Connecticut Senate Bill SB00060

Connecticut 2017 Regular Session

• Introduced: 1/12/17
• Refer: 1/12/17

Caption

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

Impact

If enacted, this bill could significantly reshape the financial landscape for retirees in the state. By exempting Social Security benefits from personal income tax, the legislation would provide a direct financial relief to seniors, potentially improving their quality of life and incentivizing more retirees to settle or stay in the state rather than moving to places with more favorable tax environments for retirees. This could lead to greater retention of seniors, who often contribute to the local economy through consumer spending.

Summary

SB00060, titled 'An Act Exempting Social Security Benefits From The Personal Income Tax,' aims to amend the state's income tax regulations by exempting Social Security benefits from taxation. This legislative proposal is designed specifically to support seniors and retirees, thereby encouraging them to remain in the state. The rationale behind the bill is to alleviate the financial burden on older residents who rely on Social Security as a primary source of income during their retirement years.

Contention

While the bill is rooted in a supportive premise for the elderly population, it may bring about some contention regarding its long-term fiscal implications for state revenues. Opponents may argue that exempting Social Security benefits could lead to a decrease in overall tax revenue, which could affect state funding for essential services and programs. Proponents counter that the potential economic benefits, such as increased spending by retirees and the retention of this demographic, could mitigate any losses in tax revenue over time.