kavonjones_cboproposal_longformv1_v2
===
[00:00:00] Kenneth, let's be real. These proposed changes from the CBO could change the lives of millions of veterans and not for the better. They're talking about cutting disability payments, taxing benefits, and even ending healthcare for access for veterans. And these aren't just. Theories. These are real proposals on the table right now.
So now if they're talking about reducing the disability benefits for, uh, veterans post-retirement age, that's gonna hurt a lot of veterans.
Hello and welcome to the Prepare to Compete podcast, where we talk all things VA benefits, real estate, entrepreneurship and more. And I'm your host, Kayvon Jones, civilian Patriot business strategist, and advocate for veterans everywhere. Hello, and I'm, uh, Kenneth Davis. [00:01:00] Uh, again, operation Iraqi, freedom Operation Enduring, freedom Navy Veteran, uh, former VA Raider, and also, again, advocate for veterans at all things va.
Uh, but again, uh, today's episode we have a very, very enlightened special that's empowering veterans about the truth and the truth of their benefits, which we're really excited for. All right, Kenneth and I definitely wanna get right into it and kind of talk about the most, talked about proposals and what does that actually mean for veterans?
Yes, yes. Uh, there's so many different, uh, things coming down the pipeline with the government, right. Uh, so again, everyone is a little bit on the edge, uh, whether if it's, uh, government employment, whether if it's government benefits, whether if it's just, uh, government support, right. So with that being said, I want everyone to understand that it is very, very important that when we talk about proposals, the proposal is coming from the congressional budgetary office, right?
[00:02:00] Uh, just please, I want to emphasize. Proposal, right Proposal. Alright, so I don't want anyone to get too up in arms. Uh, but now when we're talking about the CBO, uh, the CBO wants to cut approximately about 797 billion from the federal budget. Okay. Um, that's all the way between 2025 to 2024, which again, reducing that is gonna be able a major portion so they can, uh, obviously, uh, reduce the government's deficit.
So it's very, very important that our veterans and our nation heroes. I actually know about these proposals and how it affects their benefits. Oh, definitely. So now I know with these cuts, there's some different things regarding veteran household income and how they could be impacted regarding that. So could you explain that a bit more for us?
Yes, yes. So when we talk about, uh, these proposals, right, uh, they're looking to propose, uh, something called a means [00:03:00] testing. Um, basically again, uh, for veterans, uh, they're basing your benefits. They're gonna be basing the benefits based upon your household income. Okay. And what your compensation and what you can receive under this change.
Veterans would not be able to have a higher household income specifically over, uh, $170,000. Alright. Uh, annually. Annually. Alright. So, uh, with that being said, that could actually affect many veterans, uh, in that tax bracket. So when we talk about those, these reductions could see, uh, could. Actually reduce or eliminate the disability payments from veterans, which is very interesting because, uh, now we don't wanna penalize seems like we wanna penalize, uh, some of our veterans, uh, from, uh, you know, really making well of themselves.
And that that's a, that's a very significant impact. I think the government, uh, unfortunately, uh, would actually. Harm our nation's zeroes, right? Um, so again, [00:04:00] this is gonna be able to, this is gonna potentially put financial instability on people, anxiety, uh, cause additional stress for families, and it's already pretty, uh, uh, pretty intense out here as we speak today.
So, uh, with that veterans, uh, this is something that is proposed, um, in regards to really affecting your gov, your household income. So, uh, with that, let's always make sure that we're. Focused on being proactive with things. All right? So, uh, but again, we're gonna maintain that quality of life for veterans and we're gonna figure out how we're gonna get through this together.
No, definitely. 'cause you know, when you're talking about household income, right? You're looking at, and they're looking at it from a tax perspective, which, you know, we can do a whole segment on that already in terms of your tax filing and how you actually file can definitely, uh, contribute and kind of change some things there, whether you are W2, whether you are a business owner or you marry foul and joint or separate different things and.
What number are they [00:05:00] actually looking at? Right. Determining that. So you definitely wanna really understand because it can really create some financial instability, like you were saying, for families, uh, to have to deal with these different cuts. Yeah, a hundred percent. And not only the cuts, but we also have to take into account, uh, uh, take into account that, uh, with the, the instability of, uh, federal employment, right.
