Sat October 19, 2013
Neb. tax committee head predicts action on SSI tax
LINCOLN, Neb. (AP) — The chairman of a legislative tax panel is predicting that the group will propose changes to the way Nebraska taxes Social Security income.
Senator Galen Hadley said yesterday that he believes lawmakers on the Tax Modernization Committee will recommend action on Social Security income. Hadley says one possibility is raising the threshold at which Social Security income starts to be taxed.
Advocates for retirees and low-income residents have argued that Nebraska should join other states that phase out taxes on Social Security income. Nebraska is one of five states that tax the benefit to the highest extent allowed. Iowa is phasing out its tax on Social Security benefits, and Missouri has already eliminated the tax for most recipients.
Hadley's comments came after the committee's final public-input hearing in Lincoln.
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