Yes folks, just as 55 million Social Security recipients are about to get their first benefit increase in three years, Congress is looking at reducing future raises by adopting a new measure of inflation that also would increase taxes for most families — the biggest impact falling on those with low incomes according to an AP report.
If adopted across the government, the new inflation measure would have widespread ramifications. Future increases in veterans' benefits and pensions for federal workers and military personnel would be smaller. And over time, fewer people would qualify for Medicaid, Head Start, food stamps, school lunch programs and home heating assistance.
Taxes would go up by $60 billion over the next decade because annual adjustments to tax brackets would be smaller, resulting in more people jumping into higher tax brackets because their wages rose faster than the new inflation measure. Annual increases in the standard deduction and personal exemptions would be smaller…
Read more at http://www.usatoday.com/money/perfi/retirement/story/2011-11-07/social-security-formula-change/51112154/1
No comments:
Post a Comment