When does the government’s plan to pay off the public pensions begin?
A lot of people were wondering when the public pension debt would be paid off.
The federal government is now expected to pay down a massive $9.8 trillion in unfunded liabilities, which means it’s time to make some decisions on when that debt will be paid.
A few things have already been decided, but the first big step is the $2 trillion pension plan.
It is estimated that the current $7.2 trillion federal pension plan will run out of money by 2036, and the federal government will have to begin paying off the debt to the public by 2024.
For the rest of this post, I’m going to focus on the most important questions to ask about the federal pension debt.
What does the federal plan do?
The federal plan includes several provisions, such as: A $2.4 trillion reduction in the Medicare prescription drug benefit, which was already reduced by the Affordable Care Act.
This reduces the total federal benefits available for Medicare to $2,600 per year, or $200 per beneficiary, per enrollee.
Reduces payments to hospitals by $400 billion over 10 years, but allows them to continue to pay hospitals a premium for using the Medicare Advantage program.
Provides $3.3 trillion in tax cuts to the wealthy, mostly through a $1.3 billion increase in the mortgage interest deduction.
Eliminates taxes on investment income and allows taxpayers to deduct up to $10,000 in itemized deductions, such a mortgage interest, medical expenses, or a business expense.
Increases the tax deduction for state and local governments from $5,000 to $50,000 per household, but only for certain types of income.
Taxes on investments to $25,000, but increases taxes on the stock market to $100,000 and on the value of corporate stock to $250,000.
Makes changes to the retirement system, including lowering the eligibility age from 67 to 65 and making the tax on investment returns subject to the cap on the capital gains tax.
Restores the estate tax exemption for married couples.
Repeals the alternative minimum tax, which has been in place since 1977.
Changes the way retirement plans are set up so that the tax rates are higher for people making more than $1 million.
Ends tax deductions for employer-provided health insurance, including prescription drugs.
Establishes a new tax credit of $5 for everyone making over $1,000 a year.
Extends the standard deduction to $12,000 for families and $24,000 as a benefit for individuals and couples.
Changes the definition of a business.
Raises the top marginal tax rate from 35% to 39.6%.
Changes how the child tax credit is calculated.
Require that tax returns include a copy of the business you are reporting.
Expands the child benefit and the child credit for married parents.
Treats investments as if they were capital assets for tax purposes, increasing the value added tax credit from 10% to 20%.
Allows the IRS to seize money from investors in retirement accounts, including 401(k) plans, by giving the IRS authority to seize the money.
Revises the way the tax code treats investment returns and other tax deductions, including a $2 million exclusion for charitable contributions and a $10 million exclusion on state and municipal property taxes.
Requires a minimum of $10.25 million in savings for people who receive unemployment compensation.
Allows certain taxpayers to claim tax deductions on their personal income taxes that were previously excluded.
Includes a $3 billion tax credit for the elderly.
Prevents the tax burden on businesses that make fewer than $5 billion a year from being passed on to consumers.
Prohibits the federal debt from growing larger than the $10 trillion deficit.
Amends the Social Security program to extend benefits for the first three years of the plan and extend the benefits through 2024.
Source Reddit /i/image/3B9A0C4E/original/1/1B9B0C8E/default/1The most important part of the federal proposal is a $7 trillion reduction to the Medicare program.
Under the current Medicare program, most people who retire don’t receive benefits.
There are a few different ways the government can change that.
The first is to cut the program in half.
If you’re not going to work, the government could let you take a pay cut.
You could get a job through a job training program, which would be much more affordable.
Instead of having to rely on the government for healthcare, you could work through a company that pays you a lower wage, which might save you money in the long run.
Or you could get some form of public assistance from the government, which could