May 15, 2007

Assessing the Income Tax Treatment of Social Security Benefits


Early in the 2007 legislative session Missouri Governor Matt Blunt and House Speaker Rod Jetton made eliminating the state’s personal income tax on Social Security benefits a priority. In May, the legislature passed a bill that would eliminate the income tax on Social Security benefits for some better-off seniors. This bill is currently awaiting Governor Blunt’s signature. This policy brief describes how Social Security benefits are currently taxed and discusses alternatives for tax reform that are better targeted to fixed-income Missouri retirees.

Read the Full Report (PDF)