Bipartisan Interest in Social Security Tax ReliefJanuary 24, 2017
One proposal picking up speed in Hartford? A full exemption for all workers from paying state tax on Social Security income.
Connecticut is one of 13 states that taxes Social Security income, but that may soon change if Democrats and Republicans have their way in the legislature.
More from the Hartford Courant‘s Daniela Altimari:
A proposal to exempt Social Security income from state taxes is gaining momentum at the Capitol.
The idea is overwhelmingly popular and has broad support on both sides of the aisle. But at a time when lawmakers are turning over couch cushions to scrounge up additional revenue, some wonder if the state can afford it.
The proposal, Altimari reports, would cost the state around $45 million each year. Connecticut faces a budget deficit of $1.46 billion in fiscal year 2018.
Current law only applies the taxes if a single filer is making $50,000 or more, or a joint filer is making $60,000 or more.
This is not the first time Democrats or Republicans have proposed eliminating state taxes on Social Security income.
In 2015, lawmakers introduced at least a dozen bills seeking an exemption.
In 2014, gubernatorial candidate Tom Foley (R-Conn.) proposed similar relief. At the time, a top aide to Gov. Dan Malloy (D-Conn.) blasted the proposal:
“This is a plan proposed by someone who doesn’t understand current law,” Roy Occhiogrosso, senior adviser to Gov. Dannel P. Malloy’s re-election campaign, said Monday. “And all this would do is benefit well-off retirees. Much of what he has proposed is already in law.”
Occhiogrosso is no longer in the administration, but it remains to be seen if Malloy is warm or cool to the Social Security proposal in 2017.
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