WPRO News and the Associated Press

A bill has been introduced in the Rhode Island legislature to exempt Social Security and other retirement benefits from the state income tax.

House Speaker Nicholas Mattiello has said his top priority this legislative session is exempting the benefits from the income tax, because taxing benefits drives people out of Rhode Island and the state needs to provide incentives for them to stay to help the economy.

He has said the cut could cost the state $20 million to $40 million annually.

Rep. Robert Craven, a North Kingstown Democrat, introduced the legislation Thursday, however his bill differs from Mattiello’s vision in that he wants broader tax reform.

“Pensions, disability benefits and other private pension plans that we would at least like to consider, but the main goal is to exempt social security from the income tax,” said Craven.

Craven said if the bill were to pass it would save fixed-income Rhode Islanders several thousand dollars a year.

Mattiello says Craven’s bill is too broad and may have to be trimmed back.