Connecticut House Bill HB05075

Connecticut 2017 Regular Session

• Introduced: 1/4/17
• Refer: 1/4/17

Caption

An Act Eliminating Personal Income Taxes On Pension Income Earned By Taxpayers Age Sixty-seven And Older.

Impact

If enacted, HB 5075 would amend Chapter 229 of the general statutes concerning income taxation in the state. The removal of income tax on pensions for seniors would significantly affect state tax revenue, leading to discussions about budget adjustments and allocations in other areas. Proponents argue that this change is necessary to support an aging population and to incentivize residents to remain in the state during their retirement. The bill is positioned as a crucial step toward improving the financial security of the elderly.

Summary

House Bill 5075 aims to eliminate personal income taxes on pension income earned by taxpayers who are sixty-seven years of age or older. The intent of this legislation is to provide financial relief to senior citizens, allowing them to retain more of their retirement income. By removing this tax burden, the bill seeks to enhance the economic well-being of older residents, supporting them in their retirement years. This bill was introduced by Representative Ackert and referred to the Committee on Finance, Revenue and Bonding for evaluation.

Contention

There may be contested viewpoints surrounding HB 5075. Supporters highlight the importance of aiding retired individuals, particularly those relying solely on pension income. However, critics may raise concerns about the potential decrease in state revenue that could result from this tax exemption, fearing it might lead to cuts in vital services or increases in taxes for other demographics. The discussions surrounding the bill will likely focus on balancing fiscal responsibility with the imperative to support senior citizens.