Many Social Security beneficiaries in Missouri will benefit from a tax cut now signed into law.
House Speaker Rod Jetton (R-Marble Hill) pushed hard for the Social Security tax cut, arguing that the state shouldn’t tax retiree income. Jetton says the tax cut has been a legislative priority of his since he was first elected to the legislature.
Jetton had to compromise to get his bill through the Senate, where it stalled for eight weeks, leaving him to think it wouldn’t make it through the session. He whittled it down, agreeing to reduce eligibility to individuals on Social Security making up to $25,000 a year and couples making $32,000. The bill, HB 444 , does include public employees exempt from the Social Security system, such as teachers and firefighters. It also includes military pensioners.
The price-tag when fully implemented in six years will total $154 million dollars, but Jetton believes the state will get some back with increased spending from senior citizens as well as military retirees who decide to stay here.