The impact of S2067 is focused on enhancing the financial standing of retired residents in Rhode Island by allowing for a larger modification of retirement income when calculating personal taxes. This change is intended to assist those who may be living on fixed incomes as they navigate financial responsibilities. As such, the modification not only provides immediate tax relief but could also promote local economic stability as seniors retain more disposable income to spend within their communities.
Summary
S2067 is a bill that amends the Rhode Island General Laws pertaining to personal income tax. The central feature of this legislation is the increase in the modification amount allowed for taxable retirement income. Previously set at fifteen thousand dollars ($15,000), this modification allowance will rise to twenty thousand dollars ($20,000) for tax years starting in 2023. The bill seeks to provide greater financial relief to retirees by reducing their taxable income from certain pension plans and annuities, thereby easing the tax burden on seniors relying on these income sources.
Sentiment
The sentiment around S2067 reflects a generally positive view from stakeholders who advocate for the financial well-being of retirees. Proponents argue that this increase in the modification amount will support a demographic that often faces economic challenges. There seems to be a consensus that the bill is a step in the right direction for state tax policy regarding the elderly and retired populations. However, concerns may arise regarding the balance of tax revenues as the state adjusts to these modifications, but overall, discussions have been predominantly supportive.
Contention
While there is strong support for S2067, some contention may stem from potential fiscal implications for state revenues. Critics may argue that allowing higher modifications for retirement income could lead to decreased tax revenues, impacting state budgets that rely on these funds for various public services. Additionally, stakeholders are reminded that increasing modifications could set a precedent for further alterations in tax structures, stirring discussions about equity and distribution of tax benefits among different demographic groups, particularly regarding wealthier retirees versus those of lower income.
Establishes the first time home buyer savings program act. Allows modifications to federal adjusted gross income for $50,000 in contributions and $150,000 of interest and dividends included in federal adjusted gross income.
Establishes the first time home buyer savings program act. Allows modifications to federal adjusted gross income for $50,000 in contributions and $150,000 of interest and dividends included in federal adjusted gross income.
Establishes the first time home buyer savings program act. Allows modifications to federal adjusted gross income for $50,000 in contributions and $150,000 of interest and dividends included in federal adjusted gross income.
Establishes the first time home buyer savings program act. Allows modifications to federal adjusted gross income for $50,000 in contributions and $150,000 of interest and dividends included in federal adjusted gross income.
Gradually phases in modifications to federal adjusted gross income over a four (4) year period for social security income, from twenty-five percent (25%) up to one hundred percent (100%), beginning on or after January 1, 2026.
Phases in modifications to federal adjusted gross income over a four (4) year period for social security income, from twenty percent (20%) up to eighty percent (80%), beginning on or after January 1, 2026.