Will Minnesota Eliminate Taxes On Social Security Benefits?
MINNEAPOLIS (WCCO) -- Minnesota is one of just 12 states that taxes social security benefits.
Republicans have long led the charge to repeal that tax.
Minnesota Republicans are arguing that if ever there was a year to eliminate taxes on social security income, this is it. Minnesota, after all, has a $9.25 billion budget surplus. But the push to at least partially roll back that tax is even getting some support from Democrats.
In their tax bill, House Democrats are proposing eliminating taxes on social security income for those earning less than $75,000 a year. While Democrats have traditionally argued that the social security tax only hits high income individuals, a Minnesota House Research study indicates that's not true. The study found that 62% of Minnesotans filing taxes do pay taxes on social security income. The study also found that couples earning $58,000 or more were paying taxes on their benefits.
Senate Majority Leader Jeremy Miller was a guest on WCCO Sunday Morning.
"I hope this was the year. It is a priority for Republicans to eliminate state income taxes on social security benefits," he said. "We've been working on it for a number of years. With a $9.3 billion budget surplus, now is the time to provide seniors this much-deserved tax relief."
Minnesota collects about $430 million a year in taxes on social security income. Earlier this month, six DFL Senators voted for the Senate Republican tax plan in part because it calls for eliminating taxes on social security income.
Among the 38 states that do not collect social security taxes are our neighbors, Iowa, Wisconsin and the Dakotas.
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