The proposal to expand the Connecticut (CT) income tax exemption for retirement earnings gained mixed reviews from the public on April 14.
The expansion of the income tax exemption for retirement earnings in Connecticut gained various reviews from the public. (Photo: Record-Journal)
CT Income Tax Exemption Will Be Expanded
The state currently administers the CT income tax exemption for all pension and annuity earnings, but it only applies to individuals with an annual income of less than $75,000 and less than $100,000 overall household income for a married couple.
According to Journal Inquirer, the tax-writing committee of the General Assembly came up with a compromise measure that would exempt middle-income retirees from paying taxes.
Individuals with a total income of less than $75,000 will receive a full exemption from paying taxes on their earnings under this measure, while individuals with more than $75,000 total income will receive a partial exemption, and the CT income tax exemption will gradually decrease as total income increases.
Will the CT Income Tax Exemption Expansion Be Equitable?
The CT Income Tax Expansion proposal garnered mixed opinions from the public.
Michael Sopchak from North Branford claimed that some of his extended family left Connecticut due to the high cost of living in the state, and the CT Income Tax Expansion would affect many households differently rather than making taxation fairer for working families and retirees.
On the other hand, Sen. Cathy Osten, D-Sprague, argued that the Finance, Revenue, and Bonding Committee should consider exempting all pension and annuity earnings, regardless of total household income.
Because the CT Tax Income Expansion proposal would affect many people, the committee should consider all perspectives throughout the process.
