Connecticut Senate Bill SB00048

Connecticut 2017 Regular Session

• Introduced: 1/11/17
• Refer: 1/11/17

Caption

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

Impact

If passed, this bill would significantly alter the state's taxation framework regarding personal income. Exempting Social Security benefits would not only impact the revenue collected by the state but also reflect a broader commitment to supporting retired individuals and families in financial need. This could lead to a more favorable environment for older residents, encouraging them to remain in the state and spend their income locally, which could have positive trickle-down effects on the economy.

Summary

Senate Bill 00048 proposes to exempt Social Security benefits from the personal income tax in the state. The purpose of this legislation is to provide financial relief to retirees and individuals receiving Social Security payments, effectively reducing their overall tax burden. By doing so, it aims to enhance the financial well-being of those who rely on these benefits as a primary source of income during retirement. The intent is to allow beneficiaries to retain a greater portion of their income for essential expenses, thereby improving their quality of life.

Contention

However, there might be notable contention surrounding this bill among lawmakers and stakeholders. Proponents argue that the exemption is a justified and necessary measure to support those who are often living on fixed incomes and facing rising living costs. Critics may raise concerns about the potential loss of state income revenue, questioning the sustainability of such an exemption. Lawmakers will likely need to grapple with balancing fiscal responsibilities with the need for social support for vulnerable populations.