An Act Exempting Social Security Income From The Personal Income Tax.
Impact
If enacted, SB00733 would amend chapter 229 of the general statutes to formally exclude Social Security income from the calculation of personal income tax. This change would likely provide economic benefits to those receiving Social Security, as it would increase their disposable income and potentially stimulate local economies by allowing these individuals to spend more on goods and services. Furthermore, by reducing the tax liability for Social Security recipients, the bill would promote fairness in the tax system for older residents who may have limited financial resources.
Summary
SB00733 is a proposed bill that seeks to exempt Social Security income from the personal income tax in the state. Introduced by Senator Kelly, the intent of the bill is to provide financial relief to individuals receiving Social Security benefits by removing the burden of state income tax on these funds. This legislation addresses an important financial issue faced by a significant portion of the state's population—older adults and retirees who primarily rely on Social Security for their income.
Contention
While the bill presents clear benefits for retirees and individuals dependent on Social Security, it could also lead to discussions regarding its fiscal impacts on state revenue. Critics may argue that exempting this source of income may result in a significant decrease in tax revenue, which could affect funding for essential public services. Proponents would need to address these concerns effectively, showing how the bill could lead to overall economic growth and stability despite potential short-term revenue losses.