There's a bipartisan effort at the Statehouse to exempt more Vermonters from paying state income taxes on their Social Security benefits.
People with incomes under $50,000 and couples with incomes under $65,000 do not pay state taxes on their benefits right now — that's about half of Social Security recipients in Vermont.
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Wolcott Rep. Dan Noyes, a Democrat, said the income exemption levels need to be raised.
"You know, making sure they have the income to be able to provide for themselves, allow them to keep more of the Social Security to be able to live on," Noyes said.
Rep. Jim Harrison, a Republican from Chittenden, said many older Vermonters are under a lot of financial pressure, and that the current law could be out of date amid the shifting U.S. economy.
"When that was put in there several years back, 50,000 is not 50,000 anymore," Harrison said. "It might have been a good number. There is no CPI or inflationary index with that part of the tax law."
Because the tax raises roughly $75 million a year, Harrison said the plan would need to be phased in.
Vermont is one of nine states that taxes some Social Security benefits.
The House Committee on Ways and Means is set to review the bill.
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