1. Depress Interest Income: Interest rates have been held unnaturally low (by the Fed) for a very, very long time. Thus any money that senior citizens have in safe places like savings accounts, money market funds, and even most bonds, earns very, very little interest—between 0.3% and 2%.
2. Draining Remaining Social Security Funds: In his desire to show some economic growth and “buy votes” Obama created the “Payroll Tax Holiday,” which was supposed to be for a short time—like 6 months—because reducing the employee’s portion of payroll taxes by 2% takes that money directly out of what is used to fund Social Security. And now he has “gallantly” decided to do it again—for a year this time. This further drains a Social Security System which the president has refused to “fix and fund,” and continues to ignore as it becomes more and more insolvent.
But that’s not all. There’s more. Of course these are all part of the President’s grand plan to keep the (lukewarm) recovery going artificially until he can be reelected to a second term.
3. Dry Up Dividends, Gut Capital Gains: Obama’s latest tax proposal includes doubling the tax rate on dividends and capital gains, which is his way of paying for the irresponsible spending that is creating $5 trillion in deficits just four years. Every year Obama has been in office spending has exceeded revenue by more than a trillion dollars. The only way to over that is with tax increases, and while he talks about taxing the rich—a part of the taxes involved doubling the tax rate on dividends and capital gains. These two of the primary sources of retirement income for seniors, will be taxed more heavily and thus less desirable for companies to pay dividends.
4. New Taxes Hidden in Obamacare: There are hidden surprises in Obamacare—the massive health care bill that was supposed to fix everything—but doesn’t. The most notable one is a 3.8% tax on “unearned income,” which includes dividends, interest, and proceeds from the sale of a home (which many seniors are downsizing, and would use as a source of assets for retirement income.
5. Reduced Funding in Medicare and Rationing Health Care: This one might help seniors by shortening the time they’d have to endure the others, because part of the economic justification of Obamacare was to cut Medicare benefits by $500 billion over a period of years. How? By rationing health care—and refusing to pay for medical expenses incurred by people whose lives were nearing the end anyway. Medicare is already insolvent, and President Obama has not done anything to try fixing it—except take more money away from it.