“Fiscal Cliff” legislation – what does it mean to you?
Last month, I discussed the tax rate changes and the estate tax exemptions under the American Taxpayer Relief Act of 2012. You should also be aware that the payroll tax holiday will not be extended meaning that the payroll tax rates will be going back up to pre-2011 levels of 6.2% (yes, that means less money in your paycheck).
One important provision in the legislation is the funding for programs under the Older Americans Act. This means that the Area Agencies on Aging, as well as the Aging And Disability Resource Centers, will receive additional funds. Medicare State Health Insurance programs will also receive additional funding in 2013.
One of the sad things about this legislation is that it repeals the CLASS Act. For a very good explanation of what the CLASS Act was, see this article by the Kaiser Family Foundation on the Health Care Reform and the CLASS Act. Once again, the working class are being treated like they do not matter, but apparently, the repeal of this act was a concession made by President Obama in order to have the Republicans agree to raise tax rates on the wealthiest Americans.
Find out more about what the Fiscal Cliff legislation means to elderly Americans by reading this article from the The National Senior Citizen’s Law Center, and to small business owners by reading this Forbes magazine article.
Laurie Ohall is a board certified Elder Law attorney with license to practice in both Florida and Ohio. For more information about planning documents, please contact the Brandon, FL Estate Planning Offices of Laurie Ohall today.
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