”Targeting Tax Cuts for Seniors” examines the relationship between age and poverty and the affects of tax preferences given to citizens based on age.
By the year 2030, according to the Census Bureau projections, almost one out of every five Louisiana citizens will be over the age of 65. The increase in the number of elderly will result in rising costs and falling revenue for future state budgets. As the population ages, the cost of health care, state retirement pensions, and social services offered to the elderly will rise. Meanwhile, more Louisiana citizens will become eligible for age determined tax reductions, eliminating a portion of the state’s revenue.
This 2009 regular legislative session, several bills have been proposed to further reduce the amount of state taxes paid by individuals over 65, some of which fully exempt them from all state income taxation. Instead of sweeping tax exemptions for all individuals over 65 years, the state should consider using income based criteria to better target assistance to the low- and moderate-income citizens within this age group.