Uh, th that, are they going based upon a one year of annual taxes, uh, uh, tax reporting? Are they going based upon two years, three years? There's so many different, uh, you know, details that needs to be laid out of this on this, uh, the, the, this adjustment. Um, and also veterans need to be able to adjust themselves if this is something that is gonna be viable.
I know that the CBO has presented this before, but again. Let's stop, you know, uh, threatening veterans benefits, right? This is something that is, uh, hugely, uh, one again, giving to the most worthy people, um, but [00:06:00] also affecting some of the most vulnerable people. So, uh, again, you know, when we're talking about these cuts, I just really hope it's something that is just a proposal and, uh, doesn't able to be enacted well, no, absolutely right.
And I know you talked about, you know. Flaring up different things, right, when we're talking about anxiety, you know, depression, PTSD, unfortunately. And, um, you know, some of the cuts that they're looking at is actually ending, uh, individual unemployability, uh, at, uh, certain retirement ages. So, uh, can we get into.
Talking about that and what that could mean for our veteran community. No, most definitely. Truly. And that, that is a, that is a secondary budgetary proposal that they're looking towards, right? Uh, that the government's looking towards a secondary, uh, uh, uh, proposal of ending. Individual unemployability at a retirement age.
So right now, obviously the regulation states that again, that it is not gonna be based upon age, sex, creed, or anything of that nature, right? When we're [00:07:00] talking about individual unemployability, what is individual unemployability? Individuals? Unemployability is, uh, basically the disability that is gonna be able to get you to a hundred percent permanent total.
If. You cannot work if your disabilities have put you in a position where you are ineligible to maintain gainful employment. Alright, uh, gainful employment. Let's go ahead and make sure that we focus on that. Right now they're stating that. It's gonna be ending at retirement age. Well, we know that that many of our veterans are continuing to work long past retirement age.
So with that being said, we wanna make sure that we actually assist those veterans in not having to deal with this. Right. So again, what is retirement age? Retirement age for most of 67. Uh, 67 years of age. Okay. So now 67. I know plenty of veterans are still working at 67. Okay. I [00:08:00] know. I, uh, and, and it is not, it is not something that we're proud to be able to say, right.
But many veterans are still working, uh, well past the age of 67 to support them and their families. All right? So, and, and a lot of this, of that, that income that we talk about regards to social security and also, uh, individual unemployability benefits, well, those benefits are supporting that elderly veteran.
So, uh, to be able to reduce those financial resources is pretty dramatic. Now you definitely for sure. So, 'cause currently veterans could receive their individual unemployability benefits with their retirement pay. Yes. So they're able to receive both. Right. Um, so, so now at this point in time, you are able to receive your retirement pay and you are also able to receive your individual unemployability disability benefits.
Okay. But however, you must be at least 50% or more. [00:09:00] Okay. You must be at least 50%. Or more Okay. To be able to receive both. Alright. There is, there are some, uh, iniquities that go along with that, but we're not gonna kind of get into that because that's another segment that we wanna be able to provide for you guys.
However, what I will tell you is this, is that as long as you are receiving both, we want to make sure that we're protecting both assets and, uh, protecting one is kind of, uh, gonna be solidified and based upon retirement, uh, but another. It's gonna be based upon obviously these proposals here. Uh, definitely no good information there.
And you know, we were talking about our retired veterans. I know there are some other proposals, uh, regarding, you know, veterans actually applying after the age of 67 for their VA benefits. And, you know, I know with veterans for veterans, you know, we've even helped a lot of, uh, we've even helped a lot of.
Vietnam era [00:10:00] veterans that would definitely fall in that, uh, classification there. And they surely deserve their benefits, even though they waited for later in life to apply. Yeah. Yeah. This is, uh, this is this one. This one hits home, right? This one hits home. Uh, there's a, uh, the Vietnam personnel, listen, I salute you guys.
Uh, 10 tenfold. Okay. Uh, because you have to understand when we're talking about Vietnam veterans, it's a special group of veterans, uh, who, who, who really fought for the country and they went into a, a, a, a, how should I say? A, a, a place that was unknown. Not only unknown, however, with this foreign land, they were fighting continuously.
And these are some really, really strong veterans that I, I really tip my hat to. Uh, majority of those veterans are, are really strong-willed and understand who they are. [00:11:00] Okay? Uh, but now with that being said as well, now when we're talking about the Department of Veterans Affairs, uh, department of Veterans Affairs, they're always working towards getting better.
