Connecticut House Bill HB05089

Connecticut 2014 Regular Session

• Introduced: 2/11/14
• Refer: 2/11/14

Caption

An Act Concerning An Exemption From Personal Income Tax For Pension Income.

Impact

If enacted, HB05089 would fundamentally alter the state's tax structure by eliminating taxes on pension incomes. This change is expected to benefit a substantial number of retired individuals and could lead to increased disposable income for this demographic. Advocates of the bill argue that this measure will not only provide essential support to seniors but also contribute to economic vitality by potentially encouraging spending among retirees within the state.

Summary

House Bill 05089 proposes an exemption from personal income tax on pension income in the state of Connecticut. The bill aims to provide financial relief specifically targeted at senior citizens who rely on pension income as a primary source of their funds during retirement. This legislation is intended to enhance Connecticut's competitiveness as a state, particularly in attracting and retaining older residents who may choose to relocate to states with more favorable tax policies regarding retirement income.

Contention

However, there are points of contention surrounding the bill. Critics may argue that while the tax relief could benefit seniors, the exemption could lead to decreased revenue for state programs and services that support a broader range of constituents, including the young and low-income families. There are concerns about the long-term sustainability of state revenue, as exemptions can create gaps in funding essential services. The debate may also include discussions about who benefits most from the tax changes, and whether it adequately addresses the financial challenges faced by all residents, not just a subset.