WV House Speaker Tim Armstead: It's Time To Roll Back Tax on Social Security Benefits

Guest Column by West Virginia House Speaker Tim Armstead
February 11, 2018

West Virginia has one of the largest number retirees in its population per capita in the nation. Our retired residents are the lifeblood of our communities. They volunteer in civic organizations, serve as elders in our churches, and inspire and train our youth.

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Yet West Virginia places one burden on its retirees that’s not found in other states.

West Virginia is one of only 13 states that taxes Social Security benefits. Under federal law, up to 85 percent of Social Security retirement income may be subject to the federal income tax, depending on the type and amount of the taxpayer’s total income.

Of the 13 states that do tax Social Security benefits, nine of them offer greater exemptions than that provided at the federal level. West Virginia is one of just four states – the others being Vermont, North Dakota and New Mexico – that fully tax Social Security benefits as they are at the federal level.

Of our surrounding states, neither Kentucky, Ohio, Pennsylvania nor Maryland tax Social Security benefits.

For a state like West Virginia, that has such tremendous respect for its elders, this is not right.

That’s why the majority caucus the House of Delegates is once again this year proposing to roll back this tax for our most of our seniors and retirees.

House Bill 4017, cosponsored by me and several other delegates, would begin a three-year phase out this tax on Social Security benefits for individual retirees who have less than $50,000 in total income, or married couples who earn less than $100,000.

Under this plan, beginning in 2019, 25 percent of current taxable Social Security benefits would be exempt. That will go up to 50 percent in 2020, and will be 100-percent in 2021.

This tax is unfair and burdensome in many ways.

Most of our retirees are struggling to make ends meet on fixed incomes. Cost-of-living adjustments have been small in recent years, and haven’t kept up with the increases in utility bills and other costs that are eating up more and more of our retirees’ income.

There are 460,494 West Virginians who receive Social Security benefits, and their average annual benefit is about $15,672.

About 30 percent of West Virginians rely on Social Security for 90 percent or more of their income; 57 percent rely on it for 50 percent or more of their income.

While we’ve had tough budget years recently, we’re starting to turn the corner in West Virginia. We want to do things that help those citizens who are truly in need.

These Social Security benefits are vital to help our citizens make ends meet, and we should lift this tax so our retirees can get the most benefit possible.

 

• West Virginia House Speaker Tim Armstead, R-Kanawha, represents the 40th Delegate District.