Connecticut Senate Bill SB00113

Connecticut 2018 Regular Session

• Introduced: 2/15/18
• Refer: 2/15/18

Caption

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

Impact

If enacted, SB00113 will notably alter the state's tax structure by removing Social Security benefits from taxable income. This change is expected to benefit a significant portion of the population, particularly retirees who may face financial difficulties. The exemption aims to enhance disposable income among seniors, potentially leading to increased spending within local economies as they have more funds available for essential expenses and services. Additionally, the bill may influence future tax policies concerning other forms of retirement income.

Summary

SB00113 is a proposed act that aims to exempt all Social Security benefits from the state’s personal income tax, regardless of the recipient's income level. The sponsorship of the bill by Senator Hwang signifies an intention to provide financial relief to retirees and individuals who rely on Social Security as their primary source of income. The primary objective of this bill is to alleviate some of the tax burden placed on seniors and disabled individuals, fostering a more favorable economic environment for these demographics.

Contention

The introduction of SB00113 has sparked discussions related to its long-term fiscal implications for state revenue. Critics may argue that while the intention behind the bill is commendable, the loss of tax revenue from exempting Social Security benefits could impact state services and programs funded by income taxes. Opponents may raise concerns about the ongoing sustainability of such tax relief measures, questioning whether the state can afford to forego this revenue while fulfilling its budgetary obligations. Ultimately, the bill’s discussion highlights a broader debate on how to balance the needs of vulnerable populations with the maintenance of essential state services.