FACT SHEET AB 1275 (Gray) - California Council of MOAA

Transcription

FACT SHEET AB 1275 (Gray) - California Council of MOAA
FACT SHEET
AB 1275 (Gray)
~Military Retirement Pay~
SUMMARY
AB 1275 excludes Veterans’ military
retirement pay from the state income tax.
PROBLEM
California is home to nearly 1.9 million
Veterans, which amounts to the largest
population of Veterans in the country. This
population is diverse with constant growth
and changing needs. About one million of
Californian Veterans are currently over the
age of 60 (52.3 percent) and receiving
retirement pay. After 20 years in the service,
retirees are entitled to a pension worth half
their base pay and low-cost health insurance,
but that rarely provides enough
compensation for most to stop working.
Veterans offer a broad spectrum of
specialized skills gained in training and in
the field during their service. As civilians,
many with families to provide for, they are
able to return home from their service to
receive an education, open businesses, join
the workforce, and pursue interests
previously put on hold to serve our country.
However, under California’s current tax
laws, Veterans are met with the realization
that these pursuits are not easily achieved.
Many struggle as they transition into civilian
life and too often this leads to homelessness
for our Veterans. California accounts for
approximately 14% of the country’s
homeless Veteran population and one out of
every 9 California Veterans live in poverty.
Military retirement pay is taxable if it is
received by a resident of California. This
can amount to as high as 13.3%, thus driving
capable and experienced Veterans from our
state. California is ranked as one of the
lowest in economic standards for Veterans.
There are 30 other states that offer forms of
exemptions for military retirement pay; of
those states, thirteen explicitly exempt
military retirement pay from income taxes,
including: Massachusetts, Michigan, New
Jersey, and New York.
Veterans enlisted in military service without
omission, to offer their lives and time with
their families in order to defend our country.
After years of service, thousands of military
retirees seek the right place to retire, but
Veterans face difficulties as they return to
civilian life. It is made more difficult
because of financial struggles.
SOLUTION
AB 1275 will exempt Veterans’ military
retirement from state income taxes.
Veterans offer their skillsets, discipline and
experience, and with the retirement pay
exemption, our state can be proud to
welcome these valuable residents. Although
there is no way to fully repay them for their
sacrifices, AB 1275 gives Veterans a welldeserved break.
SUPPORT
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American Legion – Department of
California
FACT SHEET
AB 1275 (Gray)
~Military Retirement Pay~
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AMVETS- Department of California
California Association of County
Veterans Service Officers
California State Commanders
Veterans Council
Military Officers Association of
America
California Council of Chapters
VFW – Department of California
Vietnam Veterans of AmericaCalifornia State Council
California Senior Legislature
STAFF CONTACT
Adam Capper
(916) 319-2021