GOP leaders have been pushing for phasing out the state tax on social security income for many years, claiming it causes retirees to leave the state. They had some success in 2017’s special session omnibus tax bill which allowed for new subtractions for social security benefits. Democrats warn that such a large loss of revenue from a full exemption would damage future state budgets. Some support some tax relief for seniors, but thinks a complete reduction would create too large a hole in the state budget (an estimated $500 million per year). They support raising the income thresholds which haven’t changed since 1994. Exempting all who make under $60,000 a year would cost the state $15 million, but it is argued that a full exemption would benefit people with the highest incomes the most saying that the vast majority of the money would go to those making over $100,000 a year.
Elder abuse is another issue facing seniors and their families. Research estimates that 1 in 10 seniors are a victim of abuse, neglect, or financial exploitation. In 2016, the Minnesota Department of Health received 25,226 reports of elder abuse, but 97% were never investigated. This doesn’t include cases reported directly to law enforcement or those that go unreported. The number of unreported instances is estimated to outnumber those of reported instances. There are 82,000 Minnesotans in elder care facilities.
On May 9, 2018, the leaders of AARP of Minnesota, Alzheimer’s Association of Minnesota, Elder Voice Family Advocates, Mid-Minnesota Legal Aid, and Minnesota Elder Justice took out a full page ad in the Star Tribune imploring the Minnesota House & Senate to pass comprehensive legislation. They called for licensure of assisted living centers to ensure safe standards, protections against arbitrary discharges, protections against retaliation for families who speak up, an end to deceptive marketing practices that allow facilities to promise more than they can deliver, and legal tools for families to seek justice.
Elder Voice Family Advocates suspects that lobbying and cash for the nursing home industry is influencing legislators, especially rural legislators who are counting on help from owners of local elder care facilities for help in the coming election. The senior care industry is fighting legislation that requires facilities to be licensed and inspected. They have two dozen lobbyists patrolling the capitol and spent nearly $1 million lobbying in 2016 and 2017, a 56% increase from the previous legislative session. As a result, the 2018 combined health and transportation omnibus bills focused on reforming state practice rather than putting rules in place for elder care facilities.
Here is where the candidates stand on social security benefits taxes and/or elder abuse:
Jeff Johnson (R): Candidate Johnson would like to see Minnesota do away with social security benefits taxes.
Erin Murphy (D): Candidate Murphy voted against the 2017 omnibus tax bill which ultimately passed and allows new subtractions for certain social security benefits. Elder care was addressed in the passage of the 2018 combined health and transportation omnibus bill during which she gave an emotional speech imploring her fellow legislators to do more on the topic citing concern for her own 84 year old father who lives in an assisted living facility and is vulnerable to abuse and neglect.
Tim Pawlenty (R): Candidate Pawlenty is the only candidate to address this on his website. He says that Minnesota should stop taxing social security benefits. Ending elder abuse, neglect, and incompetent care will be one of his top priorities as governor. Complaints will be properly reviewed and safeguards will be put in place.
Tim Walz (D): Candidate Walz supports raising the income thresholds subject to social security taxes. He is a co-sponsor of the Social Security 2100 Act at the federal level which will provide a tax cut for 10 million social security recipients by raising the threshold on taxable benefits, if passed.
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