January 24, 2019

West Virginia Center on Budget & Policy: Fixing the Social Security Tax Bill with a Bottom-Up Tax Cut for Working Families

ITEP Work in Action

The fact that so few West Virginians pay income tax on their Social Security benefits should tell us that this is not a middle-class tax cut. As the graph and analysis by the Institute on Taxation and Economic Policy (ITEP) below shows, the average tax change from eliminating the state income tax on Social Security is highest for those that make (on average) $245,000 at $554. Meanwhile, those with incomes between $36,000 and $56,000 (middle 20%) receive on average just a $34 tax cut.

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