resulting from Obamacare, and pointed out the five that most directly harmed seniors:
Individual Mandate excise tax penalty. Many seniors face a coverage gap between retirement and Medicare eligibility. Obamacare raised taxes on these younger seniors by punishing them if they don’t purchase “qualifying health insurance.
“Cadillac Plan” excise tax. Obamacare imposed a 40% excise tax on high-cost (“Cadillac plan”) health insurance plans. Seniors often face higher costs in health insurance premiums due to chronic health conditions and other risk factors. This tax is almost exclusively a tax which will fall on seniors with the greatest health insurance needs.
Frank Vernuccio serves as editor-in-chief of the New York Analysis of Policy & Government (website usagovpolicy.com). He is the co-host of the syndicated radio program, Vernuccio/Novak Report, and is also a contributor to Fox News. His columns appear in many newspapers. After graduating Hofstra Law School, he was a legislative editor for a major publishing company, then served in both Republican and Democrat Administrations. Following the 9/11 attack, he was appointed to run the hard-hit Manhattan branch of the New York State Workers Compensation Board.
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