Yesterday, U.S. Senator Pete Ricketts (R-NE) introduced two tax cut bills aimed at assisting retired Americans, particularly seniors and veterans, in retaining more of their income. The bills presented are the Social Security Check Tax Cut Act and the Tax Cuts for Veterans Act.
Ricketts emphasized during a conference call with Nebraska media that “Social Security and veterans’ benefits should be completely tax-free.” He stated, “These aren’t government handouts. They’re benefits people have earned. Seniors have paid into Social Security for decades. Veterans have given years of service to protect our freedoms. We should not be double-taxing them.”
He described his legislation efforts as focusing on “fairness, common sense, and keeping promises to seniors and veterans.” According to Ricketts, the bills aim to increase retirement income, allowing seniors and veterans to retain more of their earnings.
In a detailed explanation, Ricketts shared the historical context of Social Security taxation. He noted that federal taxation of Social Security benefits began in 1983 and by 1993, extended to 85% of those benefits. He proposed phasing out the federal tax on Social Security benefits, similar to the state-level approach taken in Nebraska.
Ricketts said, “It begins with a 10% cut in year one and grows to 20% in year two. Congress can continue phasing out taxes by 10% per year and make Social Security income tax-free by 2035.”
The second piece of legislation, the Tax Cuts for Veterans Act, aims to make military retirement pay tax-free at the federal level. Ricketts highlighted past success with similar state legislation, stating, “In 2021, I signed LB387 into law, eliminating state taxes on military retirement benefits in Nebraska.”
He underscored the potential savings for military retirees, noting, “Under my bill, they could save over $6,000 per year. That’s real money to cover groceries, gas, housing, or other rising costs.” To emphasize the commitment to veterans, Ricketts quoted John F. Kennedy, saying, “Honoring our veterans isn’t just about words—it’s about action.”
Ricketts concluded his remarks by saying, “I’m proud to lead this effort, and I look forward to working with my colleagues to get this done.”
