NE lawmakers plan to scrap Social Security income tax | News

0

(KMAland) — A bill to eliminate state taxes on Social Security benefits by 2025 is moving through the Nebraska Legislature.

Sen. Brett Lindstrom, R-Omaha, introduced LB 825 and pointed out that states like Florida and Texas are much warmer in the winter and don’t tax Social Security benefits. He said he views the measure as an important step in keeping retirees in Nebraska.

“Not only are they engaged in community service, philanthropy, but they want to stay with their children and grandchildren,” Lindstrom said. “And I don’t want it to be where the state is fiscally burdensome to force them to go to other states that don’t have them.”

Nebraska is one of 12 states that currently tax Social Security benefits. Last year, after some lawmakers worried about the loss of revenue, they approved a halving of benefit taxes by 2025.

The new law would completely eliminate the tax within the same time frame. LB 825 passed its first reading with a vote of 42 to nothing, and will have to clear the Appropriations Committee before it can get a final reading.

Lindstrom said the state can afford to put money back in the pockets of Social Security recipients because government spending has been kept at an average rate of inflation. He added that the economic forecast is strong based on earnings for the past 12 to 18 months.

“And we have over $400 million in revenue above that forecast,” Lindstrom said. “And because we’ve been prudent in our spending, it allows us to take steps to eliminate the Social Security income tax.”

Nebraskas age 50 and older made up just 34% of Nebraska’s population in 2018, but supported 566,000 jobs statewide and generated $33 billion in wages and salaries, according to an analysis by AARP.

Older Nebraskas also contributed more than $2 billion in unpaid care for family members.

Thank you for reading kmaland.com

At KMA, we try to be accurate in our reports. If you see a typo or mistake in a story, please email us at [email protected]

Share.

Comments are closed.