Super Committee Cuts Could Impact Seniors
Unless you have been living under the proverbial rock you are aware of the fact that the powers that be in Washington are consumed with the matter of the federal deficit. A while back a deal was struck to raise the debt ceiling so that the government could remain operable. This agreement included the appointment of a congressional committee that must come up with a plan to reduce the federal debt by $1.5 trillion over the next 10 years.
They are required to present the plan by November 23, and then it must be voted on by December 23.
The only way that you can reduce the debt without raising revenue, which many lawmakers are against, is to decrease spending. Some people like to believe that there are countless unnecessary areas that could be easily cut without doing any harm, but unfortunately this is really not the case when you examine the pie chart.
Over a third of the spending that we do assists senior citizens through Medicare, Social Security, and Medicaid. And the fact of the matter is that since the baby boomers are reaching retirement age large numbers of people are becoming eligible for these programs every day.
It would be difficult to impossible to significantly reduce the federal debt through spending cuts alone without addressing these popular entitlement programs for seniors. Various ways of cutting them have been proposed, and one of them would be to simply raise the age at which seniors can apply for Medicare and/or Social Security.
At the present time Social Security is not going to be enough to provide sufficient income for many of its recipients, and Medicare does not pay for everything even as it stands right now. These are without question challenging times for many people who are planning for retirement and it will be interesting to see how the decisions of the super committee impact senior citizens.
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Experienced estate planning attorneys Sarasota FL of the Co-Executor PLLC offers estate planning and business planning resources to residents of Sarasota FL.
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