Homestead tax credit will not be applied for May 1 tax bills
""The Homestead credit is a popular property tax relief program for about 580,000 seniors, disabled or low-income homeowners. The state treasurer said in a news release the state will not fund credits that were to be applied to property owners’ May 1 tax bills. "
Due to slowdown in tax collections in response to the coronavirus.
Ijay thank god the pensions remain!! People that worked for the deserve it. Just like the poor get food stamps etc. and the wealthy get tax loopholes.. The big difference is these people worked for it!!!!!!!!! It’s bad enough the politicians robbed and under funded the pension system.. If you have a gripe about the pension just remember that the state politicians created this mess!!!!!
It was created by the unions first, a way to increase total compensation by kicking the (pension) can down the road.
What about private 401Ks taking hits, and then you expect them to bail out your pensions, who bails them out?
That would be the Pension Benefit Guarantee Corporation, a quasi govt. agency, a pension insurance organization that all pensions contribute to. While they support routine failures, no, they can’t support a giant crash.
401’s are an accountant’s discovered loophole intended to provide extra benefits to upper mgt. but then repurposed to serve the common man when he foolishly demanded to control his own financial destiny and ultimately they replaced the corporate risk in pension management. Be careful what you ask for. On average, the common man sucks when compared to pension fund managers in investment returns.
I know, TMI, but hey, you started it.
I wonder if it will be applied to a future tax bill.
But they been collecting taxes since LAST may 1st. were did all that that tax go ?
They put 1B in spending on hold anticipating lower revenues due to covid-19; I would guess increased expenditures too due to the same. The tax credit hold is just part of that.
SD, I am not against pensions in theory. The problem is that it is not UNIVERSAL like in Canada. This is the problem. Canadian pensions are much more reasonable and police, firefighters, teachers, etc. are on a level playing field benefits-wise.
Yes, the 401k was originally as you said, but why were pensions phased out -- cost and the unpredictability (as we all see today). Yes the markets will go back up, but when and in the meanwhile the pension funds need to withdraw money on a frequent basis.
Good to hear Ijay. I think if you look, the Canadian "pension" is a state-run Social Security at a lower rate than ours. The max amount is about $1,200 per month, comes from a lifetime of payroll tax (as in no work, no pension), is taxed, etc. --- just like SS, but smaller $$$. There are some pensions too. We've done this before, try a read, use Canadian pension vs. Social Security. Or: https://www.investopedia.com/ask/answers/102714/what-are-differences-between-canada-pension-plans-cpp-and-social-security-benefits.asp
We offer Social Security exceeding Canada (we pay more too); pensions to 22% of Americans, private sector down to 13%. You seem to have a bug about public sector workers carving out a good deal; much has been said about historically bad wages/good benefits, a leveling wage field while benefits remained or went higher as politicians kicked the can down the road. All true IMO. But really ---- is your problem that they lobbied a good deal, do you hate them for that, or what? Because, as you said, it's not the concept of a pension.
The answer is to level the playing field ---- wages and benefits and that's a political issue, not an issue with the employees or Union. They lobby no different than you or I, and a lot worse than I.
While you are right, pensions left because of cost: that cost was really the risk mgt of the investment. They forecasted more than they could deliver. Once company's hit a recession, govt. mandated higher contribution rates ----> they felt they needed to get out of Dodge. It was the RISK that created the fear of cost. But I was there on this on and a huge contributing factor was the American idea of self-determination for our own finances ---- which was an urban myth. We, the people, invited them in not understanding that the pension advisor outperforms the individual, hands-down. We would have been better off suffering the short-term loss than the loss of long term pension gains. Meanwhile, whenever our 401s do worse than pension investments, America suffers because bad investments are worse for America (including companies, the market, and individuals) than good investments. It's just the economics of the thing.
Meanwhile, go back to 1921 and the reason pensions gained popularity --- they were a corporate tax loophole; that's right, you and I pay for it with our taxes. It was, and is, a good deal --- tax spending speaking wise.
Thus, if WE wanted pensions instead of 401Ks; we could have reduced the risk by upping the tax deduction for pensions. WE actually made that choice. But WE could reverse that; it's again a political choice IF the people demand it (like the Unions wisely do).
It turns out to be, on average, we made a very bad choice. So, somehow, blasting the one group that continues to hold the line on pensions seems to be more of the same bad choice. Instead we should be saying ---- let's up the corporate tax deduction and bring pensions back ---- they are better for us and that's better for America.
Meanwhile ----- back to the PBCG ---- since they can't cover a mass failure, in 2009, I dumped my pension for a IRA rollover. My wife kept hers; I figured hedge, right... So, in 2020, I really don't look that smart do I? No pensions really failed in the 2009 debacle. Just saying so you take all of this with a grain of salt :>) I will say I doubled this IRA ---- about 9% per year since 2009 so not that big a grain of salt :>) Pure luck of course (wink, wink, nudge, nudge). It was hard work, actually.
Hope that helps, enjoy the reading.
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