AUTHOR: John Katz on 2/27/2025 FIRST: Jonathan Clements on 2/27/2025 | RECENT: 1michaelm on 3/5/2025
Comments
The question of who “deserves” more public support is complicated. But the data show that K–12 education and seniors have followed very different financial paths over the past two decades. Some argue that seniors failed to prepare adequately for retirement. But even those who saved diligently are losing ground. Social Security is indexed only to general inflation (CPI). Meanwhile, the specific expenses seniors face—especially healthcare and long-term care—often rise much faster than the overall inflation rate. So even with cost-of-living adjustments, purchasing power can erode in practice. Regarding the need to support local education, K–12 education has seen a substantial real increase in funding. Nationally, inflation-adjusted per-student spending rose from roughly $15,000 in 2002 to more than $20,000 in 2024—a real increase of about 36% above inflation. In other words, education funding has grown meaningfully in real terms, while Social Security benefits have seen essentially zero real growth. That national average, however, masks enormous regional variation. In New Jersey, for example, inflation-adjusted per-student spending rose from about $21,000 to more than $30,000. In Idaho, by contrast, it barely increased, moving from roughly $11,000 to $12,000. Broad calls for “more spending” on K–12 education often overlook these disparities. In many states, education funding has already grown substantially relative to support for seniors. None of this makes the budget math simple. Social Security’s long-term shortfall will likely be addressed either through reduced future benefits or higher taxes. Current seniors are likely to be largely protected, or “grandfathered,” meaning the adjustments would primarily affect younger workers and future retirees. But large increases in teacher pensions also fall on younger taxpayers, so that is to be considered as well. How do we allocate limited resources? And who ultimately bears the cost of policy decisions?
Everyone pays the same standard Part B premium regardless of income.Don't they? Income only comes into play through IRMMA which is an add-on surcharge. Without IRMAA, your income does not affect the Part B base fee at all.At least, that's my read. Think of it another way: Do you know of any other health insurance provider/adminstrator that sets your premium based in part on your income? I don't.
IRMAA is a tax. The IRS doesn't call it that, but it is a means-tested levy on income used to fund a public program, which is the functional definition of a tax. While it is labeled a "premium adjustment," it behaves exactly like a progressive income tax.
It's one thing to consider federal and state income taxes, it's quite another when you add in city taxes, property tax (on homes and vehicles), sales tax, gasoline tax, tax on phone bills, internet bills, IRMMA, and on and on.
This article does not take an objective view of the problem. Suggesting that there is but one stool left, for example (personal savings), is absurd and misleading. Congress will do what they always do, wait for the last minute to add some reforms. Social Security as a leg is not going anywhere. And statements like people being forced to 'hoard' in order to prepare for retirement is just a bit hyperbolic. Hoarding is what people in Stalingrad did when it was assaulted by the Nazis. People make choices throughout their lifetimes on all sorts of matters: eating right, where to live, benefits of a lifetime of exercising, getting a good education, obtaining routine medical care, what to do for a living, spending within their means, etc, etc. We do a rotten job in the U.S. on educating our people on all these matters. It's inexcusable. People leave high school unprepared to make good decisions about all sorts of issues they will confront in life. And yes, some of this guidance should be supplemented from family, but in many cases they have not been educated on such matters. Savings plans work. They are not perfect. Nothing is. But is the tool the problem here? Or is it the person wielding the tool? And if it's the person, how do we help them more skillfully leverage savings plan? And yes, Social Security can be improved. For one thing, tax all Social Security wages. Why stop when an individual's income reaches an annual amount of $186,000 -- or whatever the limit is this year? Medicare taxes apply to all income, why not Social Security? Some of this stuff is hard, and some of it is not.
I don't think there is a need to feel guilty about the life you lead. Continue to have empathy and compassion for the less fortunate in your orbit. And help out when you can. People don't benefit if you skip a trip to London, or fly economy rather than business class.
I bought a Hyundai about 15 months ago and financed it with the intention of paying it off after one month, which is what we did. Before finalizing the deal, we triple checked with the finance guy that we could do so without penalty. There wasn't a problem. I guess this may vary from car company to car company or by dealership.
