At Work

It’s great to be a “seasoned” citizen in America

Looking at averages, selected statistics, etc. society automatically concludes if you ar 65 or older your are poor and in need of massive government (I mean younger Americans) support.

It matters little that many seniors have no mortgage payment, may have accumulated other assets regardless of their current income or that whatever their income, their lifestyle in retirement is likely consistent with their entire lives. My other pet peeve is that seniors (that includes me by the way) had a lifetime to prepare and plan for age 65 and beyond.

imageNearly 50% of the entire federal budget goes to older Americans. That is a tremendous burden on younger Americans and as the senior percentage of the US population grows, it will be a greater burden.

But the allocation in favor of seniors does not stop with the federal government. Most of the states with an income tax do not tax all or a portion of Social Security, government pensions and in some cases military pensions.  Here is the full report. Of course, this lost revenue shifts more of the tax burden to working families. The very Americans our politicians say need so much more help.

imageThe most egregious exclusion from income tax is the government pension. Where is the justification to exclude from taxation government pensions when this group is the only remaining group of workers with near universal (and generous) defined benefit pensions? The bulk of Americans will rely on IRA, 401k and similar plan withdrawals which are generally taxed. [Note: In the past many government workers did not have Social Security, but that began to change over thirty-years ago]

Average taxpayers in these states pay for funding of these government pensions and then pay again to make up the lost revenue when they are tax excluded.

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3 replies »

  1. You want to help the younger workers, vote Trump. If he can get his tax plan through Congress, low income and the middle class will be helped with $25,000 for single filers and $50,000 for married couples tax exempt.

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  2. This all goes to prove that it is not only the Federal government who tinkers with the tax code causing all kinds of economic disparities. The State governments are quite adept at this also.

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