Wall St. Journal – 1/6/03 – “Bush to Propose Sweeping Cuts in Taxes Under $600 Billion Plan” – Cover story and continued on P. A4
The centerpiece of the President’s “growth and jobs” package according to this article is to eliminate entirely the federal income taxes individual shareholders pay on corporate dividends – at a cost of $300 billion in lost tax revenue over 10 years. The dividend tax cut plan is controversial because it is perceived as relief for the wealthy. Only about half of all American families own stock, the article says, including shares owned in retirement savings plans, such as 401(k) plans. In 2000, the IRS reports that 63% of the dividends reported on individual income tax returns went to taxpayers with adjusted gross income above $100,000. Fewer than one in 10 American taxpayers have that income level.
SO – let’s counter that with something for the middle class! In the past, there has been a widespread misconception that anything having to do with granting tax incentives for long-term care insurance is also just helping the wealthy. BUT – how many of us realize that 1/3 of the people who are purchasing long-term care insurance have income and assets less than $35,000. Over half have incomes less than $50,000.
That doesn’t sound like the wealthy to me. I have always believed that LONG-TERM CARE INSURANCE IS MIDDLE AMERICA’S ONLY SHOT AT DIGNITY IN THEIR RETIREMENT YEARS AND THAT BUYING INFORMATION SEALS THAT OPINION WITH ME.
The tax incentives for LTCI proposed in HR 831 and S627 supposedly cost $18.4 billion for making the HIPAA age-based table an above-the-line deduction and another $2 billion for including those amounts in a Section 125 so employees can pay that amount of premium with pre-tax dollars. Seems like a very small amount for something that could help millions of baby boomers.
Write your congress people!!