Right. But during that timeframe, we must understand that the Department of Veterans Affairs, a lot of denials were happening on a regular basis. We also have to understand that PTSD wasn't a hugely widely understood, uh, issue. So. Now many veterans were denied their benefits, not under not understanding what's being shellshocked, not understanding, uh, why are you having these, uh, uh, tropical illnesses, right?
Uh, what you could be service connected for. And uh, also what's happening with Agent Orange exposure. So now if they're talking about reducing the disability, okay, the disability benefits for, uh, veterans post-retirement age. That's gonna hurt a lot of veterans. [00:12:00] Okay? And again, by reducing those benefits by 30%, and that's what they're proposing to reduce the compensation to start receiving, uh, again, by 30% after retirement age.
These are the most vulnerable people in our community, right? Like once you reach a certain age, they're, they're, they're vulnerable. Uh, you get a little bit more vulnerable. So now with that being said, uh, we wanna make sure that we're protecting that community. All right. Um, so with that being said, that would disrupt.
Again, their financial plans and their financial retirements and how they're sitting in their, in their lives. So, uh, that's something that's being proposed as well, which again, it's totally unfortunate. Uh, but again, you know, uh, we want to be able to reduce the deficit. Uh, but at what cost? At what cost?
These, these, these, these are the heroes that have served our country, have continued to fight, and that is continuing to fight for our country and our liberties on a regular [00:13:00] basis. So please, let's, let's really figure this out. Okay. Definitely. Now, you know, when we talked about veteran status, you know, we're talking a lot, uh, right now about veterans who retire from service, right?
Uh, veterans who've, you know, of course served 20 years or more. And of course to get their actual disability pay with the retirement, as you mentioned, has to be 50% or more. Uh, and now there are a lot of veterans who serve their enlistment, whether it's four to six years or they may even kind of re-up and do, um, two enlistments and different things and have anywhere between the four and 12 years of service, and they are still service connected and they may be rated.
You know, lower than, uh, 50%, but right now you're still able to receive service connected benefits in that 10% increment. Right. And now I'm hearing there's some different [00:14:00] changes that would change that system. Can you, uh, break down, uh, those changes for us? Yes. Yes. This one is, uh, very interesting to me.
Right. So when we're talking about, uh, disrupting, uh, the eligibility for disability benefits lower than 30% or below, right, uh, 30% or below. So basically you're not gonna be able to receive any disability compensation if you're 30% lower. Okay? This is what the CBO is suggesting. There are so many disabilities that are out there that is, uh, being affected on a regular basis, that does not equate to a, a, a 50% rating, a 40% rating, a 60% rating.
Okay? We understand the VA math, and if you don't understand, you can always go look at one of our videos prior to be able to get a little bit more understanding of what the VA math entails. But when we're talking about a low disability rating, that is going to affect some of our veterans who are essentially being [00:15:00] affected over time, but is not get gotten to the point of substantially needing, uh, an increase that is going to, uh, uh, uh, uh, substantiate a 50% rating.
Why? If you rolled your ankle carrying a ruck sack going up a hill, why can't you receive that 10% rating? Because it's a chronic issue that you're gonna continue to receive. If you receive headaches on a regular basis, uh, that is not deliberating, why won't you receive again that, uh, 10 to 20%? Okay. Well, let me tell you, there are a lot of veterans.
That are, are formally affected by injuries that not, does not equate to anything that 30% or more. And they, again, just because they pushed through the pain, just because they are not going to the hospital on a regular basis, just because they don't complain on a [00:16:00] day-to-day basis, doesn't mean they're not affected, doesn't mean they did not fight for those benefits.
So please honor those veterans on continuous basis. And again, I think it, I think the CBOs should really take a suggestion about that. No, definitely, definitely. So yeah, there's so many proposed changes. And again, you mentioned prior to they're just proposed. So can you give us, uh, a history of some of the proposed changes, not necessarily the detailed ones that have been proposed in the past, but how this.
Process usually works because in the past you would hear about different proposed changes and they would never happen, right? Because taking benefits from veterans is like the last thing the government would normally want to do. So, uh, kind of talk to us about that history there. Well, kind of understanding the CBO and what they propose.
