How much should Social Security benefits be taxed by the state — if at all? Three bills laid over by the House Taxes Committee Thursday take varied views on the question.
To be considered for inclusion in the omnibus tax bill, they seek changes that range from relatively minor – a $150 to $300 increase in the maximum subtraction for Social Security benefits — to eliminating taxes on Social Security benefits altogether.
Another bill laid over for possible inclusion in the omnibus tax bill – HF866, sponsored by Rep. Diane Loeffler (DFL-Mpls) – deals with another kind of subtraction: pension income for public employees who did not receive Social Security benefits, allowing state subtraction levels almost identical to those for Social Security benefits.
These include recipients of select pension plans for retired State Patrol, teachers and other public employees. Chris Parsons, president of Minnesota Professional Fire Fighters, said career firefighters are among those who do not receive Social Security and would be aided by the change in tax law.