An Act Eliminating Personal Income Tax On Social Security Income.
The passage of HB 05159 would significantly alter the state's tax landscape, particularly benefiting elderly residents. By exempting Social Security benefits from taxation, the state would effectively increase the disposable income of many seniors. This change is expected to help alleviate some financial pressures faced by older residents, allowing them to maintain a better quality of life. Additionally, it could encourage more retirees to settle in Connecticut, potentially driving economic benefits through increased spending in local businesses.
House Bill 05159 is proposed legislation aiming to eliminate the personal income tax on Social Security income in Connecticut. This bill, introduced by Representative Shaban of the 135th District, seeks to provide financial relief specifically targeted at senior citizens by removing this tax burden. The motivation behind the bill is to make Connecticut a more attractive state for retirees, thereby enhancing its competitiveness compared to other states that have already eliminated or do not impose taxes on Social Security income.
While proponents of the bill argue that it provides necessary tax relief and improves the state's appeal to retirees, opponents may raise concerns about its impact on state revenue. Eliminating income tax on Social Security could reduce the state’s overall tax income, potentially affecting funding for essential services. Critics might highlight that such measures could disproportionately favor wealthier seniors while neglecting broader fiscal responsibilities. The discussion surrounding HB 05159 underscores the ongoing balancing act between providing tax relief and maintaining sufficient state revenues to support public services.