A working government can help both young and old
Much attention — rightly — is focused on the need to improve the lives of children in New Mexico. That’s why so much of the state Legislature’s time is devoted to discussing public school financing and programs, early childhood education and, most of all, establishing a trust fund to pay for essential early childhood programs.
But, proving that good governance means accomplishing several tasks at once, the governor and legislators also are looking for ways to assist the elderly in New Mexico.
One proposal — to eliminate or reduce taxes on Social Security benefits — is gaining “traction,” House Speaker Brian Egolf told reporter Jens Gould recently.
That’s good news not just to senior citizens who have spent their working lives in New Mexico but to retirees seeking to relocate here. Yes, it will cost the state tax revenue. House Bill 77, one of several bills under consideration, would exempt up to $24,000 in Social Security income from tax a year. That’s a loss of $75 million to $80 million, according to the speaker. Other proposals being considered would eliminate taxation on up to $25,000 of Social Security income or remove it altogether.
Elimination is our preference if it is financially feasible. Social Security, after all, is a benefit taxed when workers were earning the income in the first place. To tax it a second time makes people pay twice. What’s more, New Mexico is one of just 13 states that choose to tax Social Security income, according to Think New Mexico, the nonprofit that wrote the report on the need to eliminate the tax. We should join the majority and let retirees keep more of their earned benefits. If legislators are worried about losing tax dollars, legalizing and taxing recreational marijuana would make reducing taxes in other areas possible.
But helping retirees keep more of their money is just one measure being discussed in the 30-day session that will affect senior citizens. Gov. Michelle Lujan Grisham, in her State of the State address, asked the Legislature to create the Kiki Saavedra Senior Citizen Dignity Fund to improve critical services for the elderly across New Mexico.
Under House Bill 225, the state would establish a trust fund with an initial $25 million allocation to the Aging and Long-Term Services Department to spend on such necessities as transportation, food, health issues and caregiving. There would be special emphasis on helping elderly veterans, seniors with disabilities and those living in rural areas. The fund is named in honor of Saavedra, a longtime state legislator who died last year.
By serving people where they live, people can remain where they are comfortable. They don’t have to pack up to live in a nursing home or move in with an adult child. With a ride to the doctor or extra meals delivered, their care and nutrition can be improved, giving them the independence so many elderly people want.
Expanding services that enable the elderly to age in place does just what the legislation calls for — ensures the dignity of seniors.
Reducing or eliminating taxes on Social Security income and expanding programs to help seniors maintain independence demonstrate that government, when it works, can work to improve the lives of citizens.