North Carolina making money off the backs of seniors, disabled

 

By AARP NC Associate State Director Charmaine Fuller Cooper

As April 15th approaches, AARP NC continues to receive calls and emails from members alarmed by higher state tax bills.

These aren't people trying to avoid their responsibilities. These are older adults providing care for spouses with Alzheimer's, cancer survivors, people with disabilities and lifelong North Carolina residents.

They come from different backgrounds and walked down different paths to meet the same fate - large, unexpected medical expenses that threaten their daily financial and retirement security.

Then there are others who continue to call. More people who paid a lifetime of taxes and stayed or settled in North Carolina because of state retirement income deductions that helped stretch their retirement savings so they could remain independent and self-sufficient as they age.

In 2013, North Carolina State Legislators implemented sweeping tax reforms that took effect in the 2014 tax year. The reforms decreased corporate taxes, created a flat personal tax rate and increased the standard deduction for single filers and married couples. At the same time, state medical deductions were eliminated completely along with private and government pension deductions and many North Carolinians - overwhelmingly older adults - are discovering increased state tax burdens this year.

As legislators await final tax revenues, one thing is certain. This year's state budget will be balanced off the backs of seniors and persons with disabilities. AARP believes the money a person spends to maintain a healthy lifestyle -- within reason -- shouldn't be taxed. That could mean no tax on the money spent to pay for caregivers, health care, and necessary medical equipment and supplies.

The two most important deductions to North Carolina's seniors were eliminated by state legislators because of the 2014 state tax reform and their retirement income and medical expenses are no longer tax deductible in North Carolina. While legislators may have thought a higher standard deduction would protect seniors and families, legislative actions had different results and legislators now have an opportunity to address, correct and restore these deductions.

Tell your NC House and Senate leaders to restore tax deductions for seniors as AARP fights for complete restoration of medical and pension deductions to protect the financial and retirement security of North Carolina seniors and their families.