McGorty Proposes Bills Repealing State Tax on Social Security & Pensions
State Representative Ben McGorty (R-122) has made good on his pledge to introduce legislation this session that would exempt Social Security and pension benefits from the state income tax. Those 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.
“It is no secret that Connecticut is one of the least-favored states to retire in, and the state income tax on Social Security and pension retirement benefits is one of the reasons,” said Rep. McGorty. “People who have spent their whole lives working here and raising families here can no longer afford to retire here, and that’s wrong. It’s time to start reversing this trend by reversing the policies that have gotten us here, and this is one essential way to start.”
McGorty noted that a Gallup Poll from last spring concluded that 49% of state residents want to leave the state and that Connecticut’s high taxes were cited as the primary reason. He said U. S. Census estimates show people are voting with their feet, with 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.
McGorty’s two proposed bill, HB 5252, An Act Eliminating Personal Income Taxation on Social Security Benefits & HB 5251, An Act Eliminating Personal Income Taxation on Pension Benefits have been referred to the Joint Committee on Finance, Revenue and Bonding and they await action there.
This session of the Connecticut General Assembly convened on January 7th, and will conclude at midnight, Wednesday, June 3rd, 2015