"Sometimes us taxpayers feel like beggars just for asking for what is rightfully ours..."
Well, the battle is now joined. Besides the Governor, the Senate, and the House all having their budgets out in the open, the Republican led House published how they would cascade the surplus (and future taxes) back to the taxpayers. I looked it over, and it looked good - mostly very good. Now comes the tough part. The part that will make or break it.
One of the things the Democrats have always been better at is putting a face on a story. And it is usually a sob story. Here is a chance to do the same thing - just not the "sob" part of it.
I will address the low fruit on the tree - state income tax on Social Security. This should be a no brainer. However, the Left will come out firing on this one. Statements like, "how much it cost" and "the state really can't afford it". If the Republicans are smart, they can easily paint this as a nonpartisan, no-brainer issue. It is not just the Republicans who are being skewered by this most unfair tax - it is the Democrats, the Greens, the Independents, the politically agnostic as well.
We need to give real world examples in dollars and cents on how much money this tax cost an individual senior living on fixed income. For example, if a seniors effective tax rate is 6.875%, and that person received $17,400 in Social Security benefits for the year, the state tax owed would be $1,196.25. If the Social Security benefit receiver is married, and the spouse has the same benefits, it would cost the couple almost $2,400 a year. That is $200/month that could be used for food, the ever escalating insurance costs, or ever escalating utility costs.
The same is true for Minnesota veterans who are receiving military retirement. Those taxes should also be tossed. Again, this affects veterans on both sides of the aisle. Put a face on this issue. Our veterans, while serving, were not getting rich. For many it was a struggle. To tax them on the parsimonious retirement they are receiving is nothing more than unfair. Talk to retirees in Wisconsin - they don't pay state taxes on Social Security nor military retirement. Talk to people in South Dakota - they don't pay state taxes on any type of retirement.
One more thing in the Republican proposal that I would have liked to have included. And it addresses a problem which is right around the corner. Make Long Term Care insurance premiums deductible. Not part of them - all of them. If Long Term Care becomes too hard or too expensive for the average person to get, many will just "spend down" and go on Medicaid should they be in a long term care facility. And that will be a backbreaker for any state.
Anyhow, those are my thoughts this morning. We need to be smart, we need to be nimble. The other side is better and more experienced that we are. We need to do it right this time.
People are now living longer. it is possible that people will outlive their life's savings and assets just to sustain their health and long term care needs during retirement. www.ltcoptions.com/long-term-care-insurance stressed that the chances of not needing long term care are slim. Studies revealed that About 70% of people aged 65 and above are estimated to require long-term care services. Meanwhile, about 40% of people between the ages of 18-64 years old might also require this type of care.
ReplyDeleteTherefore it is better for all of us to have a policy. let's hope that this will be included in the proposal, because this will be soon required in all our retirement plans.