An Act Exempting Pension Benefit Income And Social Security Income From Taxation Under The Personal Income Tax.
If enacted, SB00379 would significantly affect state tax revenues by reducing the taxable income of seniors, which supporters argue is necessary for addressing the high cost of living and healthcare for retired individuals. Advocates believe that the bill will not only help seniors maintain their standard of living but also stimulate local economies as these individuals can redirect savings into community spending. This tax relief is expected to have a broad economic benefit, particularly in areas with significant senior populations.
SB00379, introduced by Senator Formica, aims to provide tax relief to senior citizens by exempting pension benefit income and Social Security income from taxation under the personal income tax. The bill is positioned as a measure to ease the financial burden on elderly residents, allowing them to retain more of their income as they age. By amending chapter 229 of the general statutes, the bill seeks to enhance the financial security of retirees who often rely solely on these sources of income.
While opponents may not be clearly documented in the files, it is anticipated that there could be concerns regarding the impact of this bill on state funding and budget allocations. Critics may argue that the exemption could lead to reduced revenue for essential public services, creating a potential strain on state resources. The challenge will be balancing the needs of senior citizens for tax relief with the state’s obligation to fund vital programs and ensure financial sustainability.