Wednesday, April 15th, 2009
Here’s what pisses me off about the American Dream. Excuse me while I politically rant but I have to get this out because it’s currently pissing me off at the moment.
HEALTH CARE!
Medical bills are the number one reason families file for bankruptcy.
Instead of doing something about it that helps the common man (i.e. democrats), the republican’s try to shoot nationalized healthcare down so it can keep big businesses pockets lined. So instead of (mostly) responsible families being rewarded for their hard work, they get the shaft by having to foot an enormous bill once a family member falls ill.
I understand that other countries have nationalized health care and I also understand that some of those countries have problems with their nationalized systems. But why should we have to pay $100 for a prescription to get filled when other people pay as little as $4 in other countries? This is, I’m only mentioning prescriptions. In Canada all necessary surgeries are free (free meaning you’re taxed more but don’t have to come out of savings or file bankruptcy later).
It’s time for a major overhaul of our healthcare system. The old system does not allow Americans to achieve the American Dream. It keeps American’s slaves to the the medical fraternity while prohibiting personal and social growth needed to revitalize the country.
If I want to take a chance and open a small business I’m immediately hit by a road block that keeps me in one sided employment contract that offers a healthcare plan. One sided meaning you can be let go for any reason but you’re more apt to stay there because of the health benefits.
I get it! We’ll get taxed more in order to provide a universal healthcare plan. So be it. We’re already getting taxed out the ass, why not tax an extra 3-5% out of my check to cover me and other U.S. citizens health care costs?
I’m willing to bet once the country as a whole stops filing bankruptcy on the inability to pay for rising healthcare costs, we’ll quickly see a prosperous America built on the ideas that anything is attainable.
As for me personally… this rant is brought on by the fact that I’m about to drop $3000+ out on medical bills (and that’s WITH insurance) at a time my wife is without work. We have an emergency stash but that’s beside the point! $3000 on medical bills that could be easily avoidable?
Hopefully Obama gets it and I think he will make the change needed.
Because of the new stimulus, we no longer have to pay $378 to Cobra /month for the wife and kids health insurance plans. Instead we get a 65% discount. Hopefully, Obama is going to do more to bring us to socialized medicine cause I’m sick and tired of being sick and tired of paying for medical help out of pocket WITH insurance.
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Wednesday, March 25th, 2009
1. A lower mortgage rate
It used to be all but impossible to refinance if your equity stake was less than 20% of your home’s current value. Now you may be eligible for a refi even if you owe as much as 105% of what the house is worth. To qualify, you must have a loan balance of no more than $417,000 (unless you live in a high-cost area).
2. An insurance safety net
Normally if you lose your job, you’ll have to foot the bill to keep your former employer’s health insurance coverage. Now the government will pay as much as 65% of the monthly premium for up to nine months for most people who have lost a job since Sept. 1, 2008 (the break phases out for couples who earn more than $250,000).
3. An incentive for new wheels
If you buy a new car, SUV, or motorcycle in 2009, you may be able to deduct the state and local sales and excise taxes you pay (couples with an adjusted gross income under $260,000 are eligible). State sales taxes average about 6%, so on a $30,000 car you could write off $1,800, plus any county or local sales taxes.
In some cases you will be affected and others you may not. However, it looks like you may have to spend money to make money. Since so many of us have been laid off, then it’s good to know about the health insurance option.
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Monday, June 9th, 2008
Unemployment spike stirs stimulus talk
Democratic leaders in Congress call for new measures to spur economy and help unemployed.
NEW YORK (CNNMoney.com) — The dismal jobs report on Friday has prompted renewed calls for a second congressional effort to stimulate the economy.
The Labor Department reported that the unemployment rate jumped to 5.5% in May from 5% a month earlier. It was the biggest monthly increase in more than 20 years.
Democratic leaders on Capitol Hill said the report shows that Congress and the Bush administration need to do more to help workers and the unemployed.
