Two bills in the state House of Representatives would phase out Minnesota’s tax on Social Security income. Will Republicans choose to phase out the tax over ten years or five years?
The House Taxes Committee held a hearing Wednesday on two versions of the bill. One (HF9) would phase out the tax by 20 percent per year for five years. The other (HF213) has a 10-year phase out at 10 percent a year.
Under current state law, Social Security benefits are tax exempt for individuals making less than $25,000 and married couples making $32,000. Slightly higher incomes get as much as a 50 percent exemption.