It is not just in regards to veterans benefits, right. Uh, the Congressional Budget Office, uh, their, their, their [00:17:00] ultimate job is to go make opinions about, uh, certain agencies and departments who are gonna reduce. In areas to make it more efficient. And what I mean by more efficient is cutting spending, right?
To reduce the deficit to be able to ultimately make the government, uh, spending more efficient. So, uh, these proposals or opinions that are rolled out doesn't necessarily mean that they're gonna go into legislation, uh, and kind of go up the pipeline to be, uh, to become law. But what it does mean is that there is an opinionated, uh, uh, agency out there that are trying to harm veterans.
So with that being said, we wanna make sure that if we're, if we're effectively, uh, kind of going down that pathway to understand that this agency could, okay, reduce the deficit, please, let's not harm the people that really have served, uh, uh, serve to make this country a free country. So that, that's pretty much how it works, right?
Uh, these proposals, uh, they're just that, [00:18:00] um, does it mean that it's gonna be suggested to be able to put in law? No, but. I can tell you right now as a veteran advocate here, uh, it really grinds my gears that that veterans are not more protected when we're talking about cer, uh, certain issues. So again, you know, the military has consistently fought for this country and made this country a free and safe one, and let's continue to do so.
So, again, when we're talking about the CBO, uh, we're not only talking about, uh, just veterans, however. Uh, let's focus on how to, uh, make it more efficient, but without harming the people that, uh, that really serve this country. No, definitely, definitely don't want to do that. So, again, there's more proposed changes here.
We want to really just educate you on those right. Not to strike fear or anything of that nature, but really just provide you with that education so that if any of these things do come down the pipeline to be legislation, you are [00:19:00] prepared, uh, for what's going on. That's what we're here to do. Prepare you at the Prepare to Compete podcast?
Most definitely. Most definitely. Now, definitely. So the next proposed change actually hits the world of healthcare. Okay. So they're talking about. Indie medical care enrollment for priority groups seven and eight. And now obviously, you know, CBO is doing a lot of different things here, but Kenneth, can you explain to our community here who exactly falls into those priority groups, uh, seven and eight, and how these changes could potentially impact those veterans?
Yes, yes. So when, when we're talking about this, I want everybody to understand. Uh, we're talking about a very vulnerable group of personnel, right? Uh, we're talking about ending medical care for a priority group seven and a priority group eight. Okay? Uh, there are different priority groups, uh, regardless [00:20:00] of how the VA works.
So if you go to the VHA and you're looking for hospital care, or again, any type of healthcare. You're able to go, you're gonna be assigned a priority based upon obviously income based upon service, connection, so on and so forth. Okay? Uh, but when we're talking about priority group seven and eight, so seven, that's gonna be a lower, uh, income threshold.
Who is non-comp compensable? Uh, right? And what does that exactly mean, right? You're not service connected, but you're agreeing to pay copays, uh, for your healthcare. Okay? Now, uh, when you're actually agreeing to pay copays. That's all fine and dandy, but now again, you're talking about any medical care for veterans.
Okay? And not only any medical care for veterans, you're also talking about any medical care for a vulnerable group of veterans who is a specific sector, okay? Who is a lower threshold, who is a lower income threshold, and that's again, uh, lowering that for priority group seven. [00:21:00] All right. And now when we're talking about any healthcare for the and, and penalizing the higher income group of veterans, right, and, and priority group aid, that is gonna be the higher income, but non-service connected, so.
When we're talking about that, how we need to make sure what we're stating here, what we're doing here, and ending healthcare is a very, very detrimental portion of, uh, harming our veterans at hand. I. Okay, healthcare is, uh, uh, so should be something that is, uh, provided for someone who's fought this, fought for this country on a regular basis, who've been exposed to hazardous noise, who's been exposed to, uh, uh, uh, surge certain, uh, toxic exposures, right?
Uh, age orange chemicals, uh, hazmat on a regular basis. Uh, JP five, JP four, um, uh, a flight deck. And so on and so forth. These things, again, uh, we are literally, uh, [00:22:00] exposed to these things on a regular basis. So if you're exposed to these things on a regular basis, there are gonna be some health complications, uh, that you are exposed to, so now you need to be taken care of.
And now for the CBO to propose ending healthcare, just to cut back on the budget for some of the most vulnerable. Okay. Group of veterans and also penalizing some of the most, uh, again, a more successful veterans in regards to higher income. And that doesn't necessarily mean, uh, you know, success when we're talking about income.
