Acceleration of Social Security Income Tax Phase-Out Passes First Reading

Acceleration of Social Security Income Tax Phase-Out Passes First Reading
Nebraska Legislature (Courtesy Photo)
January 25th, 2022 | Associated Press

LINCOLN, Neb. (AP) – A proposal to speed up the implementation of a tax cut for Social Security recipients has cleared a key hurdle in the Nebraska Legislature.

Lawmakers voted 42-0 to advance the bill through the first of three required votes.

The measure would phase out Nebraska’s tax on Social Security income by 2025, instead of by 2030 as originally approved last year.

The faster phase-out was proposed after the state collected far more tax revenue than expected, leaving Nebraska with a general fund surplus of $412 million.

Some lawmakers have questioned whether it’s prudent to rely on state revenues that have surged recently, arguing that tax collections were bolstered by federal pandemic stimulus payments into the economy.

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