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  • Legislative Update April 2012 Advisor

    Viral Outbreaks Related to Planes .There is one trend that of particular concern for all consumers. "There's a relentless march upward in the cost of foods, especially sources of protein, (meats, poultry, seafood), dairy, as well as fruits and vegetables, Johnson says. Some categories of food prices especially for fresh fruits and vegetables have climbed in recent years due to widespread damage from severe weather and wild fires. "COVID-19 simply added another layer of disaster cost due to loss of restaurant and school lunch markets, labor shortages for growing, harvesting and food processing, and transportation disruptions," Johnson says. "This is the year to plant a vegetable garden," Johnson says. .As a result of the new rule, consumers will have to pay more for their prescriptions, as a growing number of people rely on the programs offered by drug makers to lower their copays. … Continued

  • Congressional Corner Protecting Social Security For Retirees And Future Generations

    The President ordered a payroll tax deferral, not a cut, meaning the taxes will not be collected for a while but they will still be due at a later date. However, some observers have suggested that rather than give employees the additional money and then try to collect it back from them at the end of the year, employers will simply hold onto the money so that the employees would never see it in their paychecks. .The President's proposal is likely to increase the already-escalating tension between the drug industry and his administration. The new order comes on the heels of the four executive orders he issued regarding drug prices two weeks ago. .Many Members of Congress who have been long-time friends to seniors and those who have introduced key bills for The Senior Citizens League (TSCL) fared well in Tuesday's elections. Rep. Peter DeFazio (OR-4) (sponsor of the CPI-E Act) won re-election, as did Rep. Linda Sanchez (CA-38) (sponsor of the Strengthening Social Security Act), Rep. Rodney Davis (IL-13) (sponsor of the Social Security Fairness Act), and Rep. Walter Jones (NC-3) (sponsor of the Social Security Guarantee Act). … Continued

If you start benefits sooner than age 66 and continue to work, you are subject to Social Security earnings restriction rules. Earn more than the annual exempt amount and Social Security will withhold some or all of your earnings. In addition, once you start benefits, your income may subject a portion of your Social Security benefits to tax. .Senate Minority Leader Harry Reid (NV) told reporters on Wednesday, "The CR is not done; it's a work in progress … This isn't going to be wrapped up in the next couple hours, that's for sure." In addition, Senator John Thune (SD) said, "I think [Majority Leader McConnell's] goal all along has been to try and get something considered by the end of this week, to try and wrap things up. But I'll just tell you, my own view is that, based on past experience, I don't think we'll get there this week. I think this probably spills into next week." .Have you calculated how much you might need? How much income would be lost if you or your spouse were to pass away? There's a loss of retirement income, particularly when the higher benefit spouse dies. The couple's Social Security benefit is cut by one-third to one-half, and a couple's private pension benefit (if any) is either cut in half, or disappears completely if you have not opted for a joint-and survivor annuity. If you have a large estate, thriving business, valuable real estate and savings, would there be estate taxes to pay? Some families choose to keep life insurance because the death benefits are tax free to heirs, and can give the surviving spouse a financial cushion. .According to the 2020 Social Security Trustees report, which does not include estimates of the impact of the coronavirus, Social Security is expected to receive about 3.3 billion in payroll tax revenues this year. "That estimate is higher than it actually will be, since it was based on just a 5 percent unemployment rate," Johnson notes. "Currently the unemployment numbers are roughly four times higher than that," she points out. In addition, the Coronavirus Aid, Relief and Economic Security Act (CARES Act), allows employers to defer the employer portion of payroll taxes in 2020 for up to two years. .Earlier this year, a Congressional report referred to the AARP as a "massive for-profit enterprise" whose financial structure "conflicts with its legal requirements to ‘primarily operate to promote the common good and social welfare of a community of people.'" .TSCL's surveys have found that moving Medicare Part D to a pricing system that has similarities with Medicaid has strong support among older adults. Seventy percent of those who participated in our 2019 Senior Survey support allowing Medicare to negotiate prices for prescription drugs using a similar system to Medicaid's. .According to the results, TSCL's members and supporters would prefer to see a more permanent solution. Forty-eight percent of respondents said the DI program should tighten its eligibility requirements and conduct more continuing disability reviews to reduce fraud, and 51 percent said high wage earners should be required to pay Social Security taxes on all of their incomes. .Gathering support for the legislation, which would cap drug costs for Medicare beneficiaries and force drug manufacturers to provide Medicare inflation rebates, has been an uphill battle for Grassley over the past year. .The opinions expressed in "Congressional Corner" reflect the views of the writer and are not necessarily those of TSCL.