Phasing Out Social Security Taxes

Budget Caution in Social Security Tax Reform

According to MetroNews, West Virginia is considering a three-year plan to gradually phased-out Social Security tax cut income tax on Social Security benefits responding to Governor Jim Justice’s proposal. The House Finance Committee hopes to provide a tax break for seniors while being mindful of the state’s budget. The complete phased-out of Social Security tax cut is estimated to cost over $37 million prompting caution and a need to assess the impact of recent tax changes before implementing such a significant shift.

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Expanding Social Security Tax Relief

Building on a 2019 law that phased-out Social Security tax cut for most West Virginians over three years the new bill extends this exemption to those in higher tax brackets. Despite some delegates like Daniel Linville suggesting an immediate full exemption committee leaders advocate for a phased-out of Social Security tax cut. The governor’s $50 million tax plan which includes phased-out of Social Security tax cut exemptions, a state child and dependent care tax credit and expanded senior citizen property tax cuts aligns with AARP‘s support for reducing personal income taxes to attract and retain retirees in the state.