An Act Establishing A Personal Income Tax Credit For Long-term Care Insurance Premium Payments.
Impact
If enacted, HB05267 would amend the general statutes to allow for a tax credit against the personal income tax specifically for those individuals who pay premiums on long-term care insurance. By providing this tax incentive, the bill encourages more individuals to take out long-term care policies, which is especially significant as the costs associated with long-term care can be substantial. Supporters argue that such financial relief is crucial in ensuring that citizens do not deplete their savings should they require extended care services during later stages of life.
Summary
House Bill 05267 aims to establish a personal income tax credit for premiums paid for long-term care insurance. The bill is targeted at individuals who purchase long-term care insurance policies, helping to alleviate some of the financial burden associated with these premiums. The intent of the proposed legislation is to promote and make long-term care insurance more accessible, thereby encouraging more residents to invest in such policies for their future health needs. This measure seeks to address the growing necessity of long-term care services as populations age, particularly among those approaching retirement age.
Contention
While supporters herald the benefits of increased affordability for long-term care insurance, there may be concerns surrounding the state’s budgeting and potential revenue impacts. Arguments could be raised regarding whether the benefits of this tax credit will sufficiently outweigh any loss in tax revenue for the state. Additionally, there could be discussions about the equity of the tax credit: whether it disproportionately favors wealthier individuals who are more likely to afford long-term care premiums and thus benefit more from the tax credit, leaving lower-income individuals without sufficient access to long-term care options.