New bill aims to lift taxes on social security benefits
by
Jordan Shefte
Story Created:
Feb 9, 2012 at 5:56 PM CDT
Story Updated:
Feb 9, 2012 at 6:35 PM CDT
Nebraska is one of only five states that fully taxes retirees' Social Security benefits. It's a trend one State Senator wants to see change.
Some are saying that this tax is driving members of the elderly population out of the State. And since they play a key role in the economy, it's time to put that money back in their pockets.
For retirees living off of social security, every penny counts.
"Retirees live on a very limited fixed income," said Senior Living Administrator Paul Hamelink.
But, right now, a chunk of that social security check is being taxed by the State.
"As we were paying in we were taxed at that time also so it seems like a double dipping as far as we're concerned," said Good Samaritan resident Barbara Hinrichs.
Nebraska is one of only five states in the country that fully taxes retirees on their social security benefits. It's a statistic that doesn't sit well.
"Well, I hate it that's it's only one of five, it seems like you know we're kind of being picked on and all," said Hinrichs.
"We don't get all that much, we don't get raises very often, and we worked years for that, so I really don't think we should," said Good Samaritan resident Vivian Uden.
Paul Hamelink, Senior Living Administrator at Good Sam, feels that this tax could be driving retirees out of the state.
"A tax burden is always an issue, and when people are living on a fixed income, we lose people to places like Florida, they don't have a personal income tax, even South Dakota close by we compete with," Hamelink said.
It's why Senator Jeremy Nordquist is introducing LB 976 into legislature, which would eliminate the social security tax.
"Every dollar counts. Every dollar taxed is a dollar less that they have available just for living expenses, let alone to give into the local economy here," said Hamelink.
Doing away with the tax would, without a doubt, help retirees, but some have concerns.
"I've got my doubts they will do it because they smell the money and they think it's just, nobody will fight it," said Luther Uden.
But others are excited about just the possibility.
"Taking it away, that would be great, that would be great, wouldn't it Warren, taking away the tax on social security," said Vivan Uden.
"I would think that would be more fair," Marcia Maurer said.
Most Popular