Monthly Archives for May 2015

Rhode Island Lawmakers Poised to Give Retirees Financial Tax Relief

Published in Woonsocket Call on May 31, 2015

During the 2014 legislation session, Rep. Robert E. Craven, (District 32) introduced and successfully pushed for passage in the General Assembly. This legislative proposal would ultimately being signed into law by the Governor. Little did the North Kingston law maker realize that door knocking to get reelected in last November’s election would give him an issue to tackle on Smith Hill this year.

At hundreds of homes, he heard the same issue from his older constituents. One such comment was etched sharply in Craven’s memory: “You’re a nice guy, buy I am not going to vote for you because I am leaving the state, the older voter told him. The puzzled lawmaker asked “why?” The response, “We decided the state is so expensive to live in because of taxes we’re going to sell our house and move to Florida. Wanting the specifics, Craven asked, what specific tax bothers you? “We are only of a few states that tax social security benefits, that’s the straw that broke the camel’s back,” said the older voter.

Craven’s legislative proposal, H 5000, was heard Wednesday night before the House Finance Committee. Strongly supported by House leadership, he says, the legislation would ease the tax burdens on Rhode Island retirees by exempting them from paying state income tax all Social Security benefits as well as income received from federal, state and local government retirement plans, disability benefits, military pensions and private pension plans and deferred-compensation plans.

Among its more than 40 co-sponsors are Rep. Stephen M. Casey (D-Dist. 50, Woonsocket), Rep. Michael A. Morin (D-Dist. 49, Woonsocket), Rep. Samuel A. Azzinaro (D-Dist. 37, Westerly) and Rep. Cale P. Keable (D-Dist. 47, Burrillville, Glocester).

If enacted, Rhode Island would join 27 other states – including Massachusetts and Maine – and the District of Columbia that specifically exempt Social Security income from taxation. (Although Rhode Island does not specifically tax Social Security benefits, that income is identified on federal tax returns. Since Rhode Island’s income tax is based on the federal adjusted gross income of federal tax form filers, the end result is that Rhode Island generates a portion of its income tax collections from Social Security benefits.)

According to Craven, his legislative proposal would financially benefit Rhode Island seniors who receive retirement benefits. ”After paying into the Social Security system their entire working lives, or putting a little money away into private pension plans, or working at jobs that provide them with a pension, it doesn’t seem right that retirees are having taxes eat away at benefits they depend on for their very livelihood,” he says.

“Retirees living on a fixed income are probably more severely impacted by taxes and tax increases than other population groups,” observes Craven. “If we are committed to helping retirees have a safe and secure life in their later years, and if we want to help seniors afford to stay in Rhode Island rather than moving to more tax-friendly locations, we need to ease their financial burdens. Exempting retirement income from the state income tax is one step we should take,” he adds.

Tax Exemption in House Budget

Weaving its way through the legislative process Craven ultimately expects his legislative proposal to be modified to not give older tax payers a complete exemption on paying taxes for their social security income. Specifically, the revised language would say, “If your house hold income is under $100,000 or less than your Social Security is tax exempt from state income taxation.”

While a Senate companion measure has been introduced by Senator Walter S. Felag, Jr., representing Bristol, Tiverton and Warren, an amended H 5000 will be placed in the House Budget because of its cost, says Craven.

The price tag could be between $30 and $35 million, Craven says, noting that better than expected revenues enable it to be funded. “It’s a priority to the state’s economic recovery, he says.

Older retirees, making from $35,000 to $100,000, from Social security and their pensions, will just put their dollars in the local economy, adds Craven. “It’s a good investment and we owe it to them. These retirees have been here all their lives, he says, noting that they ask very little for benefits from municipalities. “They have a lot of time on their hands to volunteer [in their communities] and are very philanthropically included in offering money and services to charities.”

Says House Speaker Nicholas Mattiello, “Representative Craven’s bill to exempt the state tax on Social Security will be included as part of the budget that the House Finance Committee will be considering within the next few weeks. Governor Raimondo included this exemption for low-wage earners in her original budget proposal, but the House will be broadening it to assist the middle-class retirees as well. The House budget exempts retirees, age 65 and over, who have income thresholds of up to $80,000 for individuals and $100,000 for joint tax filers.”

“We believe that by incorporating Rep. Craven’s bill into the budget, this will begin to stop the exodus of retirees leaving Rhode Island for many other states where there is no state tax on Social Security benefits,” adds Mattiello.

