CHARLESTON, W.Va. — A major committee in the House of Delegates passed out a bill that would eliminate taxes on Social Security income.
The bill next goes to the House floor, where it is likely to receive bipartisan support. Both parties have also expressed support for the bill in the Senate, too. And Gov. Jim Justice also made a priority of eliminating the tax on Social Security income.
Lower-income West Virginians were exempt from the tax already. This would eliminate its payment for the rest. State tax officials said about half of all Social Security recipients report some income on their tax returns.
Members of the House Finance Committee asked how much that might cost the state in revenue. The answer from representatives of the state Tax Department is about $50 million a year.
“I fully support removing Social Security,” said Delegate Isaac Sponaugle, D-Pendleton. “You pay Social Security on your payroll when you’re working I think it’s long overdue that this tax needs to be eliminated. It’s principle. It needs to go.”
Delegate Larry Rowe expressed some concern that the $50 million could be an essential part of the budget puzzle later in the session. He worried about protecting state expenditures for senior centers and Meals on Wheels.
“As I look at the fact that we’re giving our higher-income seniors a tax break, I like it, but we have to realize there are tradeoffs,” said Rowe, D-Kanawha.
“I’m afraid this $50 million is going to affect our decisions on the budget, particularly what we have left over to give to seniors centers and to Meals. The folks who are needy aren’t getting the benefit on this.”
AARP West Virginia had several representatives in the House Finance Committee room. President Rich Stonestreet expressed confidence that the bill will move steadily through the rest of the legislative process.
“I think what happened in House Finance today is indicative,” he said. “We feel pretty good. We feel confident that it’s going to move forward. I don’t know of any serious opposition to it. I think the key here is that it’s bipartisan. Who would be against it?”