LCO No. 2943 1 of 2
General Assembly Proposed Bill No. 5691
January Session, 2023
LCO No. 2943
Referred to Committee on FINANCE, REVENUE AND
BONDING
Introduced by:
REP. WOOD K., 29th Dist.
REP. BARRY, 31st Dist.
REP. POULOS, 81st Dist.
REP. LEEPER, 132nd Dist.
REP. QUINN, 82nd Dist.
REP. DATHAN, 142nd Dist.
AN ACT ADJUSTING THE QUALIFYING INCOME THRESHOLDS FOR
CERTAIN PERSONAL INCOME TAX DEDUCTIONS AND
CONCERNING THE CLIFF EFFECT.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
That section 12-701 of the general statutes be amended to (1) increase, 1
from less than one hundred thousand dollars to less than one hundred 2
fifty thousand dollars for married individuals filing jointly, the 3
qualifying income thresholds for the personal income tax deductions for 4
Social Security benefits, pension or annuity income and distributions 5
from certain individual retirement accounts, (2) require the qualifying 6
income thresholds for such deductions for all eligible filers to be indexed 7
to reflect the rate of inflation, using the consumer price index, and (3) 8
provide for income threshold phase-outs of (A) twenty per cent for each 9
five thousand dollars or fraction thereof of adjusted gross income for 10
unmarried individuals, married individuals filing separately and heads 11
of households, and (B) twenty per cent for each ten thousand dollars or 12 Proposed Bill No. 5691
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fraction thereof of adjusted gross income for married individuals filing 13
jointly, to eliminate the cliff effect. 14
Statement of Purpose:
To (1) increase, for married individuals filing jointly, the qualifying
income thresholds for the personal income tax deductions for Social
Security benefits, pension or annuity income and distributions from
certain individual retirement accounts, (2) require the qualifying income
thresholds for such deductions for all eligible filers to be indexed to
reflect the rate of inflation, using the consumer price index, and (3)
provide for income threshold phase-outs to eliminate the cliff effect.