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by Lt. Gov. John Rodgers
Everyone in this country owes our military veterans a debt of gratitude. It’s long past time for the Legislature to pay that debt forward.
Here’s the issue: Vermont is just one of the few states that does not exempt military pensions from state income taxes. Finally, this year, the Legislature has taken steps to change that with a bill that would fully exempt the income tax on military pensions for Vermonters who make up to $125,000 a year. Those making $125,000-$175,000 would get a partial exemption.
Survivors of veterans who have earned these pensions would also qualify.
Gov. Phil Scott has long advocated for exempting military pensions from the income tax. So have I, dating back to my early days in the Legislature. The bill that includes the military pension exemption has passed the House as part of a comprehensive tax package; the Senate should swiftly follow suit.
The exemption makes sense on so many levels, both for moral and for policy reasons. First, many members of our Air and Army National Guard have told me the exemption would act as an incentive to keep our valued veterans here or entice others to move here. As it stands now, many military retirees have moved out-of-state to live in more tax-favorable places.
Veterans leave military service highly trained and with a great work ethic. It’s a no-brainer that a state facing an acute workforce shortage should do everything in its power to keep skilled workers at home and on the job. Our businesses want and need skilled and disciplined help. Not to mention, our communities that benefit from their volunteer contributions as coaches, tutors, and first responders.
Second, we simply owe it to those who have sacrificed so much for our state and country. The Legislature’s Joint Fiscal Office says about 2,210 military retirees would qualify for the full or partial exemption. The JFO estimates that the state would forego about $2.5 million a year in income taxes with the exemptions in place. I consider it a workforce and economic development investment.
Yes, it’s real money in a very tight budget year. But surely our veterans are worth every penny.
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Categories: Commentary, State Government, Taxes, Veterans
Re: “… act as an incentive to keep our valued veterans here or entice others to move here.”
Hello, Mr. Rodgers. Would you be kind enough to repeat that statement.
“As it stands now, many military retirees have moved out-of-state to live in more tax-favorable places.”
Allow me to make a long story short. Lowering taxes makes Vermont a more favorable place to live. Not just for veterans, but for all people “…highly trained and with a great work ethic.”
And yes! “It’s a no-brainer that a state facing an acute workforce shortage should do everything in its power to keep skilled workers at home and on the job.”
Hello again, Mr. Rodgers. Hello, Governor Scott. Hello, Vermont Legislators. Please. Put your critical thinking hats on for a change, instead of those tin-foil beanies you’ve been wearing as you contemplate increasing taxes to support the various failed government incentivized institutions that drive veterans, and all highly trained people with a great work ethic, away from Vermont.
Is he doing his job? What is his job exactly? Is he actually writing these or is a staffer playing around with the 4am dropped narrative scripts? Has lots to say and apparently not much to do as the #2 executive seat holder.
Being a Vet with VT property, the state should provide some property tax relief. Vets on low income often have encountered some financial event thereby making it hard to pay taxes on time. So the towns turn the tax debt to Delinquent Tax Collectors and they have no soul 8% penalties the Debit Collector gets and interest is added making it more difficult. These Collectors have family or friends they notify at a public auction of a property being sold. (Insider trading). An asset a Vet has is gone because of VT policies. Towns many times don’t recognize Veterans, it’s a money issue. And the town needs Veteran money and 80% of that goes to the crap school systems. The towns collects majority of taxes for the government schools
Alabama if over 65 a property owner doesn’t pay property taxes, hence no Debit Collector and they don’t loose their property. Most property appraisals by the towns are higher than Fair Market Value, so the towns collect higher taxes. Bruce Parker of True North Reports (before VDC) wrote two articles about my problem with excessive appraisals. The Vet has to fight two wars military and local taxes. Vermont sucks.
For “most” military retirees this will be a much needed and helpful change to Vt’s tax code however……my neighbor has been pushing this for years. He gets $100,000+ retirement, (don’t know how much of that is “military”) and the Wife makes well over $100,000 “working from home”. I don’t know how they’re going to manage to survive since moving to Vt.
Trying to make points with conservatives…….going to need much more than this.