Connecticut House Bill HB05655

Connecticut 2023 Regular Session

• Introduced: 1/18/23
• Refer: 1/18/23

Caption

An Act Concerning A Personal Income Tax Deduction For Long-term Care Insurance Premium Payments.

Impact

If enacted, HB05655 would amend Title 12 of the general statutes, specifically relating to personal income tax regulations. This amendment would provide a financial incentive for individuals to invest in long-term care insurance, which could lead to an increase in the uptake of such policies. Supporters of the bill argue that this deduction would encourage families to prepare for future care needs, potentially reducing the state's burden in providing medical and assistance services for the elderly and disabled.

Summary

House Bill 5655 proposes a personal income tax deduction for individuals who pay for long-term care insurance premiums. The bill would allow taxpayers to deduct fifty percent of the amount paid for these insurance premiums for a taxable year, thus aiming to alleviate some of the financial burden associated with long-term care. This initiative is particularly aimed at helping families who are preparing for the potential costs associated with long-term care needs, which are increasing as the population ages.

Contention

There are likely to be discussions around the implications of this tax deduction. Critics may point out that while the intent is to support families, the financial implications for the state in terms of reduced tax revenue could be a concern. Additionally, the potential impact on those who may not be able to afford long-term care insurance in the first place raises questions about equity and access to necessary care. Supporters will need to address how this bill could integrate with existing social safety nets and funds available for elder care.