State Reps. Jason Perillo and Ben McGorty, both Republicans from Shelton, have introduced legislation to exempt Social Security and pension benefits from the state income tax.
Currently, state residents that receive Social Security benefits and make over $50,000 per year if single, and $60,000 if married, are taxed for 25% of their total receipts.
Perillo said the proposal would help Connecticut compete against other states by making it a more attractive place to retire.
“When someone can retire in a better climate with a better economy and not have their pension and Social Security pilfered by the state, why would they stay here?” Perillo asked.
“We need to eliminate these taxes so seniors can stay right here with their families,” he said.
Make CT more desirable
McGorty said Connecticut is now one of the least-favored states to retire in, partly due to certain state government policies, and it’s time to change that.
“People who have spent their whole lives working here and raising families here can no longer afford to retire here, and that’s wrong,” he said.
The two legislators noted that a Gallup Poll 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.
It is estimated that the state takes in roughly $21 million per year from taxing Social Security benefits, and they said the revenue could be made up though the elimination of redundant and inefficient government services, and a reduction in middle management.