Senate debates dropping social security tax

A tax break for elderly Iowans will be debated this evening in a key Senate panel. Senate Ways and Means Committee chairman Larry McKibben of Marshalltown says the bill would eliminate the state income tax on Social Security benefits. Today, elderly, single Iowans who earn more than 25-thousand dollars or more, and married couples with an annual income of 32-thousand or more must pay taxes on their Social Security. Iowa is one of only 14 states where income tax must be paid on Social Security benefits.Governor Tom Vilsack, a democrat, says the tax break is targeted to wealthy, elderly Iowans. McKibben says the tax break will keep those elderly Iowans from moving out of state to escape paying the tax. Republicans hold the majority of seats in the Iowa Legislature, and McKibben says the G-O-P will press the issue through, despite the democrat Governor’s opposition. The bill will come up for debate in the Ways and Means Committee at 6:30 this evening.