Dear President Donald J. Trump,
I am writing to urge you to consider the following
legislative proposal. This proposal has
great possibilities for you to show how much we care about the disabled in
our society and upholds American values and principles.
Why do the DISABLED have to pay taxes?
First, haven’t they already suffered enough?
Second, their paying of taxes makes no sense because their
financial compensation comes from taxes.
In the
interest of full disclosure, I am one such individual.
Allow me to elaborate…
Several states such as Alabama and Montana exempt fully
disable veterans from property taxes.
Maine however only exempts the first $6,000 in
property value from being taxed (I have not seen many $6,000 houses in my
neighborhood). I would think that the
$6,000 figure should apply towards the actual tax assessed not towards the
value of the house, but that’s just me).
But, others still require them to continue to pay and pay and pay.
I know that all Social Security Disability Insurance
payments as well as Veteran’s Disability Compensation is exempt from both state
and federal income taxes (makes sense as why would you give it to them with one
hand just to take it back with the other…) But, why must they still pay
property, sales, excise, or any other tax for that matter? Isn’t that the same thing? Giving with one hand while taking back with
the other?
An example of how this can really harm these individuals is
with the property tax issue. As home
values in their area go up, so do their property taxes and that could force
them out of the home they love pushing them into Section 8 housing or some
other government subsidized housing situation placing a further burden on the
taxpayers.
I propose that both Federal and State legislatures pass
bills that exempt all individuals who have been determined to be TOTALLY
DISABLED by either the Social Security Administration or the Department of
Veterans Affairs (for Social Security they must show that they receive SSDI
payments and for the VA they would need to be able to produce a copy of their
“Total and Permanent” rating letter) from having to pay ANY TAXES. (See “Implementation” section below for how
this could work). Alternatively, just exempting them from 50% would still be a
tremendous help for these individuals who are on a fixed income and really have
no other options.
Reasons this should be considered:
1.
Financial Impact on the individual:
a.
Disabled individuals that cannot work must live
on a fixed income with the only hope of getting a raise being dependent on
Congress granting a Cost Of Living Allowance (COLA) increase once a year. Over
the last 10 years the COLA raises approved by congress average only 1.69% per year. Last years was only 0.3%. For Disabled
Veterans that gave them an extra $104.65 for the entire year.
b.
In my situation, just my property taxes
increased an average dollar amount of $182.75 per year over the same 10 years
so how can they say that the COLA covers the actual increases in the cost of
living?
c.
Additionally, disabled individuals often become
disabled earlier in life and the longer period that they are dependent on the
annual COLA compounds the problem as future COLAs become based on an underlying
benefit amount that has not been sufficiently increased.
d.
An example of how this effects the disabled can
be seen with the above property tax figures that show how quickly a disabled
person can be forced out of their home just because the COLA has not kept up
with the increases in property taxes, much less the increases in all other
areas of their finances due to inflation and due to the fact that, because
there are many things that they can no longer do, they are forced to pay others
to do them for them (such as snow removal, home repairs, vehicle repairs,
etc.).
2.
Emotional impact on the individual:
a.
The above financial examples illustrate what
kind of stress this situation can place on the disabled. It makes it even worse when it cause them to
have to ask for additional help.
b.
It also causes great anxiety as they see
themselves and their family’s budgets getting tighter and tighter every year
and have to contemplate possibly even losing their home just because they
cannot afford the tax increases.
c.
For Veterans, by nature proud and humble, the
impact can cause them to consider a final option that too many veterans are
being lost too.
3.
Social Security Disability Insurance (SSDI)
recipients are individual who CANNOT WORK and therefore cannot just go out and
earn more money to cover increasing taxes.
4.
100% Total and Permanent Disabled Veterans are
Patriots who also cannot work and who have not only already sacrificed much for
their country, but, are still suffering and sacrificing every day and will
continue to do so until the day they die.
5.
Common Sense also argues firmly in favor of this
proposal as illustrated below:
a.
All of the benefits, financial or in kind these
individuals receive, come from taxes collected by either the State or Federal
governments.
b.
Taxing these individuals just moves government
money from one place to the other.
c.
Taxing them places additional burdens on them
requiring them to have to seek additional taxpayer funded aid.
6.
Compassion:
Do we really want to further burden those in our society that are least
able to bear that burden?
Ok, so how would this work:
Implementation:
1.
Eligibility:
a.
The following classified individuals would be
eligible for the exemption:
i.
Social Security Disability Insurance (SSDI)
recipients.
ii.
Disabled Veterans classified in one of the
following categories:
1.
100% Service Connected Disabled.
2.
Compensated as 100% Service Connected Disabled
due to Individual Unemployability that have also received the designation of “Total
and Permanent (T&P)” (these veterans are classified as totally disabled
and unable to work due to the combination of their various disabilities and the
VA has also agreed that no further ratings reviews will ever be required).
2.
Logistics:
a.
Have the VA add a RED STAR to the corner of the VA
Identification Card they already issue to all Disabled Veterans for Veterans
who are compensated at the 100% level.
b.
Have the SSA add a RED STAR to the corner of the
Medicare Identification Card they already issue to SSDI recipients.
c.
Individuals then simply present these cards to
the taxing authority and all taxes are waived.
When presented at the register, the cashier simply presses the “Exempt”
key they now use for other tax exempt purchases.
3.
Financial impact on State and Federal
governments would be minimal as there are just not that many disabled
individuals in each community and the tax/mil rates could be easily adjusted to
make up for the small difference.
4.
Fraud Prevention: Anyone who claims the exemption when they are
not authorized to do so would be subject to the same penalties already in place
for tax fraud.
Well, there it is!
Short, simple and easily doable.
This one is a clear “no brainer” for the legislatures so let’s get this
done for the neediest and the most deserving among us.
Thank you for your time and consideration of my proposal
and, please, do not hesitate to respond back to me and discuss this further.
Sincerely;
Edward
Richardson
SSG(DV)
Berwick, ME
October 21,
2017