04-03-2025
No elimination of Utah's social security tax, says state budget chair
SALT LAKE CITY () — The puzzle over tax cuts during the 2025 legislative session is , and one of Utah's top budget chairs is now solidifying that the legislature will not eliminate the state portion of income tax on social security benefits — but will cut it some.
'There will be a tax cut on Social Security, but it will not be an elimination of the social security tax,' Sen. Jerry Stevensen, who chairs the powerful Executive Appropriations Committee (EAC) told reporters Monday.
A bill run by Republican Sen. Wayne Harper (R – West Jordan) that would eliminate that tax for seniors passed out of committee earlier in the day, but it was agreed upon that there weren't enough funds (about $144 million) to cut the tax altogether. The sponsor said ultimately, the cut would be made at whatever level the EAC budgeted for.
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Sen. President J. Stuart Adams (R – Kaysville) said the threshold for exempting people from the tax would be $80,000 to $100,000.
During the committee, Sen. Lincoln Fillmore (R – South Jordan) argued that the majority of retirees already don't pay the tax, and its elimination would only help about 20% of the state's seniors. He took issue with the fact that the wealthiest seniors would get the most help.
'Why would you prefer that the small minority of your most wealthy members get a very large tax cut instead of everybody in your coalition getting a tax cut — instead of leaving the vast majority with no help at all?' he said, pushing back on the AARP who spoke in favor of eliminating it.
Fillmore noted that if the legislature can raise this social security income cap and cut the income tax like they plan to do, that would help everyone.
Sen. Dan McCay took a harsher tone, saying the committee was moving forward a bill that consolidated wealth for people over 65, and he found it 'morally wrong.' Gov. Spencer Cox wanted the full repeal of the social security tax and called for it in his proposed 2025 budget.
In a lean fiscal year, the EAC had already set aside a total of $165 million for some sort of tax cut (which was supposed to go toward the cuts from Amendment A).
So far, a proposed income tax rate cut, expanding the child tax credit, and enacting a nonrefundable corporate and individual tax credit for businesses to provide child care would cost the state around $103 million. That means there's roughly $62 million left over for this social security tax cut.
'My commitment is whatever we get this funded at, that's what the bill will run as,' Harper said, arguing that the committee should pass the bill, but it will be changed later.
On Friday, the EAC outlined the state's roughly , but tweaks are still possible through Wednesday.
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