Patti's Blog - Advocate for Elders, People with Disabilities and Their Families

WSJ: Tax Breaks Under Fire

Excerpt from: TaxProf Blog (click for post)

 

Election Day is almost here and the tax code is in flux, with the presidential candidates presenting starkly different plans for income-tax rates, capital-gains taxes, estate taxes and other key provisions for 2013 and beyond.

But one idea is gaining support from both political parties: cutting individual income-tax breaks. Republican presidential candidate Mitt Romney has advocated putting an overall limit on deductions such as the ones for home-mortgage interest and state and local taxes, while President Barack Obama wants to cut the value of those and others, but only for top-bracket taxpayers. It is too soon to predict exactly what will happen to which benefits, or when. ...

Overhauling the tax code could produce a simpler and more efficient system, say economists in both political parties. The individual income tax brings in more revenue than any other federal levy—about 47% of the total—yet it forgoes almost as much to scores of exceptions for mortgage interest, employee health insurance, capital gains, charitable donations and many more. (Please see the table [right].)

In fiscal 2011, for example, the individual income tax raised $1.1 trillion, but "lost" $953 billion to such breaks, according to estimates by Congress's Joint Committee on Taxation. The Simpson-Bowles deficit-cutting commission and Mr. Romney both have suggested cutting tax rates even as deductions are pared back. Recently 80 CEOs of major companies joined them, calling on Congress to enact "comprehensive and pro-growth tax reform, which [cuts tax breaks], lowers rates, raises revenues and reduces the deficit."

Such an overhaul could make any remaining tax breaks less valuable. In the current system, a taxpayer in the 35% bracket saves 35 cents per dollar of deductions. "If rates are reduced, the value of deductions and exemptions will fall proportionately," says Roberton Williams, a tax expert at the Tax Policy Center in Washington.

In general, experts say, the biggest tax breaks are likely to be the ones that will attract the most scrutiny, so knowing what might be in play is the first step in changing your strategy. Here is a roundup of some of the most widely used tax benefits and who uses them, plus tips for maximizing them where possible.

• Health-related tax breaks
• Retirement-savings incentives
• Mortgage-interest deduction
• Long-term capital gains and dividends
• State and local income-, sales- and property-tax deductions
• Charitable donation deduction

Disabled voters deserve a voice

Excerpt from: Star News Online (click for full article)

 

A recent article published in The Atlantic identifies 30 states and the District of Columbia as having various levels of constitutional provision preventing people with disabilities from voting on Election Day. This in 2012, 22 years after the signing of the Americans with Disabilities Act. Fortunately, North Carolina voters need only be concerned, if in a residential facility, voting may be preempted by guardianship or other powers of attorney. In other words, if someone has been designated as unable to manage their own affairs voting may be an issue.

Yet, these provisions may be the least of the worries for voters across the state as we approach November 6th. Of much greater concern, the accessibility of polling places. A video found at http://www.eac.gov/making_polling_places_accessible/ tells how one can make an effort to make polling places barrier free. Such upgrades include making certain to designate accessible parking, to pointing the way to an accessible entrance, to ensuring that there is at least one accessible booth in every polling location.

Letter to the Editor: 'Disability' makes a difference

Excerpt from: Tampa Bay Online (click for full article)

 

As we navigate the rapids to Election Day, we are best reminded "one boat makes a difference." In the case of amendments to the Hillsborough County Charter, this year one word will make a critically important difference in our own lives and the lives of many of our friends and family members. That word is "disability."

"Amend Section 9.11 County Charter to Change the Term Physical Handicap to Disability," at the bottom of the ballot, must not be overlooked. This is a top-of-mind issue for the one in five of us who are managing a life-altering disability and do not think of ourselves as "handicapped." For us, this amendment is not just about changing a word — it's about changing the way we think and act as a society so there is a level playing field on which to pursue opportunities.

With the benefit of modern medicine, many of us are living a longer and richer life. Although we have suffered many tragic fatalities in the Iraq and Afghan wars, more of our American heroes in uniform are surviving the perils of the battlefield. These wounded and ill service members are forced into a difficult transition from the military back into the civilian community and are expected to carry on the "fight." More than eight in 10 people with life-altering disabilities are unemployed or underemployed. In a tough job market, persons with disabilities face some of life's biggest challenges and deserve parity with their able-bodied peers.

Eighty percent of us will experience at least six months with a disability before reaching 65. Beyond that now-extinct retirement age, percentages of persons with disabilities climb dramatically. So please, do not count yourself out. Vote "yes" on amending the Hillsborough charter, Section 9.11. This will make an important difference in your life, and the future of many to follow. You will undoubtedly agree that "good things happen when people have jobs," and persons with disabilities are no exception.

Voting Assistance for People with Vision Impairments

Excerpt from: WhatDisability.com (click for full article)

 

Many in the disabled community are preparing to cast their vote on election day. Unfortunately, part of their preparation includes getting ready for any obstacles they may face that may stop them from being able to vote.

The National Federation of the Blind announced a service they will provide that will help people with vision impairments overcome any obstacles they may face.

They will host an Election Day hotline that blind voters, poll workers, and voting rights advocates can call if problems arise with accessible voting technology or if other barriers prevent a blind voter from casting a private and independent ballot.

The Help America Vote Act (HAVA) requires that every polling place have at least one accessible voting machine available for every federal election so that voters with disabilities can cast a private and independent ballot. The hotline will be available on November 6, 2012, by calling 1-877-632-1940 from 7 a.m. EST to 7 p.m. PST. Individuals who have experience in the operation of accessible voting technology will be manning the hotline to provide assistance to blind voters, election officials, and voting rights advocates.

