Allows a modification up to $50,000 of taxable pension and/or annuity income includible in federal adjusted gross income for tax years beginning on or after January 1, 2025.
Impact
The proposed modification would directly affect state revenue by reducing the amount of taxable income reported by individuals receiving pension or annuity benefits. Furthermore, it may serve to attract more retirees to the state by providing a more favorable tax environment for those who depend on such income. Critics might argue that while this is beneficial for retirees, it may also place a burden on the state's budget for social services and public infrastructure funding, which rely heavily on state revenue generation through comprehensive tax codes.
Summary
Bill S2313 proposes a modification to the Rhode Island personal income tax code that allows for a deduction of up to $50,000 on taxable pension and annuity income that is included in federal adjusted gross income for tax years starting on or after January 1, 2025. This change is designed to benefit retirees and reduce their taxable income, acknowledging the financial challenges faced by individuals living on fixed incomes after retirement. The introduction of this bill emphasizes the growing need for tax relief mechanisms targeting pension and annuity recipients.
Contention
There are discussions around the bill that highlight not only the benefits but also potential challenges. Some stakeholders argue that this tax modification could exacerbate disparities by favoring higher-income retirees who receive larger pension benefits, while low-income earners might not see as significant relief. Also, debates centre on ensuring that the state's fiscal health is not compromised, which can occur if substantial deductions lead to a decrease in the overall tax revenue. As discussions continue, lawmakers will need to weigh these considerations to achieve a balanced approach that aids retirees without undermining the economic stability of state resources.
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.