Bolinsky Votes to End Taxing Social Security

HARTFORD- State Rep. Mitch Bolinsky (R-106) announced his support for a bi-partisan plan to exempt federal Social Security pension benefits from Connecticut state income tax, a measure that has passed a key legislative hurdle by winning unanimous support in the Legislature’s Aging Committee.

Currently, a taxpayer can deduct 100 % of their social security benefits if an individual’s federal-Annual Gross Income (AGI) is less than $50,000 or $60,000 for couples. If federal AGI equals or exceeds the threshold, the maximum deduction is 75% of their Social Security benefits.
The legislation, HB-5236, An Act Exempting Social Security Benefits from State Income Tax is aimed to help Connecticut compete against other low tax states by making it a more attractive place to retire.

Presently, twenty-seven states exempt all Social Security income from state income tax. Approximately, $21 million a year is collected by the state from taxing Connecticut resident’s Social Security income.

“Connecticut ‘s high cost of living is one of the major reasons retirees flee and have made Connecticut inhospitable to those who wish to live out their golden years in the same state they raised their families and lived their lives. Connecticut needs to reverse its current tax structure and give residents a reason to stay in-state when they retire; this proposal is a first good step in that direction,” said Rep. Bolinsky.

In 2012, Connecticut was given the awful distinction of being ranked as the worst state in the country for retirement due to its high taxation. Bolinsky also pointed to a poll conducted by Gallup this in 2014 that showed 49% of state residents wanting to leave Connecticut citing high taxes.

“We have a great state to live in, let’s give people an incentive to stay,” said Rep. Bolinsky.