An Act Establishing A Personal Income Tax Deduction For Able Account Deposits.
Impact
If enacted, HB 05104 would amend section 12-701 of the general statutes to allow for personal income tax deductions specifically for contributions to ABLE accounts. This change could have a significant impact on the financial planning of families with disabled members, offering a way to save money tax-free for future needs related to disability. Additionally, it aligns with federal initiatives encouraging savings and financial stability for people with disabilities, further promoting inclusivity in economic participation.
Summary
House Bill 05104 seeks to establish a personal income tax deduction for deposits made into Achieving a Better Life Experience (ABLE) accounts. These accounts serve as tax-advantaged savings tools designed to help individuals with disabilities and their families save for disability-related expenses without jeopardizing their eligibility for public assistance programs. The primary objective of this bill is to promote financial independence among individuals with disabilities by reducing the tax burden associated with contributions to these accounts.
Contention
Discussions surrounding HB 05104 may focus on the fiscal implications, particularly how the proposed tax deductions might affect state revenue. Supporters argue that facilitating easier access to savings for disabled individuals could reduce long-term dependency on state-funded assistance programs. Critics, however, may raise concerns about the potential loss of state revenue, questioning the balance between promoting individual savings and maintaining essential funding for public services. The bill may also prompt discussions about the effectiveness of tax deductions as a policy tool for supporting those with disabilities.