Connecticut House Bill HB05176

Connecticut 2014 Regular Session

• Introduced: 2/18/14
• Refer: 2/18/14

Caption

An Act Concerning The Income Taxation Of Social Security And The Elimination Of The Earned Income Tax Credit.

Impact

In addition to exempting Social Security benefits, the bill also seeks to eliminate the earned income tax credit. This aspect has raised concerns among various legislative members and advocacy groups, as the earned income tax credit is often viewed as a vital tool for supporting working families and incentivizing employment. The removal of this credit may disproportionately affect low-income earners, thereby igniting a debate about the overall fairness and efficacy of the proposed tax changes.

Summary

House Bill 05176 proposes significant changes to the state's income tax structure by exempting Social Security benefits from personal income tax. The intent of the bill is to provide financial relief to retirees and low-income individuals receiving Social Security, acknowledging that these benefits are crucial support for many in later stages of life. By eliminating the taxation on Social Security, the bill aims to enhance disposable income for seniors and potentially improve their quality of life.

Contention

The discussion surrounding HB 05176 has been marked by contention, particularly regarding the balance between providing tax relief to retirees and maintaining support for working families. Supporters argue that exempting Social Security from income tax is a necessary step in acknowledging the financial burdens faced by seniors, while critics express concerns that cutting the earned income tax credit could lead to negative outcomes for lower-income households. This dual impact of the bill has created a complex landscape of support and opposition among lawmakers and the public alike.