Connecticut 2020 Regular Session

Connecticut Senate Bill SB00034

Introduced
2/11/20  
Refer
2/11/20  

Caption

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

Impact

The potential impact of SB00034 on state laws is significant, particularly in the realm of tax code adaptation and the financial landscape for citizens over the age of 65. By exempting these sources of income, the bill aims to reduce the tax burden on retirees, encouraging a more favorable economic environment for this demographic. However, it could also lead to a reduction in state revenue which may need to be addressed through adjustments in other tax areas or budget reallocations.

Summary

SB00034 aims to amend the state statutes by exempting Social Security benefits and pension and annuity income from personal income tax. This legislation is designed to provide financial relief to retirees and individuals relying on fixed-income sources for their livelihood, as it would effectively increase their disposable income. The bill clearly states that these provisions will apply to taxable years commencing on or after January 1, 2020, indicating a retroactive effect that could influence the financial planning of many residents in the state.

Contention

While the bill has proponents who argue that it will benefit many seniors and disabled individuals by increasing their net income and overall economic stability, there may be notable contention surrounding its fiscal implications for the state budget. Opponents could argue that removing taxation from these income sources might disproportionately affect the state’s ability to fund essential programs, as it limits the pool of taxable income. As the bill moves through the legislative process, discussions regarding its economic ramifications and potential alternatives or compensatory measures may arise.

Companion Bills

No companion bills found.

Previously Filed As

CT HB05067

An Act Eliminating The Personal Income Tax On Social Security Benefits And Pension Or Annuity Income.

CT HB05037

An Act Eliminating The Personal Income Tax On Social Security Benefits And Pension Or Annuity Income And The Estate And Gift Taxes.

CT HB05106

An Act Eliminating The Qualifying Income Thresholds For The Personal Income Tax Deductions For Social Security Benefits And Pension Or Annuity Income.

CT SB00031

An Act Eliminating The Qualifying Income Thresholds For The Personal Income Tax Deductions For Social Security Benefits And Pension Or Annuity Income.

CT HB05108

An Act Eliminating The Qualifying Income Thresholds For The Personal Income Tax Deduction For Pension Or Annuity Income.

CT SB00028

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

CT HB05026

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

CT HB05281

An Act Allowing A Personal Income Tax Deduction For Stipends Paid To Volunteer Firefighting Or Emergency Medical Services Personnel.

CT SB00237

An Act Establishing A Personal Income Tax Deduction For Military Funeral Honor Guard Detail Compensation.

CT HB05513

An Act Concerning The Deduction And Withholding Of Personal Income Tax From Certain Payments And Distributions.

Similar Bills

No similar bills found.