Scary Statistics: Romney's Plan Would Deny Coverage for 30-37 Million Americans

Excerpt from: Special Needs Truth (click for full post)

 

Governor Romney has said several times that he wants to turning Medicaid into a block grant program to the states. A good idea? Sure, if the goal is to take health insurance away from tens of millions of poor people, which is what a new report says it will do. Oh -- and it will also reduce benefits for other Medicaid recipients. And if Romney keeps his promise to repeal the Affordable Care Act, even more people will lose their insurance.

The study comes from the nonpartisan Kaiser Family Foundation's Commission on Medicaid and the Uninsured. By cutting Medicaid spending by $1.7 trillion between 2013 and 2022, the plan would save $810 billion -- by kicking tens of millions of poor people out of the program. And estimated 14.3 million to 20 million Americans would no longer be eligible. By repealing the Affordable Care Act, another 17 million people would not be able to get health insurance, according to the Congressional Budget Office.

The report says it could be much worse. "If there are no requirements that federal payments be matched by state contributions, states could reduce state spending more than federal spending and these enrollment estimates would be understated.” And state payments to hospitals and nursing homes could fall by more than 20 percent, likely resulting in reduced services for seniors in long-term care facilities. So in other words, the people most affected by these cuts would be people with disabilities, poor people, and seniors.

Sandy and the Election Storm!

I am the 47%

Excerpt from: Danine N. Spencer (click for full post)

 

I am the 47%.

I am on SSI and Medicaid.

I had a C4 spinal cord injury 7 years ago that paralyzed me from the neck down. Today, I can walk and talk, but am still not able to work.

As I continue to rebuild my life, I deserve a president who cares about me and my quality of life.

I will be voting Obama.

 

 

People with Disabilities are Now a Voting Bloc

Excerpt from: Danine N. Spencer (click for full post)

 

 

I love it: The Obama campaign is actively courting people with disabilities. This video debuted at last week’s National Forum on Disability Issues.

There is also a People with Disabilities for Obama group on the Obama-Biden campaign website. Additionally, searching BarackObama.com for “disability” returns ten pages – yes, pages – of results.

And the Romney campaign? If you search MittRomney.com for “disability”, you get eight links. Note I said eight “links”, not eight “pages”. None of the links are specifically about disability policy, although two posts are remarks to veterans’ groups.

One in five people in the United States have a disability. It is incredibly smart of the Obama campaign to recognize the power of this gigantic group of voters. Mitt Romney, ignore us at your peril.

Direct Care Workers Have Much at Stake in Health Care Debate

Excerpt from: Direct Care Alliance, Inc (click fro full article)

 

The Affordable Care Act (also known as the ACA, or Obamacare) has gained a great deal of attention recently, as President Barack Obama is committed to upholding the ACA and Governor Mitt Romney is committed to repealing it. As we reported earlier, the ACA will benefit hundreds of thousands of direct care workers by taking important steps to make health insurance affordable and accessible.

Over a million of our nation’s more than 4 million direct care workers are uninsured, making them nearly twice as likely as the average American to be without health insurance. Yet direct care workers need health care more than the average American, not less. They have one of the highest rates of on-the-job injuries, largely from lifting and transferring the people they care for. They also have higher than average rates of chronic conditions like asthma and diabetes, which become more serious when untreated.

The following components of the ACA would significantly affect direct care workers. 

Number of uninsured Americans

According to a Families USA analysis, Governor Romney’s plan, which includes repealing the ACA, would substantially increase the number of uninsured people across the U.S.

Medicaid

The ACA expands the federal minimum Medicaid eligibility level so more people have access to health care. The federal government, not states, will pay for most of this expansion.

Preventive care and out-of-pocket health care costs

The ACA requires insurers to provide preventive care with no co-pays. I

Women’s health care

The ACA prohibits higher premiums based on gender and eliminates deductibles and copays for preventive services such as mammograms.

Help for low-income families and individuals

The ACA provides subsidies for working families to help with the cost of private insurance.

Pre-existing conditions

The ACA protects against denial of coverage and forbids insurers to charge higher premiums for people with pre-existing conditions.

Coverage for children

The ACA allows children up to age 26 to be covered on their parents’ employer-provided insurance plans.

WSJ: Death Tax Resurrection

Excerpt from: TaxProf Blog (click for full post)

 

It's worse than that because the nonpartisan Tax Foundation calculates that the death tax is a long-term revenue loser. "Tax revenue is likely to increase" upon repeal of the tax, the Foundation finds. At least three other recent studies agree. How is this possible?

First, repeal or even a substantial reduction would be coupled with elimination of a provision called the "step-up basis at death" for calculating capital gains. ... There would be no grave-robber tax imposed at death, but all gains from a business or stocks or real estate would get taxed at the capital-gains rate (now 15%) when eventually sold by the heirs.

Abolishing the estate tax would also mean higher income-tax revenues. Under current law, billionaires like Warren Buffett and Bill Gates escape the tax by diverting their wealth into charitable foundations. But when income-generating assets are sheltered in this way, these foundations with a few exceptions don't pay tax on the future income from dividends, capital gains or interest. Eliminate the death tax and fewer people will shelter their money in foundations, meaning the money will continue to earn taxable income.

Most important, because the estate tax is a penalty on saving and capital investment, the economy grows more slowly over time. This is why so many industrialized nations, including Canada and Russia, have thrown out this tax as more trouble than it is worth....

The strongest case against the death tax is moral. ... Mr. Obama is so obsessed with redistributing income that he thinks it is unfair to leave behind a family business for the kids. What is truly unfair is when a family-owned enterprise has to be sold at auction to pay the death tax to the IRS.

Mitt Romney was right when he told a gathering in Van Meter, Iowa earlier this month that "we ought to kill the death tax. You paid for that farm once. You shouldn't have to pay for it again."