Congressman Cohen Pushes Tax Cuts for Seniors
In his “Comprehensive Tax Policy Plan for America,” (available at https://change.gov/agenda/taxes_agenda/) President-elect Barack Obama stated that it will be his administration’s goal to “[eliminate] the need for millions of senior citizens to file tax forms, and [enable] 40 million middle-class Americans to do their own taxes in less than five minutes without an accountant.” This innovative legislative proposal will go a long way to realizing this goal while giving millions of Americans living off retirement benefits much-needed tax relief. Congressman Cohen has pledged to work with the new administration and leaders in Congress to pass this important bill.
“This legislation is an important first step in the economic recovery,” said Congressman Cohen. “These taxes disproportionately burden seniors because much of their retirement income derives from investments in capital assets, such as stocks or bonds. This exemption will put money back into the pockets of those who need it and simplify the tax code immensely. I believe that this plan will help advance the agenda of President-elect Obama, and I look forward to working with him and my colleagues in the House to enact this much-needed relief.”
Capital gains realizations clearly increase with age. According to the IRS and the Tax Foundation, some 30.2 percent of taxpayers between age 65 and 74 claim capital gains income, while 27.6 percent of taxpayers over age 75 have capital gains income. The percentage of taxpayers over age 65 with capital gains income is higher than any other age group, and is more than twice the national average of 12.9 percent. As the baby-boom generation continues to age, the demographic balance of capital gains earners will continue to shift dramatically up the age scale.
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Marilyn Dillihay, Press Secretary, 202-225-3265
Charlie Gerber, Communications Assistant, 202-225-3265