McGorty Proposal Cutting State Tax on Social Security Gets Go-Ahead from Legislature’s Aging Committee
A proposal introduced by State Representative Ben McGorty (R-122) to exempt Social Security from the state income tax has been incorporated into a bill that has been approved by the legislature’s Committee on Aging.
“People who have worked and lived in Connecticut aren’t able to afford retirement in Connecticut,” said Rep. McGorty. “The tax on Social Security is one reason why. This bill will begin the process of reversing policies that have sent many seniors packing once they enter their retirement years. I am very pleased that the Aging Committee has lent its bipartisan support to this legislation.”
Under Connecticut’s current tax laws state residents that earn Social Security benefits and make over $50,000 per year if single, and $60,000 if married, are currently taxed for 25% of their total receipts.
McGorty cited a Gallup Poll from last spring which concluded that 49% of state residents want to leave the state giving Connecticut’s high taxes as the primary reason. He said it is no coincidence that U. S. Census estimates show Connecticut ranking as one of only six states that has lost population over the past two fiscal years.
It is estimated that the state takes in roughly $21 million per year from taxing Social Security benefits, and McGorty said the revenue could easily be made up though the elimination of redundant and inefficient government services, and a reduction in middle management.
The bill, HB 5236, An Act Exempting Social Security Benefits from State Income Tax was approved unanimously by a vote of the Aging Committee on March 5th and will head to the House of Representatives for action there.
This session of the Connecticut General Assembly convened on January 7th, and will conclude at midnight, Wednesday, June 3rd, 2015.