Brewster: Bill Would Trim State Tax on Disability Trusts

Harrisburg – March 4, 2011 – Sen. Jim Brewster has introduced legislation that would exempt the first $3,000 of disability trust income or gains from state taxes.

“This legislation largely follows federal tax protocol, which exempts the first $3,050 from taxation,” Brewster said. “Families with disabled children have enough worries seeing to it that their child’s future health and well being will be attended to. I see no reason why our state should have a more onerous tax standard than the federal government.”

Brewster said the idea for the legislation originated with an elderly constituent who approached former- Sen. Sean Logan about a trust he was trying to set up for an adult child who suffered from mental illness.

While the Senate never acted on the Logan bill, Brewster said he considers it a worthy proposal that he will push this legislative session.

“Allowing this minimal exemption would hopefully encourage more families to take the steps necessary to provide for the future of their disabled children,” Brewster said. “There certainly isn’t any justification for Pennsylvania to tax the first $3,000 of a family’s disability trust income when the IRS doesn’t.”

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