Connecticut Senate Bill SB00031

Connecticut 2024 Regular Session

• Introduced: 2/13/24
• Refer: 2/13/24

Caption

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

Impact

The impact of SB00031 on state laws could be significant, primarily by increasing the tax deductions available to a specific demographic of taxpayers— retirees and those receiving pensions. By removing the income thresholds, more individuals will qualify for full deductions, which could effectively enable them to retain a greater share of their Social Security and pension incomes. This may result in a shift in the state’s revenue dynamics as the tax base could be affected by these changes.

Summary

Bill SB00031 aims to amend the existing laws regarding personal income tax deductions by eliminating the qualifying income thresholds for Social Security benefits and pension or annuity income. This legislative change is intended to provide broader tax relief to individuals receiving such benefits, thereby boosting their disposable income. Advocates argue that it will help alleviate financial burdens faced by retirees and individuals dependent on fixed incomes, making their financial situations more manageable.

Contention

However, the proposed bill is not without controversy. Critics may argue that while it provides immediate economic relief to retirees, it could also lead to decreased state revenue, which may impact funds allocated for public services and infrastructure. Discussions surrounding the bill are likely to focus on its long-term fiscal implications on state budgets, with some members expressing concerns that it may disproportionately benefit those with higher pension incomes, raising questions of equity in tax policy.