However, just to kind of, uh, put it in perspective that is gonna harm, uh, very large group of personnel know. So when we talk about these proposals, let's focus on areas that are not gonna really harm the vulnerable. And again, uh, any healthcare I think is, uh, is really one that, that, that gets under my skin there.
No, absolutely. Healthcare and taxes, right? Healthcare and taxes are critical issues. And [00:23:00] unfortunately, you know, for the veteran community here, they're also talking about changing some different things with the tax structure. Now, you know, as we may already be aware, uh, if you receive retirement pay. Uh, that is generally taxed, right?
However, your VA disability payments at any percentage has not been taxed. So now this is some controversial things happening here, Kenneth, uh, and should definitely cause some major concern. Uh, they're actually trying to. Shift the landscape to actually tax disability payments. Yes. Yes. Um, and, uh, that's a high alert alarm for a lot of veterans, right?
When we're talking about taxing, um, the benefits that's being offered, when we're talking about taxing those benefits, I. We have to understand, uh, that these benefits have been acted that, uh, to be tax free income, uh, for many veterans. And a lot of these veterans, uh, [00:24:00] rely on those benefits year after year after year to be able to take care of themselves and their families.
And some of those veterans are, don't have the ability to even work. Okay. So now to talk about taxing veterans, you know, you are taxing some of the most vulnerable group of personnel, uh, who can, who maybe can, and some who cannot work. Uh, because again, as we know, every scar isn't visible. Okay? And now we have veterans that are unfortunate, unemployed because of.
You know, the circumstances that the military is, has, has, has, has, has really exposed them to, so with that being said, taxing the income of the disability benefits is, is essentially reducing the amount of the ability to be able to take care of that veteran and their family. Wow. Okay. So again, having a financial securely security is gonna [00:25:00] potentially make sure many veterans are okay.
Okay. Uh, they already deal with a lot of stressors, uh, ongoingly, uh, chronic with due to chronic pain, due to, due to again, uh, uh, constant diseases and issues. Right. Uh, many, many veterans. Okay. Uh, however, having financial security in, in some vein of receiving their disability benefits, that's something that is gonna provide some type of solace for them and their family.
So please again, uh, these proposals, uh, I'm not gonna say that they could be, uh, absurd. What I'm gonna say, it's not gonna be able to, uh, go over well with the veteran community. That's all I'm gonna say. But, uh, with that being said, uh, with the CBO, as we understand that these are all proposals I want, I, I want everybody to understand that these are all proposals.
And as we advocate the veterans, I want you guys to understand that when we go into these offices [00:26:00] and go and speak to this personnel. We are always gonna put you guys at the forefront, and some of these proposals right here are not going to really fly well in those discussions. So as you as, as the veteran community knows.
We are here to serve and we're always gonna be here to educate and support. Absolutely. Kenneth, thank you for this wonderful information. And for veterans, they kind of wanna make sure that they're standing and know, right? Uh, they're staying updated on, uh, resources and different things on knowing what proposed change is becoming legislation.
Because, you know, as we kind of got into. April of 2025. A lot of veterans were thinking about, hey, tinnitus was going away, changes with sleep apnea, you know, changes with, uh, other conditions with mental health and different things. They were proposed and it was almost like step that those things were happening April of 2025.
However, even those [00:27:00] changes, uh, haven't been, um, really finite into going into legislation there. Yeah, yeah. They're still churning. They're still churning that will. Uh, again, it's coming down the pipeline, but again, you guys can always reference a video that we're gonna make sure that we put out for you guys when it drops.
Okay? Uh, we always like to, we don't like to put teasers out. We wanna make sure that we actually talk about the real stuff in real time, right? Uh, because again, this is actually gonna affect veterans, but we're also gonna be proactive and give you, uh, the, the, the things of what to do and what not to do.
Alright. Uh, but that's something that, again, we talked about before, uh, with these proposed changes and, you know, there is some churn in the legislation. But, um, again, with that official date, as we know, uh, once it's released, you guys will know first. You guys will know First in regards to the tinnius, the mental, and also uh, sleep apnea.
Great man, Kenneth, thank you for that. [00:28:00] Veterans. Stay tuned. Prepare to compete. We're out. Peace.
