Connecticut House Bill HB05180

Connecticut 2014 Regular Session

• Introduced: 2/18/14
• Refer: 2/18/14

Caption

An Act Allowing One Hundred Per Cent Of Military Retirement Pay To Be Deducted From The Income Tax.

Impact

If enacted, HB05180 would significantly impact state tax revenue and the financial circumstances of veterans receiving military retirement pay. By allowing full deductions, veterans may see an increase in disposable income, thereby enhancing their ability to contribute to the economy. However, the reduction in taxable income could also result in decreased income tax revenue for the state, which may affect funding for public services and programs. Legislators would need to consider the trade-offs between providing tax relief to veterans and maintaining state revenue streams.

Summary

House Bill HB05180 aims to increase the amount of military retirement pay that can be deducted from an individual's income tax. Specifically, the bill proposes amending chapter 229 of the general statutes to allow a full deduction of one hundred per cent of military retirement pay, up from the previous fifty per cent. This change seeks to provide greater financial relief to military retirees, acknowledging their service and the unique financial challenges they may face after leaving active duty. The introduction of this bill is seen as a step towards recognizing and supporting veterans and their families better.

Contention

The bill presents notable points of contention among lawmakers and stakeholders. Proponents argue that providing full deductions for military retirement pay is a just reward for the sacrifices made by service members, promoting their financial well-being and stability. Critics, however, may raise concerns about the financial implications for the state budget and question whether similar tax breaks should be extended to all retirees or if there should be a more targeted approach to supporting veterans. The discussion surrounding this bill reflects broader debates on fiscal responsibility versus the necessity of supporting those who serve in the military.