Tag: "baby boomers"

The High Marginal Cost of the Social Security Benefits Tax

In yesterday’s Dallas Morning News, financial columnist Scott Burns discussed the hard-hitting Social Security benefits tax.  Using Turbo-Tax, he demonstrates how middle-income seniors (those earning $41,343 to $77,343) are hit by the tax.  Since the income thresholds are not adjusted for inflation, but Social Security benefits are, more seniors will have pay the tax as […]

Seniors Are in Debt, But Not as Bad Off as They Could Be

Two year ago, I produced a piece on how baby boomers spend their money.  I wanted to find out why many of them were not nearly prepared for retirement.   This time around, I wanted to find out how senior citizens were spending their money.  A lot has changed compared to the same age group just 20 years ago: Today’s seniors (age […]

Retiring Soon? Pay off the House First

In 2011, the first of some 78 million baby boomers began retirement.  By the year 2031, the last year of the boomer generation will reach their full retirement age (67).  Many will consider moving to a less costly, low-tax state in an effort to reduce their living expenses.  However, more than half of those on […]

Retirement and Dependency (In Reverse)

A CNN Money article highlighted a recent survey examining worldwide retirement trends.  The survey, conducted by HSBC, found that 18 percent of Americans expect never to retire.  This is only slightly lower than the 19 percent of British who expect never to retire, but much higher than the global average of 12 percent. When I first read […]

EPI States the Obvious in a New Report About Retirement Savings

A new report by the Economic Policy Institute rehashes what many already know about retirement savers.  This is no surprise coming from an organization that has opposed self-savings initiatives and has instead supported the entitlement status quo.  The EPI’s report shocks and awes with charts and graphs showing the savings disparities between rich and poor, black […]

Paying People to Buy; Punishing Them for Saving

Today the NCPA featured a report summary in its Daily Policy Digest on how taxing capital penalizes saving.   The report, by Alan Viard of the American Enterprise Institute, provides a clear example of how even if the tax rates on labor income and saving are the same, the saver still pays a greater effective tax rate […]

Rich or Simply Frugal?

There is always a target for bad tax policy, and these days it seems to be the rich.  Every scheme designed to raise tax revenue is usually based on taxing the rich more, taxing the poor less, and generally redistributing wealth so that society is fair.  Sadly, however, the non-wealthy but frugal and hard-working citizen often […]

Are Millennials Ready for Social Security Reform?

Government is very good at crowding out private sector activities.  When government borrows, it can cause interest rates to rise and crowd out more productive private sector borrowing.  When government expands welfare programs to help the hungry and homeless, the effect is the crowding out of individual giving to more efficient private-sector programs.  And decades […]

Reforming Social Security: The Case for Progressive Price Indexing

best antivirus software for mac p>In light of all of the worrying about sequestration, entitlement reform – of course – goes undiscussed.  While trimming around the edges of discretionary spending has sent people into a panic, the $100 billion in cuts are a drop in the bucket compared to the growing expenditures of the mandatory spending programs […]

Worse than I Imagined (Part II): Medicare

When I retired, Medicare became my primary health insurance, fully covered by American taxpayers (and federal debt-holders), while Anthem/Blue Cross became my secondary health insurance, fully covered by the University of California.  I will never have to spend a nickel of my Social Security benefits or inflation-adjusted defined retirement income on my health insurance. But […]