The bill, if passed, would primarily affect the financial situation of elderly military veterans residing in Rhode Island. By excluding a portion of military retirement income from state taxes, the bill seeks to ease the burden on this demographic, which may rely more heavily on fixed retirement incomes. The implication is that such financial relief could lead to increased disposable income for this population, allowing for greater spending within the state and potentially benefiting local economies.
Summary
House Bill 7647 proposes an amendment to the Rhode Island personal income tax code, specifically addressing the taxation of military retirement income. The bill aims to exempt the first twenty-five thousand dollars of military retirement income received by individuals aged sixty and over from state income tax. This amendment is designed to provide financial relief to retired military personnel, encouraging them to settle in Rhode Island and provide support to the economy.
Contention
While the bill enjoys support among veteran organizations and some lawmakers who see it as a necessary step towards honoring military service, it faces criticism regarding its fiscal impact. Opponents argue that such tax exemptions could reduce the overall state revenue, complicating funding for public services. Critics also raise concerns about whether targeted tax breaks might create inequities among different groups of retirees, particularly those who do not receive military pensions or who fall below the sixty-year age threshold for the exemption.
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.