An Act Concerning An Exemption From The Personal Income Tax For Overtime Income.
Impact
If enacted, this bill would significantly alter the tax landscape for employees earning overtime income in the state. By exempting such earnings from personal income tax, the bill is expected to benefit a considerable number of hourly wage earners who often rely on overtime to meet their economic needs. The potential impact includes increased disposable income, which may lead to greater consumer spending and boost local economies. However, the measure may also result in reduced tax revenue for state coffers, raising concerns about the implications for public funding and services reliant on income tax collections.
Summary
House Bill 05024 proposes an amendment to the general statutes that would exempt overtime income earned by employees from the personal income tax. This legislative initiative, introduced by Representative Lanoue, aims to provide financial relief to workers who earn additional compensation through overtime hours worked. The underlying purpose of the bill is to enhance the take-home pay of employees, thus promoting better financial stability for families that rely on overtime as a critical component of their earnings.
Contention
The bill may face opposition from those who argue that the tax exemption could lead to an unfair advantage for certain higher-earning employees compared to those working standard hours. Critics may also express concerns regarding the long-term sustainability of such exemptions, emphasizing the need for a comprehensive approach to tax reform that addresses income equity across all levels of earners. Moreover, the implications for state budgetary allocations and the potential for future tax adjustments could be major points of contention during legislative discussions.
An Act Making Adjustments To The Personal Income And The Earned Income Tax Credit And Concerning The Human Capital Investment Tax Credit, Tax Gap Reporting And The Tax Incidence Report.