New Tax in January ~ No one seems to know about this........
This is bad! Really, really bad!!!!!!!!! Be sure to read this and check out the link at the bottom of the page.
CLICK ON THE LINK AT BOTTOM OF EMAIL!!!!!!!!!!
I just received a lengthy e-mail about a new tax few know about. Rather than forward the entire message I will condense it, but recommend you check out the link at the bottom to read the Washington Times editorial.
This will affect most of you because it is a payroll deduction, so you might also want to forward it to your kids or young friends so they can be prepared also. $150 to $250 per month is not chump change.
We will all be taxed $150-$250 PER MONTH beginning in 2011 for the NEW Community Living Assistance Services and Support Act (CLASS Act) that was added to the Reconciliation Bill on Friday night, Mar 19, 2010, before Congress voted on Sunday, Mar. 21, 2010. It will help pay for long-term home-care for the elderly.
In January of 2011, the government will start taking between $150-$250 out of our paychecks every month. ALL of us will be taxed on this one rich or poor, everyone except people who don't have a job. If you have a job and get a pay check, the government will take this tax from you.
And there's more to this surprise! The program won't begin for five years, and they don't expect to pay out anything for at least 10 years. So we get a head start on paying for it. Isn't that great? The government will take our money and put it in their savings account for at least 10 years, and then they will start giving it to other people.
The CLASS ACT, (isn't that a great name for it?) was apparently a pet project of the late Sen. Ted Kennedy, who was never able to get support for it because it was just to costly. What a wonderful tribute to Senator Kennedy! I know he would be so proud of Nancy for getting this done for him.
http://www.washingtontimes.com/news/2010/apr/01/robbing-peter-to-pay-pauls-health-care/
1 comment:
The CLASS Act's $50 per day "average benefit" will only cover a small portion of the $75,000+ per year most Americans pay for in-home care. Most people who want to protect their savings will still need to purchase long-term care insurance.
One of the biggest problems we face is that most Americans still think that Medicare or their medical insurance covers the cost of long term care.
The CLASS Act addresses this problem by making a very clear statement: You have to pay for your own long term care. You either have to pay for your own long term care by using your savings, the $50 per day CLASS Act benefit, long term care insurance, or a combination of these.
Most of the ten million Americans who own long term care insurance, own it because they've seen friends or family have to spend down their assets before qualifying for Medicaid. The CLASS Act will help alert the rest of the country to the fact that they need to financially plan for their future long term care needs.
There are 2 reasons the projected premiums for the CLASS Act are much higher than a comparable long term care insurance policy.
1) Anyone who is working (even just part-time) can enroll in the CLASS Act regardless of their health history. Enrollees with severe diabetes or crippling arthritis will pay the same amount for the CLASS Act benefit as those who are in perfect health.
2) Those who earn less than the federal poverty level will be automatically enrolled in the CLASS Act for only $5 per month (unless they opt-out). Their premiums are being subsidized by the rest of the enrollees.
Many of the leading long-term care insurance policies today can pay family caregivers. And many even offer a refund of premiums paid upon death.
Scott A. Olson
www.LTCInsuranceShopper.com
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