LINCOLN – Nebraska lawmakers are relying on older residents to help boost the state’s economic recovery.
Governor Pete Ricketts enacted Bill 64, which begins the process of phasing out state taxes on Social Security benefits.
Todd Stubendieck, state director of AARP Nebraska, said the move would help Nebraskans live their retirement independently and with dignity, and he said every dollar that goes into Nebraskans’ pockets will be spent locally on necessities. .
“And it’s going to have a huge economic impact, especially as we come back from COVID,” Stubendieck said. “And it’s important that we support our local economy. So I think that’s going to be a huge economic driver in our state, with those taxes coming back into our systems.”
Stubendieck noted that Nebraskans aged 50 and over account for 56 cents of every dollar of consumer spending in the state, in part because many have spent years saving for retirement and generate $ 50 billion in business. economic.
After some lawmakers raised concerns about the loss of revenue, the bill was revised to only cut state taxes in half over the next five years. Lawmakers will need to pass additional legislation to phase out the remaining share by 2030.
Nebraska is one of 13 states to tax Social Security benefits, and Stubendieck stressed that every dollar counts for families living on fixed incomes as the cost of drugs and other essentials continues to rise.
Stubendieck believes the compromise was the right decision and is happy that older Nebraska residents will soon receive real tax relief.
âThis bill was trying to be fiscally responsible to say, ‘We know we can do the first five years and do the first 50%, but we want to pause at this point and look at the situation and pass a draft. law to take the next step, âexplained Stubendieck.
In 2014, the Nebraska legislature exempted Social Security benefits from state income tax for married couples with incomes less than $ 58,000 per year and $ 43,000 for singles, an exemption which will continue under the new measure.