With House leadership calling tax relief a priority for 2015, Rep. Patricia A. Serpa (D-Dist. 27, West Warwick, Coventry, Warwick) has submitted legislation that would exempt income from Social …
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With House leadership calling tax relief a priority for 2015, Rep. Patricia A. Serpa (D-Dist. 27, West Warwick, Coventry, Warwick) has submitted legislation that would exempt income from Social Security and retirement plans from state personal income tax.
The bill (2015-H 5203) closely mirrors similar legislation submitted by Rep. Robert E. Craven (D-Dist. 32, North Kingstown), but changes the eligibility age from 65 to 62.
“Not only do I support Representative Craven’s bill,” said Serpa in a statement, “I’m a co-sponsor of it. I just have concerns about those aged 62 to 64, and would like to see them afforded the same financial relief if they’re taxed on the same types of income.”
The bill would ease the tax burden on retirees by exempting Social Security, disability benefits, military pensions, and pension plans in the public and private sector from state personal income tax.
House Speaker Nicholas A. Mattiello has said on a number of occasions prior to the start of the session that legislation of this kind – providing tax relief to retirees – is one of his top priorities.
If enacted, Rhode Island would join 27 other states – including Massachusetts and Maine – and the District of Columbia that specifically exempt Social Security income from taxation. (Although Rhode Island does not specifically tax Social Security benefits, that income is identified on federal tax returns. Since Rhode Island’s income tax is based on the federal adjusted gross income of federal tax form filers, the end result is that Rhode Island generates a portion of its income tax collections from Social Security benefits.)
The bill has been referred to the House Committee on Finance. It is co-sponsored by Representatives Mia A. Ackerman (D-Dist. 45, Cumberland, Lincoln), Deborah A. Fellela (D-Dist. 43, Johnston), K. Joseph Shekarchi (D-Dist. 23, Warwick) and Dennis M. Canario (D-Dist. 71, Portsmouth, Tiverton and Little Compton)
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patientman
Sounds great. Where does the general assembly plan to cut spending to pay for it? Ohhhhh, they don't have a plan for that. Looks like everyone else will have to pay higher taxes to make up for the loss of revenue. Great idea if there are budget cuts that equal the revenue loss. That ain't gonna happen.
Thursday, February 5, 2015 Report this
Thecaptain
So for example, the poor ex fire chief of providence, Gilly McGlaughlin, who only gets $190,000 and ree health care for life, he would see a tax relief? And what about the incredible number of people who have 2 tax payer funded municipal retirements with free helath? They too get a break? Good luck Pat!
Thursday, February 5, 2015 Report this
bendover
HELLO. Christmas is over...The last time that I recall going down a similar path was the phase out of the tangible property on cars. A $200M revenue stream was never identified to replace the lost revenue, cities and towns panic struck figured that raising the valuation on Grandma's 1981 Ford Tempo by $2,000 would fix the short fall...In other words, no detailed thought about ramifications down the road...Here we go again...Wait till you try and find a fiscal note attached to this bill after it sails out of committee for passage, no doubt in the last few days of the session...The players change but in the end it always ends up a goat rope that taxpayers are stuck with...Hint, hint, the former residents are already in Florida or are planning on leaving this financial hell hole. This is lip stick on a pig.
Thursday, February 5, 2015 Report this
JohnStark
Can I assume that "...income...from retirement plans" includes distributions from IRA, 401(k), and 403(b) plans? If so, this is a good start. But why tinker around the edges? Why not implement a five-year phase out of the state income tax. Such a move would make RI immeasurably more competitive and force a degree of accountability on state government.
Thursday, February 5, 2015 Report this
Scal1024
Comments 1 and 2...both Rob Cote?
Wednesday, February 11, 2015 Report this
Scal1024
This particular topic I couldn't agree more. Such a joke by the GA, the loss of revenue will never be made up in spending cuts. They will sadly never learn.
Wednesday, February 11, 2015 Report this