Social Security recipients could catch a bit of a break under legislation moving through this legislative session.
Sen. Brett Lindstrom of Omaha sponsors Legislative Bill 738 which would tie the taxation of Social Security benefits to the rate of inflation, similar to the practice of other states.
“Our retirees provide immeasurable resources for our community,” Lindstrom tells colleagues. “They are speaking with their dollars and leaving Nebraska for border states who have either reformed Social Security or do not tax Social Security at all. We cannot afford our neighboring states to continue to profit off our losses.”
Yet, Sen. Paul Schumacher of Columbus sees a shifting tax burden, because of the political power of one class.
“The seniors are in a position where they have associations representing them,” Schumacher says. “They’ve got time to appear before the committee and they can plead a very good and worthwhile case. The people that are going to have to pay the bill are working.”
Indexing Social Security benefits to the rate of inflation would cost the state between $1.2 million to $1.3 million. It is estimated to affect approximately 330,000 Nebraskans.
LB 738 must pass two more legislative hurdles in the last few days of the legislative session to go to the governor’s desk.


