To the editor:
Our state is very close to accomplishing what almost all other states in the country have done. This legislative session there are laws proposed to remove the state income tax from …
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To the editor:
Our state is very close to accomplishing what almost all other states in the country have done. This legislative session there are laws proposed to remove the state income tax from military retired pay. Over the last few years some of our legislators have stepped up to sponsor legislation to get Rhode Island in step with the rest of the country.
But these efforts have, until now, never resulted in anything “getting out of committee.” Military retirees are younger than most retirees. The average officer retiring is 47 years old while the average enlisted is 43. They are primed for another career after the military. They come with experience and skills that are in high demand. But when it comes time to decide where to retire, they are faced with real choices.
All of us who face retirement can get information from any number of places. A military retiree can visit Wallethub.com and review that company’s research on the “Best States for Military Retirees.” That research included scores for all 50 states and The District of Columbia. Rhode Island scored 51st. You got it — dead last.
The methodology used by the Wallethub folks left no uncertainty that if you were considering retiring somewhere, that place would not be Rhode Island. You need to check this one out yourselves. The three main analysis categories include economic environment, quality of life and health care. The very first criteria in the economic points is “State Tax on Military Pension.”
Consider this: Nine states have no income taxes at all; 14 states exempt all military retired pay; 20 of the remaining states exempt portions of pay; seven states in 2015 did nothing for military retirees. That has since changed as state after state has passed legislation to attract and hold retired veterans. Maryland and Connecticut are some of the latest.
The real at-home issue is the fact that our neighbors in Massachusetts and Connecticut get full exemptions. Massachusetts doesn’t tax state, federal or military retired pay. It also doesn’t tax Social Security income. If you move to Fall River, you win the tax lottery.
A considerable amount of analysis is being provided to legislators in support of the decision to exempt. Comparing the tax revenue from military retired pay with the loss of revenue when a retiree moves away, it is easily shown that the state loses ground every time a retiree leaves. Rhode Island needs to attract a high-quality workforce to be available to move the state forward. Military retirees are just the right people to keep around.
Jeffrey Richard
55 Wamsutta Lane
Portsmouth