WASHINGTON–(KFOR Sept. 21)–A bill in the Senate from Nebraska Republican Senator Pete Ricketts proposes phasing out taxes on social security benefits nationally, just like he did as governor in Nebraska.
Ricketts said in a Wednesday morning teleconference call with reporters his Social Security Check Tax Cut Act is the first step in boosting the retirement income for millions of seniors in Nebraska and across the country. Ricketts says this was done by phasing in the tax cuts over a number of years.
“What I would like to do is start this phased in of reducing the tax of the 10%, 20% percent, start there, work to see if we can start getting bipartisan support,” Ricketts said. “And then, of course, one of the challenges is finding a vehicle that’s gonna move and put it on, too. So we’ve got a lot of work left ahead of us, to be able to reduce the taxes on social security the way I proposed it.”
In 1982, during the Reagan Administration, Social Security benefits income was ruled taxable as an earned benefit, like employer pensions, and there is a threshold that waives taxes for those with a lower income level.