The “Fiscal Cliff”- If No Agreement is Made, What Does it Mean for Seniors?

As lawmakers left the Capitol for Christmas break, efforts to thwart the year-end “Fiscal Cliff” were in disarray.  If negotiations between Obama and Congress collapse completely, 2013 looks like a rocky year for seniors and all Americans. The following could happen:

  • Taxes would jump $2,400 on average for families with incomes of $50,000 to $75,000.  Because consumers would get less of their paychecks to spend, businesses and jobs would suffer.
  • Americans would feel cuts in government services.  Note: A few areas, such as Social Security benefits, Veterans Affairs and some programs for the poor, are exempt.
  • Social Security recipients might see their checks grow more slowly.  Obama and Republican leaders want to change how the cost-of-living adjustments are calculated.  This would mean smaller checks over the years for retirees who get Social Security, veterans’ benefits or government pensions.

If Washington bypassed the “Fiscal Cliff,” the next crisis would be when the government reaches a $16.4 trillion ceiling on the amount of money it can borrow. This could happen as early as February or March 2013.  Time for deal-making is short, with less than a week to vote on a compromise before year’s end.  Read the Huffington Post article for more details.

With the Fiscal Cliff looming, change can affect laws and regulations affecting seniors.  We here at the Fairfax Elder Law Firm of Evan H. Farr, P.C are here to help you plan for the protections you want.  Please call us at 703-691-1888 to learn more about how we can help you plan for your future.

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About Evan H Farr, CELA, CAP

Evan H. Farr is a 4-time Best-Selling author in the field of Elder Law and Estate Planning. In addition to being one of approximately 500 Certified Elder Law Attorneys in the Country, Evan is one of approximately 100 members of the Council of Advanced Practitioners of the National Academy of Elder Law Attorneys and is a Charter Member of the Academy of Special Needs Planners.

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