The following is in response to the Sutherland Institute newspaper ad. In bold letters, the headline of the ad reads “Truth About the $160M Tax Cut.”
Again in bold letters, one of the boxes included in the ad has the headline “Eliminates the state tax on Social Security.”
Senate Bill 2001 includes the following calculation regarding the non-refundable income tax credit for Social Security income:
Total Social Security income included in adjusted gross income (AGI) multiplied by the state income tax rate.
The amount of the tax credit is then reduced by $0.025 per dollar that a taxpayer’s modified AGI (including Social Security and all other income) exceeds $24,000 for married filing separately, $30,000 for single filers or $48,000 for head of household or joint filers.
The truth is the 2020 Utah tax reform law does not eliminate the state tax on Social Security, unless total incomes are below amounts listed above for each filing status.
The truth is the Sutherland Institute should be embarrassed and sees the need to apologize for not being more truthful.
Dan Ascuena, South Ogden