Home Finance Special Bill Proposed Seeks To Eradicate The Social Security Tax For Seniors

Special Bill Proposed Seeks To Eradicate The Social Security Tax For Seniors

On Thursday, the Special Senate Bill 108 Was Introduced in the Legislature. According to the Bill, all the social security taxes will be eliminated for senior citizens. Senator Michael Padilla is the main sponsor of the Bill.

Social Security Tax Should Be Eliminated For The Seniors

All the social security benefits currently have federal taxation on them because it comes under the New Mexico Income Tax. According to KRQE, all aging leaders and long-term service departments find the Social Security tax very complicated. They claim that it is hurting senior citizens.

As per Cabinet Secretary for Aging and Long-Term Services, Katrina Hotrum-Lopez, Every Senior citizen must benefit from social security. A taxon social security is making them less independent. He also said It is going to pump more money into our economy. Such a boost to the economy could be appreciated and will ultimately help the nation. New Mexico is one of the 13 states that impose such a tax. Even the governor of the state was in favor of the Bill and mentioned that it would help the senior citizens by reducing the burden on them.

The Bill Still stands Controversial.

Although massive support from the state and the people was seen on the Bill, there are specific issues lined with eliminating the tax on social security. According to StarTribune, there are numerous bills that ask to eliminate any tax on social security for senior citizens, but if one looks on the bigger side, there is a minimal amount of tax imposed even on the lowest income retiree.

According to the Nonpartisan Minnesota House research staff, more than 92% of social security tax comes from taxpayers that have an income of at least $50,000. More than 72% of the people paying the tax have an income of $75,000. Hence the tax basically comes from people who are earning a bulk of money. Even a senior citizen earning such money can easily afford the tax. But as it looks, the Bill has a high chance of approval from the majority.