Tax increases and senior citizens

Will raising taxes hurt the economy? Depending on which economist you follow the answer is yes or no. The idea seems simple that if you take more from a person in the form of taxes, they will have less discretionary spending ability. Of course, a true millionaire or billionaire may have substantial ability to maintain his spending in almost any scenario.

However, since the taxes we are talking about raising and have already raised apply to higher income folks far below the millionaire category there is little doubt less spending will occur. This is especially true for retirees on the border of the current definition of “wealthy.” Anyone on a fixed income will think twice about spending and indeed may not be able to maintain his current lifestyle as they see Medicare costs rise, taxes increase and income remain fixed. As the income point where higher taxes takes place remains fixed more and more seniors will be affected. To make matters worse, many seniors are struggling with low-interest rates on their CDs.