Posts Tagged ‘Social Security tax exemption’
“Giving Back” What You Don’t Have
The tax cut plan released by Senate conservatives last week is still short on details, but here is some of what we do know: it will cut taxes by $900 million, presumably over the course of the upcoming FY 2018-19 biennium. The key elements of the proposal include a phase-out of taxes on Social Security…
Read MoreThe High Cost of Fully Exempting Social Security Benefits
Fully exempting Social Security from the state income tax will result in a rapidly escalating state revenue loss and will have consequences that violate several principles of good tax policy. These and other aspects of plans to exempt all Social Security benefits were explored in a March 2016 House Research background paper. Using information from…
Read MoreHigh Income Households Win Big from Full Social Security Tax Exemption
Most of the tax relief resulting from the elimination of taxes on Social Security income will not go to low-income seniors who are living off of their monthly Social Security check, but to relatively high income households that are likely to have significant sources of other income in addition to Social Security. In fact, approximately…
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