West Virginia has already eliminated taxes on Social Security benefits for some of the state’s residents. But could a more sweeping change be coming soon?
As of now, lower and middle-class income individuals pay no tax on their benefits. For single filers making less than $50,000 or joint filers making less than $100,000, their retirement income is safe from the burden of taxation.
But a new measure could extend this policy to all of the state’s beneficiaries. This new act would go into effect over the course of a few years. While it would reduce the state’s revenue by tens of millions on the surface, this money could come back into the economy in other ways. Remember, more money in seniors’ pockets means a better economy overall.
As of now, the vast majority of states don’t tax their retirees’ benefits. Should West Virginia join them? Should other states? Share your thoughts, then follow us on Facebook and Twitter.
