Connecticut House Bill HB05258

Connecticut 2017 Regular Session

• Introduced: 1/6/17
• Refer: 1/6/17

Caption

An Act Eliminating The Personal Income Tax On Pensions.

Impact

The proposed elimination of the personal income tax on pensions is expected to create a positive financial impact on retirees, allowing them to retain more of their income. Supporters of the bill argue that this move will not only improve the quality of life for many older residents but could also serve as a strategic incentive for retirees considering moving to or remaining in the state. By lowering the overall tax burden on pensions, the state could become more attractive to potential residents who depend on fixed incomes during retirement.

Summary

House Bill 05258 is a proposed act aimed at eliminating the personal income tax on pensions in the state. The bill, introduced by Representative Harding, is specifically designed to amend chapter 229 of the general statutes, reflecting a policy initiative to provide tax relief for retirees and to promote the financial security of individuals receiving pension income. By removing this tax obligation, the legislation seeks to enhance the disposable income of pensioners and recognize the significant contributions they have made to the state’s economy during their working years.

Contention

While the bill presents a favorable outlook for retirees, it could raise concerns regarding the state's revenue. Opponents may argue that eliminating the personal income tax on pensions could significantly diminish state tax revenues, potentially impacting funding for essential public services. There is a debate about whether such tax breaks for pension income are justifiable given the need for state funds in other areas, such as education and healthcare. Critics might also express concern about the equity of the tax policy and its implications for non-pensioners who do not receive similar benefits.