"OUR GOAL IS TO TELL you everything you need to know about money—all in one place ...""HUMBLEDOLLAR STRIVES to deliver conflict-free financial advice that helps everyday Americans make smarter money choices." The sentences above come from the "About" section. I think this site works best when content is guided by these 'guard rails' established in the original intent of the site. I think the site wobbles a bit when people try to 'shoe horn' topics that may be interesting and make a valid point, but are ultimately tangential to the mission of the site.
Lots of questions about this. Starting with, how has the funding of Ohio schools over the last 15 years compared with the rate of inflation? Has there been any correlation between increases in money spent on schools and student achievement, e.g, graduation rates, test scores, post-secondary enrollment? How much is Ohio paying per student today vs 15 years ago? The increases in spending, if any, over the last 15 years - where have they gone? Special programs that benefit certain groups of students? Money allocated to general student population? Or administrative positions? Other? Public schools must be funded appropriately. We need to make sure our children are prepared to be successful in life. But there also needs to be accountability. How do we objectively measure whether we have the right amount of money going to public schools? What's that yardstick?
There are a lot of assumptions built in to his discussion: First, maybe they haven't saddled themselves with such a large fixed financial cost, maybe they paid cash outright. Second, maybe the people with the expensive cars aren't living above their apparent means (as you say, Mark, they may well have financial support from somewhere - how would you or anyone else know that)? Third, maybe they are not leasing to afford something they couldn't buy outright - maybe they bought it outright. Last, maybe they derive greater enjoyment from driving than most others do - in which case they may prefer to splurge on a vehicle and cut back on vacations, or some other areas to afford the vehicle. Maybe it was the vehicle in lieu of (fill in the blank). But, as you surmise, the most likely outcome is that they have purchased too much car given their stage in life, and like many of us, will learn from the mistake. I hope in the meantime the car brings them lots of enjoyment.
Comments
The question of who “deserves” more public support is complicated. But the data show that K–12 education and seniors have followed very different financial paths over the past two decades. Some argue that seniors failed to prepare adequately for retirement. But even those who saved diligently are losing ground. Social Security is indexed only to general inflation (CPI). Meanwhile, the specific expenses seniors face—especially healthcare and long-term care—often rise much faster than the overall inflation rate. So even with cost-of-living adjustments, purchasing power can erode in practice. Regarding the need to support local education, K–12 education has seen a substantial real increase in funding. Nationally, inflation-adjusted per-student spending rose from roughly $15,000 in 2002 to more than $20,000 in 2024—a real increase of about 36% above inflation. In other words, education funding has grown meaningfully in real terms, while Social Security benefits have seen essentially zero real growth. That national average, however, masks enormous regional variation. In New Jersey, for example, inflation-adjusted per-student spending rose from about $21,000 to more than $30,000. In Idaho, by contrast, it barely increased, moving from roughly $11,000 to $12,000. Broad calls for “more spending” on K–12 education often overlook these disparities. In many states, education funding has already grown substantially relative to support for seniors. None of this makes the budget math simple. Social Security’s long-term shortfall will likely be addressed either through reduced future benefits or higher taxes. Current seniors are likely to be largely protected, or “grandfathered,” meaning the adjustments would primarily affect younger workers and future retirees. But large increases in teacher pensions also fall on younger taxpayers, so that is to be considered as well. How do we allocate limited resources? And who ultimately bears the cost of policy decisions?
Post: Need, yes. Deserve, no! Who “deserves” more?
Link to comment from February 24, 2026
Everyone pays the same standard Part B premium regardless of income.Don't they? Income only comes into play through IRMMA which is an add-on surcharge. Without IRMAA, your income does not affect the Part B base fee at all.At least, that's my read. Think of it another way: Do you know of any other health insurance provider/adminstrator that sets your premium based in part on your income? I don't.
Post: Your effective tax rate
Link to comment from February 2, 2026
IRMAA is a tax. The IRS doesn't call it that, but it is a means-tested levy on income used to fund a public program, which is the functional definition of a tax. While it is labeled a "premium adjustment," it behaves exactly like a progressive income tax.
Post: Your effective tax rate
Link to comment from February 2, 2026
It's one thing to consider federal and state income taxes, it's quite another when you add in city taxes, property tax (on homes and vehicles), sales tax, gasoline tax, tax on phone bills, internet bills, IRMMA, and on and on.
