Connecticut House Bill HB05229

Connecticut 2020 Regular Session

• Introduced: 2/20/20
• Refer: 2/20/20

Caption

An Act Eliminating The Qualifying Income Thresholds For The Social Security Benefits Deduction Under The Personal Income Tax.

Impact

If enacted, HB 05229 would result in significant financial relief for retirees and those dependent on Social Security as their primary source of income. The removal of income thresholds means that individuals at various income levels would qualify for deductions, thus potentially increasing their disposable income. This change may encourage financial stability among the senior population, a demographic often facing increased medical and living expenses.

Summary

House Bill 05229 proposes an amendment to the state's income tax laws specifically affecting Social Security benefits. The bill aims to eliminate the existing qualifying income thresholds that currently govern deductions available for Social Security benefits under the personal income tax. By removing these thresholds, the bill seeks to provide broader access to tax deductions for retirees and individuals receiving Social Security, allowing them to retain more of their income during a pivotal stage of life.

Contention

While proponents of the bill argue that it enhances the financial well-being of retirees, there may be concerns about the impact on state revenue. Critics might express that eliminating these income thresholds could lead to decreased tax revenue, which could affect budget allocations for other critical state services. The bill calls into question the balance between providing essential tax relief to vulnerable populations and maintaining sufficient funding for public services reliant on income tax revenues.