An Act Eliminating The Personal Income Tax On Social Security Benefits.
Impact
If enacted, HB05062 would amend chapter 229 of the Connecticut general statutes, directly impacting the taxation of Social Security benefits. The removal of personal income tax on these benefits is expected to provide relief to a significant number of elderly residents, thereby potentially increasing their disposable income. This change could lead to greater financial stability for seniors, allowing them to better manage living expenses in their retirement years.
Summary
House Bill 05062 proposes to eliminate the personal income tax on Social Security benefits for residents of Connecticut. The primary aim of this legislation is to alleviate the financial burden on senior citizens in the state by allowing them to retain more of their income without the deduction of state taxes. By eliminating this tax, the bill seeks to support the elderly population, who often rely heavily on Social Security for their retirement income.
Contention
While the bill is aimed at supporting the senior population, there may be points of contention regarding its impact on the state's revenue. Critics may argue that eliminating this tax could result in substantial revenue losses for the state, which might affect funding for public services. Advocates, however, argue that supporting seniors through tax relief can stimulate economic activity as these individuals may spend their additional income on local goods and services.