Connecticut House Bill HB05092

Connecticut 2014 Regular Session

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

Caption

An Act Concerning An Exemption For Certain Pension Income From Income Taxation.

Impact

If passed, HB 05092 would directly impact state revenue by reducing the taxable income from pensions for retirees earning below the specified threshold. Proponents argue that such a tax exemption would not only benefit retirees financially but also make Connecticut a more attractive state for retirees considering relocation. This could contribute to greater economic stability and potentially increase consumer spending from this demographic, which in turn may support local businesses.

Summary

House Bill 05092 aims to amend chapter 229 of the Connecticut general statutes to provide an exemption from income tax for pension earnings under one hundred thousand dollars. The intent behind this legislation is to create a more favorable tax environment for retirees, encouraging them to remain in Connecticut by alleviating some financial burdens associated with taxation on their pension income. This exemption is particularly significant given the increasing cost of living in the state, which can disproportionately affect fixed-income retirees.

Contention

During discussions, notable points of contention emerged regarding the potential impact on state revenue. Critics voiced concerns that this bill could reduce necessary funding for public services and infrastructure, arguing that the state needs all available revenue to support its aging population and to maintain essential services. Supporters, however, contend that attracting retirees could offset these losses by boosting the economy through increased spending, thereby mitigating any adverse impacts on state finances.