Post: Your effective tax rate
Link to comment from February 1, 2026
This article does not take an objective view of the problem. Suggesting that there is but one stool left, for example (personal savings), is absurd and misleading. Congress will do what they always do, wait for the last minute to add some reforms. Social Security as a leg is not going anywhere. And statements like people being forced to 'hoard' in order to prepare for retirement is just a bit hyperbolic. Hoarding is what people in Stalingrad did when it was assaulted by the Nazis. People make choices throughout their lifetimes on all sorts of matters: eating right, where to live, benefits of a lifetime of exercising, getting a good education, obtaining routine medical care, what to do for a living, spending within their means, etc, etc. We do a rotten job in the U.S. on educating our people on all these matters. It's inexcusable. People leave high school unprepared to make good decisions about all sorts of issues they will confront in life. And yes, some of this guidance should be supplemented from family, but in many cases they have not been educated on such matters. Savings plans work. They are not perfect. Nothing is. But is the tool the problem here? Or is it the person wielding the tool? And if it's the person, how do we help them more skillfully leverage savings plan? And yes, Social Security can be improved. For one thing, tax all Social Security wages. Why stop when an individual's income reaches an annual amount of $186,000 -- or whatever the limit is this year? Medicare taxes apply to all income, why not Social Security? Some of this stuff is hard, and some of it is not.
Post: How do you really feel about 401k plans?
Link to comment from January 11, 2026
I don't think there is a need to feel guilty about the life you lead. Continue to have empathy and compassion for the less fortunate in your orbit. And help out when you can. People don't benefit if you skip a trip to London, or fly economy rather than business class.
Post: Someday Is Here
Link to comment from December 24, 2025
I bought a Hyundai about 15 months ago and financed it with the intention of paying it off after one month, which is what we did. Before finalizing the deal, we triple checked with the finance guy that we could do so without penalty. There wasn't a problem. I guess this may vary from car company to car company or by dealership.
Post: The Monthly Payment Trap: How Car Dealerships Hide the Real Cost
Link to comment from December 16, 2025
"OUR GOAL IS TO TELL you everything you need to know about money—all in one place ..." "HUMBLEDOLLAR STRIVES to deliver conflict-free financial advice that helps everyday Americans make smarter money choices." The sentences above come from the "About" section. I think this site works best when content is guided by these 'guard rails' established in the original intent of the site. I think the site wobbles a bit when people try to 'shoe horn' topics that may be interesting and make a valid point, but are ultimately tangential to the mission of the site.
Post: Letter from Elaine
Link to comment from November 23, 2025
Lots of questions about this. Starting with, how has the funding of Ohio schools over the last 15 years compared with the rate of inflation? Has there been any correlation between increases in money spent on schools and student achievement, e.g, graduation rates, test scores, post-secondary enrollment? How much is Ohio paying per student today vs 15 years ago? The increases in spending, if any, over the last 15 years - where have they gone? Special programs that benefit certain groups of students? Money allocated to general student population? Or administrative positions? Other? Public schools must be funded appropriately. We need to make sure our children are prepared to be successful in life. But there also needs to be accountability. How do we objectively measure whether we have the right amount of money going to public schools? What's that yardstick?
Post: Public Schools and Property Taxes
Link to comment from October 28, 2025
There are a lot of assumptions built in to his discussion: First, maybe they haven't saddled themselves with such a large fixed financial cost, maybe they paid cash outright. Second, maybe the people with the expensive cars aren't living above their apparent means (as you say, Mark, they may well have financial support from somewhere - how would you or anyone else know that)? Third, maybe they are not leasing to afford something they couldn't buy outright - maybe they bought it outright. Last, maybe they derive greater enjoyment from driving than most others do - in which case they may prefer to splurge on a vehicle and cut back on vacations, or some other areas to afford the vehicle. Maybe it was the vehicle in lieu of (fill in the blank). But, as you surmise, the most likely outcome is that they have purchased too much car given their stage in life, and like many of us, will learn from the mistake. I hope in the meantime the car brings them lots of enjoyment.
Post: I Really Don’t Get It, But I Guess That’s OK
Link to comment from October 21, 2025