An Act Eliminating The Personal Income Tax On Social Security Benefits.
The intended impact of HB 5725 includes allowing retirees to retain more of their Social Security income, potentially improving their financial stability. Advocates argue that this measure will help protect vulnerable populations, particularly elderly citizens, from impoverishment. By eliminating the income tax on these benefits, proponents believe that it would create a more favorable financial environment for retirees, allowing for increased spending and improved quality of life.
House Bill 5725 proposes the elimination of the personal income tax on Social Security benefits for residents. Introduced by Representative McGorty during the January 2017 session, this bill seeks to amend chapter 229 of the general statutes to provide tax relief for seniors and retirees who receive Social Security. The overarching goal of this legislation is to alleviate financial burdens on those who rely on these benefits as a primary source of income during retirement.
Notably, the bill may face opposition from those concerned about the implications for state revenue. Critics might argue that removing taxes on Social Security benefits could lead to significant shortfalls in state funding, particularly for programs that also support seniors. The balance between providing necessary tax relief to retirees and maintaining vital state services is expected to be a central point of debate, making the discussion around this legislation multifaceted.