Gov. Gina M. Raimondo sees Social Security is a key source of income for older Rhode Islanders, noting that her submitted March budget proposal eliminates state taxes on Social Security benefits for low and middle income seniors “to help them make ends meet and stimulate our economy.”
With Rhode Island unions hit hard by the state’s recent pension reform, Craven’s proposal has received thumbs up from some.

James Parisi, field representative and lobbyist for the Rhode Island Federation of Teachers and Health Professionals, says his union supports Craven’s legislative proposal. “Unlike some other tax cut proposals introduced this session, his bill includes state and local government pension benefits. About half of the state’s teachers were never eligible to participate in social security so any tax cut proposal that is limited exclusively to social security benefits would be unfair to thousands of retired public school teachers,” he says.

Jim Cenerini, a lobbyist for Council 94, AFSCME also says his union is squarely behind H 5000. “Council 94 believes that legislation deserves careful consideration and support because: many other states provide some type of income tax exemption to retirement benefits/Social Security; in 2014 Kiplinger ranked Rhode Island as one the least tax friendly states for retirees; and since a significant majority of public employees remain in Rhode Island, and contribute to our local economy by spending on goods and services, it’s important to provide an incentive to remain in-state.”

A Final Note…
Other legislation proposals have also been thrown into the legislative hopper this session to protect older taxpayers. H 5446, introduced by Woonsocket law maker Rep. Stephen M. Casey, would protect the pocket books of retired teachers who are receiving a pension from Massachusetts. “These retirees, whose pension are overseen by Massachusetts Teachers Retirement System, are essentially double taxed because of the state’s tax code,” he says.

On Friday, May 29, the Rhode Island Public Expenditure Council (RIPEC) issued a report noting that the state may have significantly more funds available in fiscal 2015 and 2016 than anticipated when Gov. Raimondo submitted her budget in March. Specifically, state revenues are expected to be up by $106.8 million this year and $36.6 million next year, with additional funds available from expenditure reductions.

For this writer, its sound public policy to use some of the anticipated surplus identified in RIPEC’s report to enact H 5000 and H 5446 to lessen the tax burdens of Rhode Island’s retirees. As mentioned earlier, older taxpayers pull less resources from their cities and towns. But, most important, these retirees have greatly contributed to the quality of life in their communities throughout their working years.

Herb Weiss, LRI ’12, is a Pawtucket-based writer covering aging, health care and medical issues. He can be reached at hweissri@aol.com.

Bridging the Generations Through Multi-generational Trips

Published in Woonsocket Call on May 24, 2015

        For America’s 76 million baby boomers who spend $120 billion annually in leisure travel, three generation family vacations, including kids, parents, aunts/uncles and grandparents, are becoming a popular way to bond and create lasting memories, says a new AARP study about travel patterns of age 45 and over persons.

Researchers say that “a multi-generational trip is not typically inspired by a special event, but rather a desire to spend quality time together as a family.”  Although grandparents are more likely to pick up the tab for the trip, typically each family pays for their own expenses, they note.  Eighty one percent of travelers stayed at the same accommodation with their entire family.

The February 2015 research study on Multi-Generational Travel, offers insights into multi-generational vacations including why families are going, where they’re going, what they do on these family vacations, the challenges to plan them and why they create memories of a lifetime.

“Multi-generational family travel is becoming the new trend in family vacations. Our AARP 2015 Travel Trends found initial evidence that they would be popular in 2015 and now we know why,” said Stephanie Miles, Vice President, Member Value, AARP. “Our multi-generational travel research found 98 percent of travelers who took a multi-generational trip were highly satisfied and 85 percent are planning to take another one in the next 12 months.”

According to the study’s findings, 80 percent of the respondents traveled domestically in the U.S. and many chose active cities, beaches, amusement parks (Disney, too).  Also, California and Hawaii were two popular states to visit.  Domestic generational trips usually spans from 4 to 7 days.

Twenty percent traveled internationally with half heading to the Caribbean, Mexico or South America, says the findings.  Cruising is also a popular way to vacation for 25 percent of international travelers.  But, almost 40 percent chose nostalgic destinations to share a childhood memory.

The study finds that regardless of the location of the multi-generational trip, “dining out is the primary activity that engages the whole group.” While selecting and planning a trip may challenging, especially choosing the travel date, 98 percent of the multi-generational travelers were satisfied with their most recent trip.

