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What to Know for Tuesday, July 14th, 2026: |
1: Economist proposes taxing gig economy companies to shore up Social Security — could address "misclassification" draining trust fund since 2000s |
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(Image Credit: Getty Images) |
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Labor economist Kathryn Anne Edwards proposes taxing companies (Uber, DoorDash, TaskRabbit) using gig workers to generate Social Security revenue: Gig companies currently avoid employer-side Social Security taxes by classifying workers as independent contractors instead of employees — Edwards: taxing employers would neutralize financial incentive to misclassify, encouraging hiring actual employees instead — would also align with Labor Department/state regulations designed to protect workers through minimum wage, overtime, child labor protections. "Misclassification" problem ballooned since 2000s as self-employment tax hasn't changed since 1983: Workers hired as independent contractors instead of employees lose employer-side Social Security contributions (6.2%) — Treasury research shows most self-employment growth past 15+ years came through misclassified independent contractors, not genuine business startups — self-employed people lower taxable earnings through expenses to reduce tax burden, meaning Social Security doesn't receive real-time contributions. Self-employed misclassification reduces retirement benefits — Edwards: gig workers end up with lower Social Security payments than expected given earnings: Social Security popular because it's fair ("you work, you pay; you employ, you pay"), but large "employ but don't pay" category undermines program — proposal not silver bullet solving 2032 trust fund depletion but makes Social Security "fit for 21st century" by closing misclassification loophole that's drained revenue for decades.
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➜ Read the full article from Marketplace here. |
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2: Married retirees can claim up to 50% of spouse's benefit as spousal benefit — early claiming reduces by 35% at 62 vs. 25% for standard benefits |
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(Image Credit: Getty Images) |
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Spousal benefits allow eligible married retirees to receive up to 50% of primary spouse's primary insurance amount (monthly benefit at full retirement age): Three eligibility requirements: primary spouse currently receiving benefits, married at least 1 year, beneficiary age 62+ (or caring for child under 16 or disabled child) — divorced beneficiaries eligible if married 10+ years, not remarried, divorced 2+ years (can claim anytime if meet requirements, ex doesn't need to be claiming yet). Early claiming spousal benefits penalized more heavily than standard benefits — reduces by 35% at age 62 vs. 30% for standard benefits; 25% reduction at 64 vs. 20%: Spousal benefit reduction 25/36 of 1% monthly for first 36 months (~8.33% annually) vs. 5/9 of 1% for standard benefits — unlike standard benefits, spousal benefits receive NO boost if delayed past full retirement age — claiming at FRA (67 for those born 1960+) provides full 50% spouse benefit. Strategy worth considering for married retirees with shorter work histories — but claiming decision requires careful planning: Primary spouse must be receiving benefits for you to qualify for spousal benefit — divorced option provides flexibility for those meeting requirements — spousal benefit strategy can supplement lower-earning spouse's record, but permanent reduction if claimed early must be factored into lifetime benefit calculation.
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➜ Read the full article on AOL here. |
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3: Senator King's Stand Strong for Medicare Act would cover fall-prevention equipment like $11 bath mats, grab bars — could save Medicare millions |
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(Image Credit: Shutterstock) |
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Senator Angus King (I-VT) and Rep. Seth Magaziner (D-RI) pushing Stand Strong for Medicare Act to make fall-prevention equipment reimbursable under Medicare Part B: Proposed legislation would cover bath mats (~$11), grab bars, handrails, shower chairs, other home modifications — King: "Medicare will pay for broken hip, but they won't pay for grab bar in your shower" — commonsense approach shifts from treatment to prevention, aims to ease financial burdens on healthcare systems and taxpayers. 14 million older Americans experience falls annually — average fall costs $62,521 in inpatient settings: January 2026 Fall Prevention Foundation report: bath mats reduce fall risk 50%, durable rubber mats 70% — 2023 JAMA study showed safety programs saved study sites $22M over five years — 2024 Injury Prevention study: healthcare costs for falls $80B in 2020 (majority paid by Medicare), up from $50B in 2015. King estimates $11 investment in prevention equipment could pay for itself in under a year for entire beneficiary population: If Medicare sends bath mats/grab bars to all beneficiaries, $100M+ annual fall costs would "drop significantly" — prevention approach more cost-effective than paying for fracture treatment, hospitalization, rehabilitation after falls — proposed legislation presented as "win-win" for beneficiaries and taxpayers. Don’t want to wait and take the risk? Everyone is urged to make the $11 investment to prevent an extended hospital stay and recovery. You can get your $11 bath mat here.
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➜ Read the full article from Newsweek here. |
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Here’s What You Missed on YouTube: |
Check out our new YouTube videos for Tuesday, July 14th. |
Home Repairs, Downsizing & Rent Help: What the New Housing Bill Means for Seniors |
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This newsletter is for information only. Always confirm your options directly with Social Security, Medicare, Medicaid, or a qualified advisor before making big decisions about your benefits. |
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