Connecticut House Bill HB05259

Connecticut 2017 Regular Session

• Introduced: 1/6/17
• Refer: 1/6/17

Caption

An Act Eliminating Personal Income Taxation On Pensions And Social Security Benefits.

Impact

The passage of HB 05259 would represent a significant shift in the state's tax policy, aimed specifically at benefiting senior citizens and those receiving retirement income. This change could potentially increase the disposable income available to retirees, allowing them to contribute more to their local economies. Such an initiative could also make the state more attractive to retirees considering relocation, possibly boosting the tax base through increased spending in other areas.

Summary

House Bill 05259 aims to eliminate personal income taxation on pensions and Social Security benefits for residents. Introduced by Representative Duff, the intent of this legislation is to alleviate the financial burden on retirees and encourage an enhanced quality of life for older citizens. By removing taxes on these essential income sources, the bill seeks to support the overall economic well-being of pensioners, thus promoting economic stability within this demographic.

Contention

While the bill presents notable benefits, it may also spark discussions regarding fiscal responsibility and the potential impacts on state revenue. Lawmakers and stakeholders may express concerns about how the reduction in tax revenue from pensions and Social Security would be offset, particularly in a state where public services and social programs may rely heavily on tax income. Opposition may arise from those who believe that tax relief should be more equitably distributed across all income sectors, rather than solely focusing on retirement income.