HARTFORD, Conn. (AP) — Democrats in the Connecticut state Senate want to exempt all military retirement pay from the state’s personal income tax.
Under current state law, 50 percent of the federal income paid to retired members of the U.S. Army, Navy, Air Force, Marines, Coast Guard and Army and Air National Guard is exempted from the income tax. About 11,000 veterans are currently affected, costing the state about $4 million a year in lost revenue.
Senate President Martin Looney said Tuesday that Connecticut should join other states, including Massachusetts and New York, in providing a 100 percent exemption. He said it would demonstrate the state’s appreciation for the sacrifice made by veterans.
Senate Majority Leader Robert Duff said such an exemption would make Connecticut a more attractive state to live for retiring veterans.
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