Rep. Joseph M. McNamara (D-Dist. 19, Warwick, Cranston) has introduced legislation that would exempt state, federal and military pensions from state income tax with income limitations for the …
Rep. Joseph M. McNamara (D-Dist. 19, Warwick, Cranston) has introduced legislation that would exempt state, federal and military pensions from state income tax with income limitations for the filer.
“Last year, we removed tax on Social Security income,” said Representative McNamara, chairman of the House Health, Education and Welfare Committee. “I have heard from several constituents who have pointed out the fact that there are certain pensioners – namely those with a state, federal or military pension – who don’t get Social Security or who receive a seriously reduced version. This bill would put the retirement income of these people in the same category as Social Security.”
The bill (2016-H 7102) would limit the exemption to individuals with an adjusted gross income of less than $80,000 or a married couple at less than $100,000, bringing it in line with the Social Security income exemption that was passed in last year’s budget. A similar bill was introduced last week by Rep. Robert Lancia (Dist. 16 Cranston) that has no limits based on income. Lancia’s bill was one of three bills he introduced last week benefiting veterans.
Lancia’s bill would have a $3 million impact the first year and $6 million the following year.
“We passed the Social Security exemption last session because we felt it was wrong to once again tax the income that senior citizens had been contributing all their lives,” said Representative McNamara. “It was the right thing to do. Now we want to do the same thing for others who receive limited or no Social Security, but do receive a pension for the hard work they put in the service of their country.”
The legislation, which is cosponsored by Representatives Carol Hagan McEntee (D-Dist. 33, Narragansett, South Kingstown), Arthur J. Corvese (D-Dist. 55, North Providence), Jan P. Malik (D-Dist. 67, Warren, Barrington) and Samuel A. Azzinaro (D-Dist. 37, Westerly), has been referred to the House Finance Committee.
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