A Majority Worry About Higher Costs For Health Insurance

This chart was made from results of a recent Gallup Poll -- done between November 1st and 11th of a national sample of 1,037 adults, with a 4 point margin of error.

Republicans were surprised that health care was a big issue in the last election, and tried to reassure voters at the last minute. It didn't work, and the damage Republicans did to health insurance turned out to be one of the major reasons voters ousted them from power by flipping 40 seats in the House of Representatives.

A large percentage of the public (about 61%) say they are worried about the rising costs of their health insurance (and afraid of higher deductibles with that insurance). And a significant percentage (42%) are so worried about it that they also worry about having to do without any health insurance at all.

Obamacare didn't fix all the problems with our broken health care system, and costs of insurance and medical care was one problem it didn't fix. But the Republicans, in trying to abolish Obamacare, just made things worse. Their doing away with mandatory participation is a primary reason why insurance premiums are skyrocketing. Now those same Republicans want to cut money for Medicare and Medicaid.

That's dumb, and it will just continue to hurt them. They need to join Democrats and fix the medical system -- controlling costs and covering more people with insurance. And they need to get rid of their mean-spirited belief that health care is a product. It's not. It's a right that should be shared by all citizens.

70% Of Social Security Recipients Will Get No Raise In 2018

The chart above shows the cost-of-living increase in Social Security over the last decade. The adjustment for 2018 will be 2%. That's not enough to keep up with inflation (on items seniors spend the most on), but it's the largest increase since 2012.

But don't celebrate that tiny increase yet. That's because about 70% of all Social Security recipients will not see any raise at all on their monthly check. That's because the increase in the Medicare deduction taken out of their check will eat up all of the increase.

Here's how CNBC explains it:

Here's why: A so-called "hold harmless" legal provision has protected the majority of retirees from increased Medicare Part B premiums if it would reduce their Social Security benefits. It affects people whose premiums are deducted from their monthly Social Security check. (Note: New Medicare enrollees are not protected by the provision.)

Premiums for Part B, which primarily covers doctors' visits and other outpatient care, can change annually, as it is expected to fund about 25 percent of the the program's annual expected per-beneficiary spending. For 2017 the premium was $134, with higher earners paying more.

Yet because of the hold harmless provision, the actual amount paid by most Medicare recipients is about $109 monthly, research from the The Senior Citizens League shows.

So even if Part B premiums don't rise in 2018, the average retiree will see that extra $25 go toward paying the difference between their monthly Social Security check ($109) and the Part B cost ($134).

This means that 70% of Social Security recipients will fall further behind in 2018 (just like they have for the last five years -- as medicine, health care, rent, groceries, gas, clothing, and other costs rise while their check does not.

And it won't get any better for them in 2019. That's because the $500 billion cuts to Medicare (included in the GOP Tax cuts for the rich bill) will happen in that year. They can expect the Medicare deduction in their checks to again go up to help pay for the tax cuts for the rich.

The Republicans have once again shown they don't care about seniors (or anyone but the rich and corporations).

Trump/GOP Taking Tax Deductions Away From Middle Class

(This caricature of McConnell, Trump, and Ryan is by DonkeyHotey.)

Trump, and his congressional Republicans cohorts, promised a huge tax cut for the middle class. But the plan they have revealed does not do that. The biggest cuts go to the corporations and the richest people. They did double the regular deduction for an individual or family, but then they eliminated other deductions many in the middle class depend upon. This means some middle class people will get a small tax cut, others will pay the same as now, and some will actually have to pay more.

This is not surprising. The promise of a huge middle class tax cut was always a lie -- designed to allow them to give massive tax cuts to corporations and the rich. Here are some deductions, according to Forbes (written by Tony Nitti), that the middle class will lose:

#1: Divorce just got even more expensive. 

Under current law, alimony payments are deductible by the payor, and considered taxable income to the payee. And because you people are simply incapable of remaining faithful, there is a lot of alimony paid each year, about $10 billion to be exact.

The House bill eliminated the deduction for alimony. The change doesn't add much revenue, however, because the bill also makes alimony tax-free to the recipient. As a result, it raises only $8 billion over ten years, almost entirely from Larry King.

#2: Don't be in a rush to sell your house.

When you sell your home, provided you have owned and used the home as your primary residence for two of the prior five years, you may exclude up to $500,000 of the gain (if married, $250,000 if single).

The House bill would require that, in order to exclude the gain from a sale, you own and use the house as your primary residence for five of the prior eight years. In addition, you begin to lose the exemption as adjusted gross income (in a look-back period) exceeds $500,000 (if married, $250,000 if single).

#3: Don't get sick. Or move. Or go back to school. Or do anything, really. 

Taxpayers may deduct medical expenses incurred to mitigate, diagnose, treat a disease. Today's bill would eliminate the deduction for all medical expenses. This will prove particularly damaging to the elderly, many of whom have traditionally relied on the deduction for a portion of their nursing home care to wipe out any income they use to pay those expenses.

In addition, if you have to move for a new job, you generally may deduct the cost to transport your belongings to your new home. Generally, your new gig must be at least 50 miles farther from your old house than your old gig. In other words, your commute, had you not moved, would have grown by 50 miles.

Today's bill will eliminate the moving deduction. But don't let a lost tax deduction motivate you to hire a low-budget moving company. My wife and I tried that once and ended up engaging the services of what I can only assume was the Russian mob. Needless to say, things did not go well, at least until I paid three grand to get my stuff out of a storage locker in Kansas.

Finally, if you're an employee who was thinking of going back to school for a graduate degree in your particular business field, you may want to think twice. Under current law, your employer can pay up to $5,250 of your tuition, books, etc. . . and you don't have to recognize the payment as income. Alternatively, if your employer won't pay for you to go to school, you may deduct any unreimbursed educational expenses, provided the education simply maintains or improves your existing skills, and doesn't prepare or qualify you for a new trade or business.

Today's bill would eliminate BOTH the ability to receive tax-free educational assistance from your employer and the unreimbursed employee expense for professional education.  So if the employer pays, you're recognizing taxable income, and if you pay, you get no deduction. I guess it makes sense for the GOP to discourage education; after all, if the country wises up, what happens to Fox News? HI-YO!

#4: Every day will be "Bring your kid to work day!" 

Similar to educational assistance, an employer may pay directly or reimburse up to $5,000 for an employee's dependent care expenses, without the employee having to recognize the income. This allows the employee to seek care for a child under 13 on a tax-free basis.

Well, get ready to spend considerably more quality time with Junior, because today's bill would eliminate the exclusion. As a result, any amount the employer pays on your behalf or reimburses you is taxable income.

#5: You didn't think it was possible, but somehow your student loans just became a BIGGER hassle. 

Taxpayers can deduct -- up to certain limits -- the interest paid on student loans. Even better, the deduction is not an itemized deduction, so every taxpayer is eligible, though the deductions do disappear as income exceeds fairly moderate thresholds.

The House bill would eliminate the deduction for student loan interest, leaving you without even a tax benefit to show for that ill-advised philosophy degree.

#6: Time to fire your tax preparer (note: do not fire your tax preparer).

Nobody likes their tax preparer. Trust me, I know.  I'm one of them AND I'm surrounded by them all day. We're the worst. But at least in the past, you could stomach your interactions with people like me because you knew that every penny you paid me was tax-deductible.

Well, no more...the House bill eliminates the deduction for tax prep fees. But don't let that discourage you from offering up a healthy tip. I've got kids to feed.