5 Retirement Policies of Tim Walz and How They Could Impact Retirees If Kamala Harris Is Elected in November
Written by
Kerra Bolton
Edited by
Chris Cluff
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Vice President Kamala Harris chose Minnesota Gov. Tim Walz as her running mate in the presidential election against former President Donald Trump.
Walz is currently serving his second term as governor of Minnesota and spent 12 years in Congress representing the state.
“Governors bring executive experience,” Jared Walczak said in an article for the Tax Foundation, a public policy watchdog. “They also bring policy records that are more concrete than those of legislators.”
GOBankingRates examined Walz’s public policy record as governor and while serving in Congress to reveal his retirement policies and how they could impact retirees’ finances if Harris is elected in November.
Social Security
Walz advocated for including Social Security tax relief in a $3 billion tax package he signed last year. The move provided tax cuts for older adults receiving Social Security in Minnesota. The tax cuts were part of Walz’s broader initiative to reduce the financial burden on retirees.
However, Minnesota is one of 12 states in the nation that tax Social Security benefits, which means older adults have less money in their pockets while living on fixed incomes and facing high inflation.
Taxes
Gov. Walz has a mixed record regarding tax relief.
“Under Walz, Minnesota became the only state to impose a surtax on the long-term capital gain income and other net investment income of high earners,” Walczak said. “Walz also signed legislation partially phasing out the benefit of standard and itemized deductions for high earners, and later had to sign legislation fixing a drafting error that accidentally reduced the standard deduction for all taxpayers in what would have been an unintended $350 million tax increase.”
However, Walz proposed providing one-time checks to Minnesota residents and tax cuts for Social Security recipients. The tax cuts targeted single-person households earning less than $75,000 and couples earning less than $150,000. Walz suggested paying for the tax cuts by increasing taxes for high-income earners.
Finally, Walz supported an initiative (the Senior Citizens’ Property Tax Deferral Program) that allows seniors with household incomes of less than $96,000 to defer a portion of their property taxes.
Pension Income
While conservative economists like the Tax Foundation would call Walz’s policies progressive, Minnesota is one of 35 states that do not allow exclusions, deductions or credits for any pension income.
Healthcare
Gov. Walz signed legislation earlier this year banning medical providers from withholding necessary care due to unpaid debt and prohibiting medical debt from affecting one’s credit score.
In addition, he signed legislation in 2020 lowering insulin costs for low-income patients. Nearly one in three people ages 65 and over have diabetes and often need insulin, according to the Centers for Disease Control and Prevention.
Walz supported policies to limit prescription drug prices and increase transparency in drug pricing to reduce healthcare costs for all Minnesota residents, including seniors.
Economic Stimulus
While serving in Congress, Walz supported the “Universal Economic Stimulus Act of 2008.” The law provided $600 tax rebates to individuals and $1,200 to married couples filing jointly. It also included Social Security benefits and compensation and pensions for disabled veterans.
Editor’s note on election coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. For more coverage on this topic, please check out 5 Economic Policies of Trump’s VP Pick JD Vance That Could Help Boomers Preparing for Retirement.
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