Researchers found that traveling with parents, kids and grandparents can be positive in many ways.  Eighty three percent say that the trip brings the entire family together, while 69 percent stressed it helped to build special memories.  Fifty percent of the respondents noted that they were able to spend time with grandkids and 36 percent note the quality one-on-one time with family/spouse experienced during traveling.  Twenty nine percent say there were benefits of adult relatives spending time with younger generations.

The new research conducted by AARP Travel offers valuable insights into multi-generational travel, findings that Collette certainly can relate to, says Amelia Sugerman, Communications & Public Relations for Pawtucket-based Collette, a third-generation family-owned travel company.  “Over the past five years, Collette has witnessed an increase in family travel by about 20%,” she says, noting that this might be tied to age 65 and older adults who feel an urgent need to create ever lasting memories with their families.

“In a day and age where text messaging and face time has become the norm, it’s a unique chance to spend quality time together as one unit.  Although we do agree that bringing the family together and helping to build memories are top benefits of multi-generational travel, we have also identified many families who use the experience to celebrate a momentous occasion or event, says Sugerman, noting that the AARP study did not find special events triggering the planning of a Multi-Generation Vacation.

An older traveler, who took Collette’s National Parks tour, recently shared the details why this trip was so important to her family.  “My husband and I are getting older. Of course we think about the time we have left to spend with our grandchildren. This experience was the perfect way to celebrate our 50th wedding anniversary.”

Like many of Collette’s older travelers, this customer was ambivalent about the destination. adds Sugerman, noting that the older couple did not want to travel too far and wanted everyone to enjoy themselves, but the experiences were far more important than the sights of the destination.”

Sugerman says the benefits of touring organized by companies like Collette, is that guests of all ages can have a great experience and no one has to worry about the details of planning.  This reflects findings in the AARP study that found 20 percent of families identify the task of coordinating the trip to be the toughest.

“Guided travel takes the guess work out of it [traveling] and leaves valuable time for guests to simply enjoy their time together, says Sugerman.

Don’t forget to document your family multigenerational trips, suggests Patricia S. Zacks, proprietor of the Camera Werks, on Hope Street in Providence.   “While it’s trendy to be taking pictures on your cell phone or selfies documenting your vacation, people tend not to print these pictures,” she says, noting that statistics indicate that these pictures stay on a disk or memory card.

Taking special pictures of your family members on a trip will give you images that you can look at and reflect on, says Zacks. ‘There is nothing more special to look at than a 100 year old printed photo.  The younger generation geared to cell phones won’t have this experience.

For more information about Multi-Generational Travel vacations, go to http://www.gocollette.com

For details on planning a stress free family vacation, go to travel.aarp.org/articles-tips/articles/info-10-2013/how-to-plan-a-stressfree-multigenerational-trip.html.

Herb Weiss, LRI ’12 is a Pawtucket-based writer who covers aging, health care and medical issues.  He can be reached at hweissri@aol.com.

Sensible Advice from Seasoned Folk to the Class of 2015  

Published in Woonsocket Call on May 17, 2015 — Updated

This month, notable and professionally successful commencement speakers are again gathering at the nation’s Colleges and Universities to give the robed graduating Class of 2015 seniors’ practical tips and advice as to how to have a rewarding personal and professional life.  High profile speakers cam oftentimes translate into big bucks for speaking fees but these widely recognized speakers can bring prestige to the educational institutions.

CNN.web has announced the this year’s high profile speakers for the upcoming commencement season. According to website, like every year these speakers are politicians, journalists, military leaders, entertainers and business CEOs.  Here’s a sampling: President Barack Obama and First Lady Michelle Obama, Oscar winning actors, Anthony Hopkins and Denzel Washington, Novelist and Essayist Author Salmon Rushdie, Bill Nye, the “Science Guy” and Journalist Katie Couric.

May be its time to end the practice of bringing in high-paid commencement speakers.  For this writer, regular folks will do.  Below you might just see many potential commencement speakers, just waiting for the 10 minutes of fame to stand before hundreds of graduating seniors to give their “pearls of wisdom” on living a better life. You may not recognize them on the street, but many in their community know who they are for their achievements of making their Cities and Towns a better place to live.  While not high-profile, through life’s experiences honed every day at work or in their personal worlds, they can give Rhode Island’s college graduates sound, practical advice, to live in a very challenging, and changing world.

