WASHINGTON – With the Social Security program projected to face a cash shortfall of $10 billion next year, Congressional democrats have been racing to find novel ways to extract taxes to counter the deficit.

Inspired by recent proposals to tax “health care” items like Q-tips, contact lenses and condoms to help pay for free health care for all, democrats in the House and Senate are proposing bills that would levy a similar tax on senior discounts and funnel the receipts into the Social Security program.

The tax rate would be 50% of any discount enjoyed as the result of “any manner of preferential senior pricing on any good or service.”

“The retiree enjoying a Moons Over My Hammy® breakfast at Denny’s is invariably enjoying a hefty senior discount as well,” said Senate Finance Committee Chairman Max Baucus. “In short, he’s enjoying his breakfast on the back of the American pensioner and it’s time to pay the piper.”

Baucus said “untold billions” in untaxed senior discounts had been allowed to “slip through the tax coffer cracks” over the past few decades. However, he said the bills would focus only on receipts going forward and not seek to collect taxes retroactively.

“Now is the time to look forward, not behind us,” he said.

On the floor of the Senate, Baucus repeatedly invoked the Denny’s example, noting that “breakfast analogies are terra firma for a lot of old folks. They make them feel safe, because what can hurt you at breakfast?”

Using a base price of $7.99 per Moons Over My Hammy® and a 10% senior discount, Baucus declared that assessing a 50% tax on the savings generated by senior discounts would pay off next year’s social security deficit after only 25 billion Moons Over My Hammy® breakfasts subject to the senior discount tax.

Get a senior discount with that Wii? Be sure you paid taxes for the privilege.

The U.S. Census Bureau estimates there are 38.7 million seniors living in the United States.

“But that’s only if we taxed that particular breakfast at that particular restaurant,” Baucus continued. “Remember, seniors use discounts everywhere – leisure suits, cruises, lawn chairs, airfare, the list is endless. If we capture all of it, it won’t be long before Social Security – the hallmark of our golden years– is again made whole.

“Remember, the breakfast scenario is just one example. There are many, many ways to provide a senior discount, and I can assure you there are even more ways to tax it.

“All we’re doing is we’re taking the same great logic that taxes health care to pay for health care and we’re applying it to retirement entitlements.”

Baucus added that a frequent senior purchase – the adult diaper – could be a “sweet spot” of taxation in that if its purchase price was in any reduced via senior-based preferential pricing, it would generate taxes both for health care and social security.

“I think you’ll find many instances of such happy synergies,” he said, pointing to other items such as dentures, walking canes, wheelchairs and Viagra. “We’re getting two bites at the apple here, but that’s because we’ve got two apple trees to take care of.”

Both the Senate and House bills are expected to pass, with the tax to be in place before the end of the year in time for the height of the senior buffet season in December.

In most cases, taxpayers won’t be bothered with additional forms during tax filing season because merchants will be directly responsible for collecting the tax at the point of purchase and submitting them to the government.

Originally posted 2009-09-23 18:56:54. Republished by Blog Post Promoter