I’ve been struck that’s not a big trope anymore like it was in the 80’s.
I read this a couple days ago.
I read this today.
It’s not quite the exact same subject, but it’s related. And my guess is a little targeted reform here on the taxes of old age SS recipients would go well toward the overall goal of progressivity and keep older people with a little money from moving… this seeming to be a real trend.
The Minnesota Department of Revenue estimates the GOP phase-out plan would affect 381,000 returns in the current tax year, with an average reduction of $213.
That ain’t much tax relief….
Rep. Paul Marquart, DFL-Dilworth said he supports some tax relief for senior citizens but thinks a complete exemption of Social Security income would put too big of a hole in the state budget.
“I haven’t talked to one senior citizen that wants to bankrupt their grandchildren’s future. That’s exactly what the Republican bill would do,” he said. “It would cost about $500 million a year when fully phased in.”
…that one could seriously object to.
Boy that’s some crap straw man hyperbole there. It’s $500M in a $40B annual budget that currently runs a tax surplus. There’s room to adjust, no one’s getting bankrupted, not that “bankrupted” is a precisely used term here.
“The vast majority of the money, if we exempt Social Security, goes to people making over $100,000 in income,” he said. “That would be investment incomes that relatively well-to-do people have, and they would be exempt from paying any income tax on their Social Security. Doesn’t seem like a good policy direction for us to go.”
Baloney. If a codger has a $100K in investment income and $40k in SS income, we’re talking about the say $800 (guess) in state personal income taxes that the person remits for the SS income. However many people like this there are, the relief they get ain’t meaningfully a ‘vast majority’ of dollars over the relief less affluent codgers get.
The good policy reason is to throw a bone to the snow birds, and it’s a cheap bone. DFL is being ideologically recalcitrant here.