GOP Legislators Secure Initial Legislative Approval To Exempt Pensions From State Income Tax

April 20, 2005

Republican Legislators serving on the Appropriations Committee earlier this week secured the committee’s approval of their initiative to exempt the pensions of Connecticut residents from the state’s income tax.

This proposal, now subject to further legislative action, was offered by Senator David J. Cappiello, R-Danbury, ranking member of the Appropriations Committee; Senator Judith G. Freedman, R-Westport; Senator Cathy Cook, R-Mystic; and Senator Len Fasano, R-East Haven. Supported by Art O’Neil ( Their initiative was passed by the committee as an amendment to related legislation.

“Our intention is to make Connecticut an affordable place to live and to retire to,” said Senator Cappiello. “By not exempting pensions from the income tax, we would be doing just the opposite.”

“People who have spent their lives here, contributing to the quality of life we enjoy in Connecticut, should not be forced by our tax system to leave their families and friends behind when they retire because they cannot afford to stay here,” said Senator Freedman.

“We were asked if there the state would lose revenue with this exemption, and my answer is that I believe Connecticut will gain, not lose,” said Senator Cook. “I am particularly pleased to know that military retirement pay will also be exempted from the state income tax due to this amendment. I believe this policy will encourage military retirees to embark upon their second careers in our state. I urge passage by the full legislature.”

“We should be creating incentives for people to retire in Connecticut, not discouraging them by imposing heavy taxes on their well-earned state pensions. With this exemption, it leaves retirees with an easy choice to remain in Connecticut rather than move to states like Florida which currently do not subject their pensions to an income tax,” said Senator Fasano, who represents East Haven, Wallingford, and North Haven.