Did you know that Montana is one of only 12 states that still tax social security income?
Social security provides a basis for income security for over 172,000 Montana retirees. Yet Montana continues to burden our middle-class retirees with taxation on their hard-earned social benefits. If an individual Montana senior earns between $ 25,000 and $ 34,000 in Social Security income, half of that income may be taxable under Montana law. If a senior earns over $ 34,000, 85% of Social Security income may be taxable.
With inflation at its highest in 40 years and the prices of prescription drugs rising at an unprecedented rate with no end in sight, older Montanans living on fixed incomes are feeling the economic squeeze like never before.
Retired Montanans pay their fair share of taxes, including property taxes and taxes on other types of retirement income like pensions and 401ks. They have long contributed to making Montana’s economy strong and continue to do so.
For every $ 1 of social security benefits received in Montana, it generates $ 1.83 in economic output. Expenditure related to social security of beneficiaries, businesses and workers on goods and services generates $ 4.5 billion in economic output for Montana.
Within the last two years, Nebraska, North Dakota, Utah and New Mexico have either eliminated or reduced the amount of social security benefits that can be taxed. It is time that Montana also goes up by eliminating or reducing the taxation of these hard-earned benefits.
As work begins to ramp up to the Legislative Assembly in 2023, the AARP urges Montana lawmakers to carefully develop reform proposals that best help Montana’s middle-income retirees retain more of their hard-earned social security income while ensuring our state has the necessary revenue. to maintain essential services for elderly Montanans and their families.
Tax breaks for social security are a matter of justice for middle-income pensioners, and it is an investment in Montanan’s financial security in the years to come. We believe that Montana’s elected officials should not procrastinate any longer. It’s time to help our seniors and their families by eliminating or reducing the social security income tax.
AARP Montana Executive Council
Alex Ward, President, Billings
Sandy Bailey, pony
Marilyn Hamer, Black Eagle
Bea Ann Melichar, Billings
Rich Nason, Helena
Loraine Wodnik, Helena