Connecticut House Bill HB05917

Connecticut 2017 Regular Session

• Introduced: 1/19/17
• Refer: 1/19/17

Caption

An Act Exempting Social Security Benefits From The Personal Income Tax.

Impact

The potential impact of HB 5917 on state laws revolves around the modification of tax statutes concerning personal income. If passed, the exemption would necessitate changes in how income is reported and taxed at the state level. This adjustment could lead to a reduction in state revenue derived from income tax, notably affecting funding for public services and programs. Lawmakers will need to consider how to balance the financial implications of this exemption while ensuring that vital state services continue to be funded adequately.

Summary

House Bill 5917 seeks to amend the General Statutes to exempt Social Security benefits from the personal income tax. The bill's primary goal is to increase disposable income for seniors, who often rely heavily on Social Security as a key component of their retirement income. By removing this income from taxation, proponents argue it will significantly alleviate financial burdens on elderly residents, allowing them to maintain a better standard of living in their retirement years. The reform not only targets the financial well-being of seniors but also aims to be more equitable by preventing taxation on funds that are essential for their livelihood.

Contention

Notably, discussions surrounding HB 5917 may foreground differing perspectives on tax policy. Supporters are likely to position the bill as a necessary step towards enhancing economic security for seniors, particularly in light of rising living costs and inflation. Critics, however, might argue that such tax exemptions could disproportionately favor wealthier retirees and undermine the state's fiscal health. These discussions could lead to broader debates about the sustainability of state finances, equity in taxation, and the priorities placed on supporting specific demographic groups.