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 American Legion – Department of California FACT SHEET AB 1275 (Gray) ~Military Retirement Pay~ 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