| Taxes
Hit Seniors Twice as Hard |
| Remember the old saying, "You get what you pay for?" Truth
is, not always. An example of this is taking place right now
as our political leaders in Richmond and Fairfax are cooking
up plans to pay for state and local budget deficits on the
backs of seniors by raising their income taxes and cutting
services. |
| Let's look at the tax issue first. |
| I recently attended a luncheon meeting of the Dulles Chapter
of the National Association of Retired Federal Employees (NARFE)
where taxes were discussed by State Sen. Bill Mims (R-Leesburg).
|
| Under the present Virginia tax code, each filer aged 62-64
may deduct $6,000 and each filer 65 or over may deduct $12,000
from his federal adjusted gross income to determine his Virginia
adjusted gross income. |
| Sen. Mims reported that these tax deductions have been under
study since 1999 when the Viginia General Assembly appointed
a commission to examine the state's tax structure and its
impact on Virginia state and local governments. |
| Recommendations of various work groups would eliminate all
individual income tax deductions, exclusions and tax credits
with the exception of the current deduction for Social Security
income. |
| In addition, tax rates would become more progressive, with
the current maximum 5.75 percent rising to 6.25 percent. |
| The recommended tax rates and brackets are intended to be
revenue-neutral as currently generated from Virginia's individual
income tax. |
| Sen. Mims acknowledged the seriousness of these recommendations
which would hit older taxpayers especially hard, and reaffirmed
his support for seniors. |
| He emphasized that these are only recommendations and doubted
if the General Assembly would act on the proposals in 2003
or in the near future. |
| He did believe, however, that tax reform is needed in view
of the state's serious budget deficit. |
| Sen. Mims' views pretty well mirror those of State Sen.
Janet Howell (D-Reston) when I spoke with her staff about
this issue last year. |
| Del. Thomas Davis Rust (R-Herndon) reported that he is sponsoring
legislation aimed at getting a more equitable distribution
of tax revenues for Northern Virginia. Sen. Mims is a co-sponsor. |
| During the question and comment period, Shirley Vaughn,
second vice president and legislative chairman, put a face
on the impact of eliminating senior deductions by reporting
that loss of that benefit would double her state tax burden. |
| Chapter president Bob Simon (not to be confused with Reston's
founder of the same name) noted in the chapter newsletter
that the tax commission appointed by the General Assembly
didn't include any seniors, despite the fact that there are
some 800,000 of them living in Virginia. |
| He also said that the commission's report won't be presented
to the General Assembly until after Nov. 4, 2003, so as "...
not to interfere with the election." |
| A cynic might well comment that this is mighty considerate
of incumbent politicos! |
| Let's move on to the second senior whammy: reduced state
and county services. |
| This is disturbing, but hardly surprising. |
| Barely a day goes by without a dispatch from Gov. Warner
announcing program cuts because of budget deficits. In all
fairness, a large part of this has been caused by his predecessor's
automobile tax cut and the loss of revenues due to the economic
slowdown. |
| Similar bad budget news comes from Fairfax County and shows
the interdependent relationship existing between funding state
and local programs. |
| When Richmond sneezes, Fairfax government catches a cold.
Even worse, when Richmond catches a cold, Fairfax develops
pneumonia. |
| An example of this is Fairfax County's mental health programs
which depend on the state to provide 30 percent of the funds
needed for a broad band of assistance to all age groups. |
| Specific data isn't available on seniors, but it seems logical
to assume that with the expected increase in the number of
seniors and the vulnerability of the aged to become mentally
ill, a growing number of them will be negatively impacted
by reductions in mental health programs. |
| Despite these growing needs, next year the state is targeting
a 10 percent cut of $1.3 million, and the county reduction
will be $3.2 million, for a total of $4.5 million in cuts
to mental health services. |
| It worsens in 2004 when these programs are to be cut an
additional $5.2 million. |
| These aren't mere numbers spun out by budgetary bean counters
with green eyeshades and no heart. |
| They portray a severe crisis looming over the Fairfax-Falls
Church mental health system, with tragic consequences for
the mentally ill. |
| The somber reality is these cuts will reduce assistance
for adults needing day treatment and psychosocial support
to be able to get and keep jobs and live independently. |
| Also, a proposed cut of $143,000 would result in closure
of emergency services at the Northwest Center for Community
Mental Health. |
| To minimize negative impacts of the proposed budget cuts,
the Advisory Board to the Northwest Center, located in Reston
and led by Glenn Kamber, has sent letters to state and county
political leaders appealing for the restoration of funds for
the highest priority programs. |
| On a constructive note, the advisory board also offered
to participate in a comprehensive reassessment of current
state and county health systems. |
| In reporting on these issues, I want to confess a twofold
purpose. |
| The first is obviously to keep seniors informed on matters
that affect them. My second objective is broader. |
| It's to encourage all persons, regardless of their age and
political persuasion, to get involved in community affairs.
|
| Our political leaders at all levels sincerely welcome your
comments. |
| They certainly get plenty of advice from paid lobbyists
but they need your input to gain a balanced view of issues
they have to consider. |
| If you're concerned, and I hope you are even a little bit
angry, "quitcherbeefin" and phone, write or e-mail the folks
in the White House, state house and county house (otherwise
known as the Fairfax Government Center). |
| Another message I'd like to leave with you in this season
of goodwill, consider volunteering. |
| There are many opportunities to offer your skills and knowledge
to help those less fortunate. |
| Just call Sue Boucher at 703-968-4000 to volunteer at the
Northwest Center for Community Mental Health, or any other
public service organization of your choice. You'll feel better
while doing good. |
| See you all next year. |
