Senate Democrats seek to end tax on veterans’ retirement benefits

HARTFORD, Conn. – Majority Democrats in the Senate announced Tuesday they would prioritize exempting retired military veterans from paying income tax on their retirement benefits through a bill that would cost the state about $4 million per year.

Senate President Martin Looney discussed the proposal during a Hartford press conference Tuesday, just one day before Gov. Dannel P. Malloy is scheduled to propose a budget that must close deficits of more than $1 billion in each of the next two years.

Looney said the state could afford to forgo roughly $4 million in revenue each year to extend the existing tax break on veteran retirement pay from 50 percent to 100 percent.

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