An Act Concerning Disproportionate Tax Liability Under The Personal Income Tax.
Impact
If enacted, HB 05411 would modify chapter 229 of the general statutes, which governs personal income tax regulations. The adjustments would specifically target the structural inequities that result in higher tax liability for lower and middle-income single taxpayers, potentially increasing disposable income for these individuals. The anticipated benefit is a more balanced approach to taxation that aligns with the financial realities faced by various taxpayers based on their filing status.
Summary
House Bill 05411 aims to address the disproportionate tax liability faced by single taxpayers within the personal income tax framework. Introduced by Representative Janowski, the bill seeks to adjust the tax rates, exemptions, and credits in a manner that promotes equity among taxpayers, particularly those belonging to the lower and middle-income brackets. The statement of purpose underlines the commitment to achieving a fairer taxation system that alleviates the financial burden on single taxpayers, potentially leading to a more equitable tax landscape.
Contention
While the bill has the potential to significantly influence tax equity, it may face challenges in garnering unanimous support. Opponents could argue that altering tax rates, exemptions, and credits might lead to complications in budgeting for state revenues, especially if exemptions for higher earners are eliminated or if substantial revenue is expected from certain taxpayer segments. The balance between ensuring fairness in tax liability and maintaining necessary revenue streams for state funds represents a notable point of contention surrounding HB 05411.