AARP Connecticut went in front of members of the Finance, Revenue & Bonding Committee on Friday, March 15, to voice concern about SB 877 (an Act Concerning Revenue Items to Implement the Governor’s Budget), which calls for a repeal of the bipartisan income tax relief promise for social security recipients, and those with pensions and annuity income. Most incumbent legislators of both parties promoted their affirmative vote to repeal this tax during the 2018 campaigns.
The combination of a repeal of this income tax relief promise with Governor Lamont’s proposals for cuts to the Medicare Savings Program and a sales tax on over-the-counter drugs places a disproportionate burden on Connecticut’s retirees.
AARP Connecticut is troubled about the negative effect of the accumulated cuts and taxes to lower and middle-income retirees who already struggle because of our high cost of living or who might choose to leave Connecticut for the same reason.
Retirees and those who are close to retirement, the age 50+ residents that are thinking about where to live and where to retire, make up 37 percent of the state’s population. Yet their total economic contribution to the Gross State Product is 47 percent and they support 49 percent of state and local taxes.
Policies and programs needs to work for, not against, those whose contributions to our state outsize their share of the population.