Floor Debate Begins On Speed-Up Of Full State Tax Exemption For Social Security

     Nebraska lawmakers began floor debate Monday on speeding up implementation of a new tax exemption for Social Security income, letting recipients claim a full tax break a few years sooner. 

      The state tax on Social Security applies to individuals with adjusted gross income of about $44,000 or married couples filing jointly making $59,000. 

      A bill passed last year exempts 5% of Social Security for those filers this year, ramping it up to 50% by 2025. This bill ups that to 100% in 2025. 

      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 question whether it’s prudent to rely on recent state tax revenues, which they argue were bolstered by federal pandemic stimulus payments into the economy.