Legal Commentary

Obama's Best Plan Yet: No Taxes for Seniors

By Jeralyn

Sen. Barack Obama has relased his first plan I'm on board with: no income tax for seniors making less than $60,000 a year.

Critics say the seniors would be getting too much of a break because of Medicare and Social Security.

Seniors can't live on Social Security and Medicare alone. And if they have to go into a nursing home, Social Security doesn't pay for that. A typical nursing home in Colorado is $6,500 a month just for room and board. Medicare picks up some therapy and medication, but that room and board is a huge amount of money to pay. The only break is if you end up in the nursing home after a medical injury and need rehabilitation, which runs about $10,000 a month, Medicare pays for 120 days. Then, you are on your own.

Medicaid only helps if the people are poor, in which case they likely won't owe income tax anyway.[More...]

There is going to be an acute shortage of funds to house our increasing aging population. A tax break is an excellent idea.

Obama says:

If you work hard and pay into the system, you've earned the right to a secure retirement," says a description of the plan on the Obama campaign's Web site. "But too many seniors aren't getting that security, even though they've held up their end of the bargain. Lower- and middle-income seniors are struggling as their expenses on health and energy skyrocket while their incomes do not keep pace."

Other parts of Obama's plan:

He proposed new tax break for seniors is one of about a dozen tax changes proposed by Obama, including raising rates on people making more than $250,000 a year; extending most of the rest of President Bush's tax cuts; subsidizing Social Security and payroll taxes for low-income workers; and boosting income and child care tax credits for low-income workers.

Full post as published by TalkLeft on August 12, 2008 (boomark / email).