Thursday, August 4, 2011
Elderly Parents As Tax Dependents
A basic understanding of accounting and shifting demographics makes it clear that social security will become insolvent. Or, the real value of the payments will be whittled away by inflation. Either way, fewer elderly individuals will be able to live off it. And in the bigger picture, the capacity of the state to care for a greying population, will significantly diminish and families will have to take up the slack. Allowing children to declare their elderly parents as dependents on their tax returns would provide incentives and the ability for more individuals to do so.