Lueck's halt to state Social Security tax is a key component
ST. PAUL – Legislators are redoubling efforts to eliminate the state's income tax on seniors’ Social Security retirement benefits, with the unveiling the Caring for the Aging, Retiring, and Elderly (CARE) Act on Monday. The package aims to improve the quality of life for Minnesota's aging adults.
“I am extremely pleased one of the CARE Act's cornerstones is a bill I authored to end the state income tax on Social Security retirement benefits our seniors receive," said Rep. Dale Lueck, R-Aitkin. “My initiative passed the House in a comprehensive tax reform bill last session, but the governor and the Senate would not join our effort in reducing the tax burden on our seniors.
“Minnesota is one of only a few states that still collects state income tax on social security retirement benefits. It’s unbridled greed. Workers already paid state income taxes on the wages they earned, and then paid into the social security fund. There is no good reason for Minnesota to continue to stick it to their seniors by collecting state income taxes on social security retirement benefits when they draw out those dollars back out of the fund.”
Lueck said opening up a second front on this issue in 2016 intensifies the pressure on the Senate and the governor to move forward to phase out the state income tax on seniors’ Social Security retirement benefits.
"The good news is ending the state income tax on social security benefits continues to gain widespread support from citizens, various groups of stakeholders and legislators," Lueck said. "The Caring for the Aging, Retiring, and Elderly (CARE) Act will provide another important venue in which to engage the Governor and Senate in helping Minnesota’s seniors live more comfortably in what should be their golden years."
Other provisions of the Care Act address life insurance with the goal of helping younger Minnesotans protect their families by providing new flexibility in applying policy benefits to long-term care needs. Recently, 15 states have enacted similar legislation, and Lueck said he hopes Minnesota also takes advantage.