Connecticut Senate Bill SB00173

Connecticut 2017 Regular Session

• Introduced: 1/18/17
• Refer: 1/18/17

Caption

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

Impact

The proposed exemption would have a significant impact on state tax laws, as it would amend Chapter 229 of the general statutes related to personal income taxes. By excluding Social Security benefits from taxable income, the bill would provide direct financial relief to retirees and enhance their disposable income. This adjustment in tax policy could contribute to a more favorable living environment for senior citizens, potentially influencing broader socio-economic dynamics within the state.

Summary

Senate Bill 00173 aims to exempt Social Security benefits from the personal income tax in the state. Introduced by Senator Flexer of the 29th District, this legislation is designed as a tax relief measure targeting individuals who rely on Social Security for their livelihood. The proposal reflects a growing concern over the financial burden that state income taxes impose on the elderly and retired population, allowing them to retain more of their income in retirement years.

Contention

While supporters argue that this bill promotes fairness and supports retirees, there are expected to be discussions surrounding its fiscal implications for the state budget. Critics may raise concerns about the revenue lost from the exemption, questioning whether this measure might require cutbacks in other essential services. Additionally, there could be debates regarding the long-term sustainability of such tax policy changes, especially considering the increasing number of retirees as the population ages.