LINCOLN, Neb. (AP) — Nebraska lawmakers are debating a measure that would speed up the implimentation of a new tax exemption for Social Security income, letting recipients claim a full tax break a few years sooner. 

The measure would phase out Nebraska’s tax on Social Security income by 2025. 

Lawmakers approved the exemption last year but adopted a slower phase-in that would eliminate the tax by 2030. 

The faster implementation was proposed after the state collected far more tax revenue than expected, leaving Nebraska with a general fund surplus of $412 million. 

Some lawmakers question whether it's prudent to rely on recent state tax revenues, which they argue were bolstered by federal pandemic stimulus payments into the economy.

LINCOLN, Neb. (AP) — Nebraska lawmakers are debating a measure that would speed up the implimentation of a new tax exemption for Social Security income, letting recipients claim a full tax break a few years sooner. The measure would phase out Nebraska’s tax on Social Security income by 2025. Lawmakers approved the exemption last year but adopted a slower phase-in that would eliminate the tax by 2030. The faster implementation was proposed after the state collected far more tax revenue than expected, leaving Nebraska with a general fund surplus of $412 million. Some lawmakers question whether it's prudent to rely on recent state tax revenues, which they argue were bolstered by federal pandemic stimulus payments into the economy.

Nebraska lawmakers begin debate on Social Security tax cut