Charles Bakst, 71, Providence, retired Providence Journal political columnist. “Stand for something and act upon it.Don’t assume someone else already has done it or will do it.  Work to advance yourself but remember there are plenty of people, even right here in Rhode Island, who have not had the advantages you’ve had. They could use a break too. Help them.”

Dave Barber, 60, East Greenwich, Reporter Capitol Television RI State House. “It’s attitude, not aptitude that will determine your altitude.  There is nothing that will serve you better in the future than a positive mental attitude.  There are two days in life that never exist; yesterday and tomorrow. Yesterday is history, tomorrow a mystery. Live in the moment. Exercise gratitude and kindness in all that you do because there has never been a statue erected of a critic.”

Rick Roth, 61, Cambridge, MA, Owner of Mirror Image.  “Read because if you don’t know anything you are no good to yourself or anybody else and reading is the key to gaining knowledge.  When you are talking (particularly about yourself) you can’t listen. You learn by listening. Try to make the world a better place Pursuit of money is an empty pursuit and will leave you unhappy and dissatisfied.”

Scott A. Davis, 58, Eastside, Owner of the Rhode Island Antique Mall. “In today’s age of information, simply having knowledge is not worth much.  The secret to success in the future will not lie so much in what you know, but in your ability to synthesize information, whether already known or newly acquired, and to draw insightful and valuable conclusions from it.”

Scott Rotondo, 41, Pawtucket, accountant at Tivoli Audio. “Always be willing to expand your intellectual toolbox. Challenge the way things are done, and your own beliefs from time to time. Take in other people’s opposing points of view not with rancor and disdain but with dignity and respect.”

Lisa A. Proctor, 55, East Providence, healer/counselor. “You can not necessarily say all things are possible with God because many do not believe, but I would say a lot of situations we find ourselves in heal when we live honestly, purely, committed and have a merciful and compassionate heart towards others.”

Rudy Cheeks, 65, a musician and columnist of Motif, Providence, “If you can find what you love and make it the center of your life, you’re doing good and will likely be happy.  Whatever you do, “building community” should be an element in your life. Meet your responsibilities (e.g. if you want to create your own family, make sure you are ready for it and committed to it). When you become an “active consumer,” be a smart and thoughtful consumer.”

Kathy Needham, 53, Rumford, Controller, of Pawtucket Times and Woonsocket Call. “Follow this old adage, “Autograph your work with excellence, it is a signature of who you are”.  Take great pride in all you do but always remember to be humble.  Know that success is a personal goal.”

Gayle L. Gifford, 61, Providence, a strategy consultant to nonprofits, “Be an informed citizen of the world.  Read quality news from home and abroad.  Travel. Look. Hear. Participate to create the community you want your children and grandchildren to live in. Hopefully that community is one of justice, peace and inclusion. Don’t work all day in a job that destroys what you value. Play outside.”

Crystal R. Parifitt, 41, Pawtucket, Owner of  FurBabies, a small pet salon. “Live within your means, below if you can…owning the biggest and best is overrated.  Don’t go after financial gain, choose financial stability because in 20 years you will regret the time you spent ‘chasing’ when you should have been living.”

Nancy Thomas, Cranston, President of Tapestry Communications.  “What you have done has largely been expected of you.  Now, what do you expect of yourself!  Find more than one thing you can do.  Pursue your education.  You’re not done.  Read, discuss, have opinions. Let the negative inspire you, and the positive be your lens. And, as it has always been, there is no work as important as that of raising a child.  Find your path to doing well at both.”

Barbara Peters, Newport, former AARP RI Communications Director, “Life is full of successes and disappointments. When we are young we tend to “cry” when the material things we want don’t immediately come our way. Forget the disappointments and concentrate on your successes. Nobody will hand you what you think you deserve.  [Only] hard work, dedication to your craft and sensitivity to the feelings of others will bring the rewards to you that are truly deserved.”

Cheryl Babiec, Pawtucket, Pawtucket School Teacher. “As an old saying goes….’One Man’s Junk is Another Man’s Treasure’ continues to hold true with the test of time. One of my yard sale “finds” had the following inspirational verse (though the author is unknown):‘Life is not measured by the number of breaths we take, but by the number of moments that take our breath away.’”

Herb Weiss, LRI ’12 is a Pawtucket writer covering aging, health care and medical issues.  He can be reached at hweissri@aol.com.