House Republican Press Release

March 7, 2007

Press Office: 860-240-8700

Rep. Labriola: House Republican Bills would Make CT more Affordable to Retirees

Measures Would Exempt Pension, Social Security Benefits from Income Tax; Provide Property Tax Relief

Connecticut is becoming increasingly unaffordable for retirees, forcing thousands to leave the state every year, a situation that several bills proposed by the House Republican Caucus would help resolve, state Representative David K. Labriola said today.

“Over the past year, we have seen major increases in the cost of gasoline as well as significant hikes in our electricity rates. For retirees living on fixed incomes, those increases in Connecticut’s high cost of living are compounded by the fact that our state taxes pension benefits the same way it does earned income,” said Representative Labriola, R-131^st District. “For retirees whose sole source of income is their pension and Social Security benefits, Connecticut is becoming increasingly unaffordable. The result is that thousands of retirees are moving out of Connecticut every year to low-tax states in the south and southwest, where pension income is not taxed and the cost of living is less.”

“Seniors who worked all their lives, contributed to their pension funds, and took an active part in their communities should be able to enjoy their hard-earned retirement years without having to be concerned about making ends meet. That is why I am strongly supporting several House Republican proposals that if enacted into law, will go a long way toward making our state more senior-friendly,” Representative Labriola said.

Those measures include:

• House Bill 5541, which would phase out the personal income tax on pension and Social Security income for seniors aged 62 and older.
• H. B. 5542, which would expand the number of elderly people eligible for local property tax relief by lowering the current age when seniors qualify for the benefit from 70 to 65 and increasing the income eligibility levels by $10,000 for both individuals and married couples.
• H. B. 5712, which would allow seniors 65 years of age and older who do volunteer work in their communities to receive a property tax abatement of up to $750.

I also support legislation (H. B. 7131) introduced by the Select Committee on Aging that would increase the income limits used to determine eligibility for the ConnPACE program for seniors aged 65 and older. The bill would raise the income threshold for unmarried seniors from $20,800 to $27,700 and for married seniors from $28,100 to $37,300.