Connecticut House Bill HB05055

Connecticut 2018 Regular Session

• Introduced: 2/9/18
• Refer: 2/9/18

Caption

An Act Concerning The Social Security Benefits Deduction From The Personal Income Tax.

Impact

If enacted, HB 5055 would positively impact many seniors and retirees who rely on Social Security as a primary source of income. By increasing the income limits for tax deductions, the bill is positioned to lessen the tax burden on eligible taxpayers, making it easier for them to retain more of their income. This adjustment could lead to significant financial benefits for individuals and families earning within the set thresholds, encouraging economic stability among retirees in the state.

Summary

House Bill 5055 aims to amend section 12-701 of the general statutes to increase the income limits for taxpayers to claim deductions on their personal income taxes for Social Security benefits. Specifically, the bill proposes raising the income threshold to $100,000 for single filers and $150,000 for joint filers. This legislative change is intended to offer additional financial relief to taxpayers receiving Social Security benefits, thereby enhancing their disposable income during retirement years.

Contention

While proponents of the bill argue that it represents a necessary step toward providing financial assistance to retired individuals, there are concerns regarding its potential impact on state revenue. Some legislators may worry that increasing deductions for higher income brackets could diminish overall state tax revenues, leading to debates about fiscal responsibility and the prioritization of state funding for other essential services. This negotiation between providing taxpayer relief and maintaining stable state finances is likely to be a major point of contention during discussions surrounding the bill.