Connecticut House Bill HB05699

Connecticut 2019 Regular Session

• Introduced: 1/22/19
• Refer: 1/22/19

Caption

An Act Concerning The Deduction And Withholding Of The Personal Income Tax From Pension Payments.

Impact

If enacted, HB 05699 would significantly impact state laws regarding income tax collection from pension payments. The bill seeks to provide a more beneficial tax framework for individuals receiving pension payments, potentially allowing for greater cash flow by eliminating automatic deductions. This could provide financial relief to retirees, ensuring they receive their full pension amounts unless they opt into withholding by submitting the required certificate.

Summary

House Bill 05699 aims to amend existing tax regulations concerning the withholding of personal income tax from pension payments. The bill proposes that pension payers are no longer required to deduct and withhold income tax from pension payments unless the recipient submits a specific withholding certificate (CT-W4P) to the payer. This legislative change is intended to simplify the tax process for pension recipients and enhance their financial management regarding retirement income.

Contention

Despite its potential benefits, the bill may face opposition concerning the impact on state revenue. Critics might argue that reducing tax deductions on pension payments could lead to decreased tax revenues for the state, complicating budgetary allocations for public services. Supporters, on the other hand, might emphasize the importance of empowering retirees with full access to their pension income, enhancing their financial independence and security during retirement.