Nebraska lawmakers begin debate on Social Security tax cut
Nebraska lawmakers began to debate a measure Monday that would speed up the implementation of a new tax exemption for Social Security income.
By News Channel NebraskaLINCOLN, Neb. (AP) — Nebraska lawmakers began to debate a measure Monday that would speed up the implementation of a new tax exemption for Social Security income, letting recipients claim a full tax break a few years sooner.
The measure would phase out Nebraska’s tax on Social Security income by 2025. Lawmakers approved the exemption last year but adopted a slower phase-in that would eliminate the tax by 2030.
The faster implementation was proposed after the state collected far more tax revenue than expected, leaving Nebraska with a general fund surplus of $412 million. Some lawmakers questioned whether it was prudent to rely on recent state tax revenues, which they argue were bolstered by federal pandemic stimulus payments into the economy.
Sen. Brett Lindstrom, of Omaha, said he sponsored the bill because Nebraska is one of 13 states that tax Social Security income, and many of Nebraska’s neighboring states do not.
Lawmakers adjourned for the day before reaching a vote.