I would humbly suggest looking at ending federal taxation on military retirement. After serving 20+ years in the military to earn that pension, we are taxed federally (and state in certain states) still as they consider it income and not a benefit we earned for a full career of service. I know in the grand scheme of things its not a huge issue but maybe consider a military retirement a benefit rather than an income to be taxed.
Itās foolish for the government to tax any moneys they are giving out, regardless of the reason for the payments.
This. 100% this.
Honestly you should have extended this to military pay and bonuses in general.
Thereās a lot of games military members play to avoid taxes, and itās absurd they even have to do that. I know someone who managed to get a bogus TDY to the UAE specifically to reenlist on exactly only the one day they were there, so they could claim tax-free status of their SRB. Meanwhile, āhonestā members who do not game the system like that have to immediately turn over 40% of their bonus to the very government who gave it to them?
There can be arguments about āno tax on overtimeā and āno tax on tipsā because thatās payroll, but that the government is taxing the very money itās paying out TO ITSELF is one of the most government things Iāve ever heard.
I completely agree. No tax on military period! I would also like to add better living conditions for military. So many barracks are in very rough shape with mold and in need of repairs. And dfacs not open half the time. Itās unacceptable!
100% agree! One of the many reasons why military families leave California.
Agree - only change I would make is to cap the amount at 50K - that would benefit all enlisted and officers through the grade of 05 ā 06 and flag officers would be required to pay taxes on the remaining balance.
I would also include you Disability benefits as well not just your pensions. I believe if you served your country and did 20 years ( sometimes its more) then you are going to have injuries that are not just going to go away and will be with you until death. I believe this income should be free from being taxed on a State and federal level.
VA disability is already tax free, maybe a stipend on top of the retirement pay for disabilites separate of the VA? actually one thing i would do is stop making certain things so hard to fight the VA overā¦