“These brutal numbers underscore the wisdom of the Federal Reserve’s refusal to bow to pressure to hike interest rates. But monetary policy alone will not be enough to restore growth to our economy,” said House Financial Services Chairman Barney Frank in a statement. “Additional fiscal stimulus is necessary.”
Stimulus 2.0
An economic stimulus package passed in early February featured tax rebates that are now being sent to more than 130 million Americans. On Friday, the Treasury Department reported that so far it has sent out nearly 67 million stimulus payments worth approximately $57 billion.
But one measure tossed out of that bill is a key measure under consideration for a second stimulus effort: an extension of unemployment benefits.
Currently, federal payments to people out of work are usually capped at 26 weeks. Some Democrats want to add another 13 weeks plus an additional 13 weeks in states with high unemployment, defined as 6% or more.
To date, the White House has opposed extending unemployment benefits.
Critics of the proposal point to studies showing that extending benefits can result in longer periods of unemployment by encouraging people to stay out of work. Supporters counter that the duration of unemployment may be attributable to other factors, and that those who receive extended benefits often end up with jobs that have better pay and benefits.
A bill to extend benefits was passed by the House Ways and Means Committee earlier this year, but Congress has not advanced a broader stimulus proposal.
House Speaker Nancy Pelosi, D-Calif., vowed Friday to bring an unemployment bill to the House floor.
That does not preclude lawmakers pursuing other stimulus measures, including some that President Bush has opposed in recent months such as:
- Federal aid for state and local governments to help them counter a loss in property taxes as a result in the housing crisis
- Federal aid for state and local governments to help them buy up and rehabilitate foreclosed properties
- Federal aid for infrastructure spending to create jobs on repair projects.
On Friday, during a swearing-in ceremony for new Secretary of Housing and Urban Development Steve Preston, President Bush said the disappointing jobs report “is clearly a sign that is consistent with slow economic growth.”
He then reiterated his call on Congress to make permanent his tax cuts. “The last thing Americans need is a massive tax increase,” he said.
It’s unclear whether President Bush will continue to resist calls for more stimulus. Chief White House aide Ed Gillespie told reporters that the administration was not ruling out further action on the economy.
One Senate Republican - Olympia Snowe of Maine, a member of the Senate Finance Committee - publicly stated her support for extending unemployment benefits. “As our economy continues to struggle, now is the time for Congress to take immediate and definitive action to bolster job growth, protect America’s workforce and extend unemployment insurance benefits,” Snowe said in a statement.
Housing rescue in focus
But beyond traditional efforts such as extending benefits to ease Americans’ financial strain, the centerpiece of any stimulus bill should be focused on housing, said economist Lakshman Achuthan, managing director of the Economic Cycle Research Institute.
“In the midst of a mild recession with housing at the epicenter, it would make sense to have additional stimulus focused on trying to establish some sort of trough in the housing market,” Achuthan said.
One bill that supporters say could help do that is a measure passed by the House and by the Senate Banking Committee. That legislation would let the Federal Housing Administration insure $300 billion in new loans for at-risk borrowers if their lenders agree to write down loan balances below the appraised value of borrowers’ homes.
“We must enact this legislation quickly in order to bring some stability to the markets, help hardworking Americans who are on the brink of losing their homes, and contribute to turning this economy around,” said Banking Committee Chairman Christopher Dodd, D-Conn., in a statement Friday.
Lawmakers said in recent weeks they hoped to have the bill ready for President Bush’s signature by July 4, but the Senate has yet to schedule floor time for a debate and vote. There is still a chance, political observers say, that they could meet their self-imposed July 4 deadline.
Posted in Generate income, Informational, Personal debt, education | No Comments »
Wednesday, April 30th, 2008
By Liz Pulliam Weston
Link
Most Americans should use their economic stimulus checks exactly as they told pollsters they would: to pay down debt and boost savings.
