States urged to curb senior tax breaks

The cost of income tax breaks for senior citizens — offered in at least 40 states — could double as a share of the budget in many states as baby boomers retire over the next two decades, a new study predicts.

In 20 years, when one in five Americans will be 65 or older, Kentucky, Mississippi, North Carolina and Pennsylvania will spend more than 7 percent — as much as most states spend on prisons — on senior tax preferences, according to the March 6 report by the Center on Budget and Policy Priorities, an advocacy group for low- and moderate-income people.

This revenue dent will occur just as age-related expenses, including Medicaid and state pensions, are growing, the study warns.

By Christine Vestal, Stateline.org Staff Writer

Full Story: http://www.stateline.org/live/ViewPage.action?siteNodeId=136&languageId=1&contentId=94035