Connecticut House Bill HB05213

Connecticut 2012 Regular Session

• Introduced: 2/21/12
• Refer: 2/21/12

Caption

An Act Eliminating Personal Income Tax On Social Security Income.

Impact

If enacted, HB 05213 would amend chapter 229 of the general statutes, which currently imposes personal income taxes on Social Security income. This change could lead to a substantial decrease in state revenue generated from this tax, necessitating financial adjustments or compensatory measures be taken by the state government. However, supporters claim that the potential increase in the senior population and associated economic benefits may offset the revenue loss through heightened spending in local economies.

Summary

House Bill 05213 aims to eliminate personal income tax on Social Security income in Connecticut. The primary objective of this bill is to provide significant tax relief to senior citizens, who are often on fixed incomes. By removing the tax burden on Social Security benefits, the bill seeks to enhance the financial well-being of retired individuals living in the state. Proponents of the bill argue that such a move would also make Connecticut a more appealing place for retirees, thereby encouraging them to remain in or move to the state.

Contention

Despite its potential benefits, HB 05213 has faced some opposition. Critics argue that eliminating taxes on Social Security income could disproportionately affect state funding for essential services. They express concerns that the bill may lead to budgetary shortfalls and hinder the state's ability to invest in areas such as education and public safety. Additionally, there is a broader discussion about tax fairness and the implications of tax reductions for specific demographics at the expense of others.