The proposed bill, General Assembly Proposed Bill No. 5551, aims to amend section 12-701 of the general statutes to introduce a personal income tax deduction specifically for gambling losses incurred by taxpayers. This deduction would allow individuals to offset their taxable winnings with the losses they have experienced from gambling activities.

The intent of this legislation is to provide financial relief to taxpayers who engage in gambling by enabling them to reduce their taxable income based on their gambling losses. This change in the law is designed to create a more equitable tax environment for those who participate in gambling, ensuring that they are not taxed on their net winnings without consideration of their losses.