Stratford
Delegation Supports Bill
The General Assembly’s Select Committee on Aging
heard testimony today on a bill to exempt Social Security
and pensions from the state income tax. The bill, SB-147,
An Act Exempting Social Security And Pensions From The
Income Tax, was introduced by Senator Dan Debicella
(R-21) and was endorsed by State Representatives John
A. Harkins (R-120) and Lawrence G. Miller (R-122)
Senator Debicella told the Committee on Aging that
he wrote the bill because “most seniors live on
fixed incomes, and the rising costs of living in Connecticut
have hurt them especially hard in this recession. Providing
relief through not taxing Social Security and pensions
will make a huge difference to middle class seniors
struggling to make ends meet.”
Only fifteen other states tax Social Security benefits,
according to Senator Debicella, and two of those (Iowa
and Missouri) are phasing them out.
“It is clear that most states have decided against
‘double taxing’ our seniors by taxing Social
Security and private pensions which have already been
taxed during seniors’ working years,” said
Senator Debicella.
Representative Harkins, who has consistently introduced
similar legislation over the years, said it was an idea
whose time had come.
“Senior citizens on fixed incomes always have
struggled to pay their heating and electricity bills,
keep their cars on the road, put food on their tables
and pay their property taxes,” said state Representative
Harkins. “That’s why for years,
I have cosponsored and fought for measures to exempt
retirees’ Social Security and pension income from
the state income tax. Now, with economic conditions
in our state worsening every week, seniors need this
exemption more than ever.”
“With temperatures dipping into the teens and
single digits for the past few weeks, this has been
an especially difficult heating season for seniors in
Shelton, Stratford and elsewhere in Connecticut, forcing
them to spend more to keep their homes and apartments
warm. The unusually cold weather is likely to continue
into February and March, which will make life even more
difficult for retirees living on their Social Security
and pension incomes,” said state Representative
Miller. “When you are forced to stretch
every dollar to make ends meet, exempting Social Security
and pension income from the state income tax becomes
even more important. This legislation will help every
senior in Connecticut and this is the year it ought
to pass.”
Senator Debicella said that exempting Social Security
and pensions from the state income tax would cost $250-270
million per year in the state’s $36 billion, two-year
budget. “We have a massive $6 billion budget deficit
over the next two years,” said Senator
Debicella, “While I realize enacting
this proposal under these conditions is very difficult,
I believe it is critical for our seniors that we make
it a part of our budget deliberations.”
Senator Debicella suggested possibly phasing out the
tax over several years, like Iowa and Missouri are doing,
or finding additional offsetting spending cuts in the
state budget.
“The General Assembly has an opportunity to provide
real economic help to our senior citizens, and I would
hope we will get bipartisan support for its passage,”
said Senator Debicella.
| 
