Glass Half Full
We now have a new administration
in Washington and regardless of your political leanings, there is
some good news for baby boomers - those who are retired and those
about to retire in a few years.
Taxes - One of Trump's tax
plans would have a single filer with an adjusted gross income (AGI)
of under $25,000 pay no taxes. A married couple filling jointly
could together have an AGI of under $50,000 and pay no taxes. This
would mean that seniors in low income tax brackets could possibly
be looking at tax-free income in retirement.
Revenue - Speaking of taxes,
just a 1% increase in employment would increase revenue substantially.
I love the idea of more young people contributing to the federal
budget. An increase in Social Security and Medicare revenue is good
for everyone. President Trump's focus on job growth is critical.
Protect Medicare - In total,
Obamacare raids Medicare by $716 billion from 2013 to 2022. Despite
Medicare facing a 75-year unfunded obligation of $37 trillion, Obamacare
uses the savings from the cuts in Medicare reimbursement to pay
for other provisions in Obamacare, not to help shore up Medicare's
finances. While we don't know what will replace Obamacare, let's
hope that the repeal will bring that money back to the Medicare
budget. If the reimbursement for doctors and hospitals falls any
further, we'll be driving 50 miles or more to find a Medicare facility.
Regulations - While building
regulations (permits, fees, etc.) are generally countywide or statewide,
the EPA (think environmental impact studies), is largely responsible
for the lack of sufficient new housing. Not only do we need more
home development to address a growing population, but we have a
critical shortage in senior housing (independent living, assisted
living, skilled nursing). If regulations were relaxed/removed, developers
would invest in all types of housing. I believe the new EPA leadership
will focus on making these changes.
In summary, I prefer to see that
the "glass is half full, not half empty" with regards
to the next 12 to 48 months. Stay positive.