An Act Concerning A Phase-out Of Income Tax On Pension Income.
If enacted, HB 05019 could notably affect state revenue, as it involves eliminating a source of income that contributes to the state's budget. Legislators in support of the bill argue that by offering tax relief to retirees, the state could attract more senior residents and pension recipients, thus bolstering local economies. However, this potential gain in population and economic activity must be weighed against the loss of tax revenue that could impact public services and funding for various state programs.
House Bill 05019, proposed in the Connecticut General Assembly, seeks to phase out the personal income tax on pension income. The intent of this legislation is to provide significant tax relief specifically aimed at senior citizens, thereby enhancing their financial situation. By eliminating taxes on pension income, the bill aims to create more favorable conditions for retirees, aligning Connecticut's tax environment with that of other states that already offer similar benefits.
The introduction of this bill was met with a mix of support and concern. Proponents argue that phasing out the tax will significantly benefit seniors and could make Connecticut a more attractive place to retire. On the other hand, critics worry about the long-term implications for state funding, specifically how the loss of income tax from pensions could necessitate budget cuts or tax increases in other areas, impacting the wider community, including those who are not retirees.