Gov. Blunt signs law granting tax break on Social Security benefits

JEFFERSON CITY, Mo. (AP) -- Missourians will be getting a tax cut on their Social Security benefits.

Gov. Matt Blunt is signing legislation that would gradually exempt most Social Security benefits from state income taxes, starting this year and being phased in through 2012.

The legislation contains a similar tax break for some people who opted out of Social Security for their pension systems. That includes teachers, firefighters, police officers, military personnel, federal employees and railroad workers.

Once it's fully phased in, the tax cut is estimated to cost the state $154 million.

Blunt and House Speaker Rod Jetton are touring the state today to promote the bill signing.