But retailers are doing their best to get a chunk — or, better yet, all — of your rebate check. The latest spin: offering you a gift card worth 10% more than your stimulus payment. So far, Sears, Kmart, Lands’ End and the many grocery chains under the Kroger and SuperValu umbrellas have announced such deals. Wal-Mart is expected to announce a plan within days.
Here are some of the reasons I hate this:
Your check won’t help your community as much as it could. The stores offering these deals aren’t the mom-and-pop places that could benefit from your checks the most and keep your money in the community longer. (The Kroger grocery chain includes Baker’s, City Market, Dillons, Fred Meyer, Fry’s, Gerbes, Hilander, Jay C, King Soopers, Owen’s, Pay Less, Ralphs, Smith’s and QFC stores. The Sears rebate deal applies to Sears, Kmart and Lands’ End stores as well as LandsEnd.com and Sears.com. SuperValu includes Albertson’s, Jewel- Osco, Cub Foods, Shaw’s and Shop’n'Save, among others.)
Buying U.S.-grown groceries or U.S.-made appliances is better than buying a plasma TV made overseas, of course, but if you really want your check to make an economic impact, spend it with a local business.
You pretty much have to give up your whole check. Kroger stores will at least give you change; you can buy as many gift cards as you want in increments of $300 and get change in return. Not the Sears stores, though. They want the whole check and will add 10% to the total loaded onto the gift card. And do you really want to spend it all at one store?
I hate gift cards on principle. They’re OK if you’re not actually giving them to someone. But they’re too easy to lose, and some come with fees that reduce their value over time (though that’s not the case with the Sears or Kroger gift cards). Also, they can become worthless if the chain files for bankruptcy, as Sharper Image’s recent filing showed.
But here’s the big one: You could be blowing your chance to get ahead. An ACNielsen poll in 2005 said 28% of U.S. consumers were living paycheck to paycheck, with “no spare cash” after paying bills. If that’s you, the last thing you want to do is squander this windfall.
Having just a few hundred bucks in savings could help you climb above the “work, spend and debt” rat race, as I wrote in “Why you need $500 in the bank.” That small cushion can help you avoid bounced-check fees, stay clear of payday lenders and avoid maxing out your credit cards when the next emergency inevitably crops up.
A young couple who throw their $1,200 combined rebate into a Roth individual retirement account and don’t touch it could have $20,000 by retirement, given typical long-term rates of return. Not a fortune, but way better than facing old age with nothing but a Social Security check.
Buy freedom instead
It’s more important, psychologically and practically, to have that little pad than it is to pay down high-rate debt — although that should be your next priority.
You may be telling yourself, “Well, I have to buy food anyway” or “I was planning to buy something at Sears eventually,” but that’s a slippery slope. You’re locking yourself into buying a certain amount from a certain retailer. Consider, instead, buying yourself some freedom from always living on the edge.
Resisting retailers’ siren calls is just going to get tougher as the Internal Revenue Service begins mailing out rebate checks and businesses ratchet up their advertising. So here’s my advice for a two-step plan:
* Figure out what you should do with the money. If you haven’t already, read “America, don’t blow this rebate” for a recap of your best options, including paying down debt, boosting savings and, if your finances are already in good shape, buying American. Make your decision now, before your head can be turned by advertising.
* Commit to that plan. You can read “Learn when you’ll get a rebate check” to find out when your check is due. If you plan to save the money or pay down debt, set up an automatic transfer that will take effect a week or so after your check is scheduled to arrive. Want to apply the money to your highest-rate credit card? Set up a transfer between your checking account and your credit card account. Want the money to go into savings? Set that up with your bank, or open a high-rate savings account online and have the money transferred there.
The key is to do this before the check arrives. When something is important — investing for retirement, saving for a goal, paying down debt or boosting an emergency fund — it’s best to make a decision once and set it up to continue automatically, rather than give yourself opportunities to change your mind.
Posted in Informational, Personal debt, education, goals, purchases, success | No Comments »
