AARP: Walz Budget Proposal Doesn’t Go Far Enough for Minnesota Seniors

(KNSI) — Governor Tim Walz officially rolled out his 2023 One Minnesota budget, which includes tax cuts for many Minnesotans, including senior citizens, but one advocacy group says it doesn’t go far enough.

In a statement to KNSI, AARP Minnesota says it commends Governor Walz on the proposed One Minnesota budget that includes measures to support older adults and their family caregivers to address our state’s rapidly aging demographic. However, AARP is “disappointed the Governor’s budget doesn’t provide more Social Security tax relief for Minnesota retirees.”

The budget asked for a reduction in the Social Security income tax for 350,000 lower-income seniors. Many lawmakers on both sides have called for eliminating the tax. Minnesota is one of a handful of states still taxing Social Security.

“The positive state budget outlook presents enormous opportunities for Minnesota to be bold and make necessary investments to address the challenges of changing demographics and provide Social Security tax relief,” said Cathy McLeer, state director of AARP Minnesota. “Unfortunately, the Governor’s budget falls short on tax relief for Social Security beneficiaries. As only one of 12 states that tax these benefits, we are disappointed that the Governor did not fully exempt social security taxes.”

The group says taxing Social Security benefits undermines the purpose of Social Security, which was designed to lift seniors out of poverty – not to fund state government. “This is an issue our members care deeply about and one that they have been vocal about,” shared McLeer. “Social Security is a benefit they have earned and have paid for over a lifetime of work.”

AARP is urging lawmakers to pass and the Governor to sign into law other important policies not in his budget to rein in the high cost of prescription drugs, develop new retirement programs that allow workers to set aside wages on the job for a secure retirement, and Live Well At Home grants to help older seniors not eligible for Medicaid to receive care in their home.

Click here for a full listing of AARP Minnesota’s 2023 legislative priorities.

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