The Spark

“The emancipation of the working class will only be achieved by the working class itself.” — Karl Marx

Tax Cuts Against the Elderly

Nov 13, 2017

Cuts to 401(k) Tax Deferral – Deferred?

According to Donald Trump, the proposal to limit several tax-deferral provisions for 401(k)’s into the future is “off the table.”

But members of the House Ways and Means Committee are retaining the possibility of reintroducing it later this year if they can’t come up with more tax dollars to plug deficits caused by giveaways to the corporations and the wealthy.

Attacks on the Elderly

A new attack was added to the tax bill which penalizes the elderly and especially those with crushing nursing home debt. Today’s tax provisions allow some deductions of medical expenses for elders who spend 10 percent of their income on health care costs.

Because it is only available to those who itemize, the deduction is not claimed by large sections of the population. But 3/4 of those using it are 50 or older and 70 percent have incomes below $75,000. It is one of the only protections against the astronomical cost of long term care.