HARTFORD, Conn. -- State Reps. Ben McGorty (R-122) and Jason Perillo (R-113) continued their push this week to exempt Social Security and pension benefits from the state income tax.
Both legislators provided testimony supporting the repeal to the General Assembly’s Finance, Revenue and Bonding Committee.
In Connecticut, state residents that earn Social Security benefits and make over $50,000 per year if single, and $60,000 annually if married, are currently taxed for 25 percent of their total receipts.
“Many retirees are in an economic exile from Connecticut, unable to afford to remain here in the golden years,” said McGorty. “Other states are looking to join the 26 that do not tax Social Security, and Connecticut needs to be among them. This is one meaningful and essential thing we can do to keep our seniors here, and preserve the economic power they represent to our state.”
The legislators pointed out that Connecticut is one of only six states that declined in population over the course of the previous year.
“Social Security was established to provide financial protection for retirees who work hard all their lives but who need assistance in their retirement years,” said Perillo, a member of the Finance Committee, in his testimony. “This is hardly a handout. Social Security beneficiaries contribute to the Social Security program throughout their careers – a time during which these folks were paying income taxes. To then tax these retirees after they have worked their entire lives is unfair and even harmful to them.”
It is estimated that the state takes in approximately $21 million per year from taxing Social Security benefits.
Perillo and McGorty said the revenue could easily be made up though the elimination of redundant and inefficient government services, along with a reduction in middle management in state government.