Why do the DISABLED have to pay taxes?

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

The American Healthcare Freedom Act - A Starting Point

This is a starting outline for a “Repeal & Replace” bill for the GOP to consider. I have included some things that I know some groups would want but this is just a starting point, so, don’t blow-up my feed about them. The amounts included for the TORT REFORM section are just a starting point to give them an idea of what I intended. Hopefully this will get to the right people to have some effect on the process.

 

SSGRichDAV

 

                                       The American Healthcare Freedom Act

An act to repeal and replace the ACA (Obama-Care).

 

1. The ACA is hereby REPEALED in its entirety.

 

2. This REPEAL is effective immediately when signed by the President of the United States with following exceptions:

 

     a. All currently issued health insurance plans will remain in force as long the consumer stays current on their premiums or until a new plan becomes available.

 

     b. States the expanded their Medicaid programs as outlined under the ACA will have the additional funds that have been provided reduced by 1/3 each year until at the end of three years they are terminated. This will reduce those states to an equivalent level of funding as provided to states that did not expand their Medicaid program.

 

3. Tort Reform – Medical malpractice court awards are hereby capped as follows:

 

     a. For loss of life – reimbursement of all medical costs and 3 to 5 million dollars on a sliding scale based on the age of deceased with the greater award going to the younger individuals.

 

     b. For loss of limb, eye, ear or other significant body part - reimbursement of all medical costs including any future costs directly related to the loss and any necessary reconstructive surgery to alleviate any grossly unsightly scaring and 1 million dollars for each part lost.

 

     c. For all other malpractice cases the award is capped at reimbursement of all medical costs and 1 million dollars.

 

4. No company that provides malpractice insurance is to have any financial ties to any company that provides health insurance coverage.

 

5. The HHS Secretary will establish a committee to analyze why the cost of healthcare (not the cost of insurance, but the cost of care itself) is so high and develop and recommend measures to drive down those costs. All aspects of medical care will be studied including but not limited to:

 

     a. Educational costs – Why does it cost so much to train medical personnel?

 

     b. Drug costs – Drugs should be priced at the actual cost of ingredients plus the cost of manufacture with a set surcharge to cover research and development costs. Look into requiring all drug companies to become not-for-profit organizations.

 

     c. Medical equipment, devices, prosthetics and supplies - All medical equipment, devices, prosthetics and supplies should be priced at cost of materials plus cost of manufacturing with a set surcharge to cover research and development. Look into requiring all such companies to become not-for-profit organizations.

 

     d. Costs of procedures – Procedures should be priced to cover actual expenses involved including labor with a set surcharge to cover the overhead of the facility it is performed in. Look into requiring all hospitals to become not-for-profit organizations.

 

     e. Emergent care – investigate requiring hospitals to establish a 2 stage emergency room/urgent care clinic arrangement where true emergent cases are handled and billed at appropriate rates, but, all non-emergent patients that seek care are treated and billed at normal “office visit” rate levels.

 

6. Any consumer may purchase any healthcare insurance plan they desire from any company in any state. States may require that plans sold in their state to their state citizens meet state requirements, but may not block citizens from purchasing plans out of state that do not meet those requirements.

 

7. No state shall require any healthcare insurance plan cover contraception related counselling, contraceptive drugs or devices, non-emergent abortions, sex reassignment therapy or surgeries or any other traditionally “ELECTIVE” procedures. They can require plans to cover psychiatric/psychological treatments for gender confused individuals. Gender confused individuals are defined as any individuals who believe that they are any gender other their biological gender as determined by their DNA or those who are sexually attracted to members of their own sex. Such treatment must be directed towards curing them of their confusion with goal of having them accept their biological gender and natural sexual purpose of procreation.