Nebraska Panhandle News

On July 31, 2024, U.S. Senator Pete Ricketts (R-NE) expressed support for former President Donald Trump's recent call to eliminate federal taxes on Social Security benefits. Ricketts issued a statement reiterating his stance on the issue, referencing legislation he introduced last year aimed at ending these taxes.

"I couldn’t agree more with President Trump that our seniors shouldn’t be taxed on Social Security. That’s why I introduced the Social Security Check Tax Cut Act to end federal taxes on Social Security. We did it in Nebraska when I was Governor. Washington should do the same!" said Ricketts.

The Social Security Check Tax Cut Act proposes a phased elimination of federal taxes on Social Security benefits, starting with a 10% reduction in the first year and increasing incrementally by 10% each subsequent year until all such income is tax-free by 2033. This legislative effort mirrors a successful initiative led by Ricketts during his tenure as Governor of Nebraska, where state taxes on Social Security benefits were gradually eliminated through LB873 signed into law in 2022.

Since its inception in 1935, Social Security has been integral to the retirement plans of many Americans. According to data from the Social Security Administration, nearly nine out of ten individuals aged 65 and older received benefits as of June 30 this year. Initially untaxed, Social Security benefits became partially taxable in 1983 under legislation that made 50% of the benefits subject to tax. This was further expanded in 1993 when President Bill Clinton signed a bill increasing the taxable portion to 85%.

Further details and text of the proposed bill can be accessed here.