Lawmakers to debate whether to cut taxes on retirees

HARTFORD, CT (WFSB) – State lawmakers will debate whether to cut taxes on retirees.

A proposed bill would change how retirement income is taxed in Connecticut.

The Finance Revenue and Bonding Committee was scheduled to have a public hearing on that and other bills on Friday. The hearing was set for 10 a.m. on Friday.

Before that, a group of legislators and advocates scheduled a press conference to show support for it.

Currently, if an individual retiree makes one penny over $75,000 a year, they are ineligible for the tax exemption on retirement income.

For a married couple, it is $100,000.

That’s called a “tax cliff.”

The bill would instead create a phased-out approach so that more retirees would be eligible for the exemptions.

It would apply to things like pension and annuity income and IRAs.

For those who aren’t retirees, the bill would still impact them.

That’s because it is a part of a larger bill that changes several things, including adjusting certain personal income tax rates.

The bill is 41 pages long, and it’s sure to undergo more changes as it works its way through the legislature.

Copyright 2023 WFSB. All rights reserved.