Pre-Boomer Musings

Pre-boomers did not invent Social Security.  Most of us were not even born when the program came into being in 1935, and we had no say in congress’s decision to borrow from the fund to use the money for other purposes   We were busy with our families and careers when Medicare was instituted in 1965, and our tax contributions were used to help pay for the continuation of this program.

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Our generation saved for retirement, but we depend on both Social Security and Medicare to supplement the dollars we put away in order to help us make it through our remaining years.  Now, it seems as if we are considered a burden on society and benefits from both these programs will not be what were promised.

How could things go so terribly wrong?  Social Security cost of living adjustments are frozen for the next two years, but the prices of so many goods and services used by seniors continue to increase.  The government thinks it can cut hundreds of billions of dollars from Medicare yet claims this will not affect our benefits.  They must be using a different calculator than we pre-boomers, because nothing adds up for us.

Other taxes and fees could also take a bite out of our wallets.  Energy costs can be expected to increase substantially if the Cap and Trade bill is signed.  The goal is to reduce dependence on foreign oil and help in the greening of America by charging the country’s businesses for excessive energy usage.  These fees will be passed on to consumers in the way of higher prices, while China, India and other developing nations continue to pollute and extend their manufacturing cost advantages over the USA.

A Value Added Tax (VAT) is another possibility being considered to help the government recoup dollars it plans to spend in an effort to put all Americans on an equal footing.  But this is a regressive tax that will be a burden on the people who least can afford it.  Those of us on fixed incomes as well as the working poor will pay what is in effect a national sales tax on top off state and local taxes.  So our dollars won’t be able to buy as much tomorrow as they do today, which is far less than just a few years ago.

“Sin taxes” will reduce our disposable incomes even more.  These apply to seniors who smoke or drink alcohol, and there’s pressure to tax foods and beverages containing sugar.  You can bet the government won’t be stopping with these.  They need money and if we don’t deliver the tax revenues more dollars will have to be printed, which means inflation.  Since most pre-boomers can’t go out and earn more, we’re going to be put in the position of cutting back on the quality of our lives.  This is not acceptable.

So contact your representatives, and let them know your concerns.  If they don’t seem to understand the dilemma you’re facing, you better vote for someone who does.  Remember, pre-boomer may account for 30 percent of the vote in 2010.  Don’t waste this opportunity to be pro-active and make a difference in the way you are represented in your city, county, state and in Washington, DC.

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