Rep. Mike Levin Calls for Lower State Taxes on Military Pensions
Oceanside, CA – U.S. Representative Mike Levin (D-CA), Vice Chair of the House Committee on Veterans’ Affairs and Chair of the Subcommittee on Economic Opportunity, wrote a letter to California Governor Gavin Newsom calling for lower state taxes on military pensions. As Rep. Levin wrote to Governor Newsom, California is the only state that fully taxes both military retirement pay and Survivor Benefit Plan payments.
“As a member of the House Veterans’ Affairs Committee and representative in Congress for Marine Corps Base Camp Pendleton, I have fought to strengthen federal benefits for those who serve,” Rep. Levin wrote. “California is the only state that fully taxes both military retirement pay and Survivor Benefit Plan payments – all other 49 states have recognized that military retirees should not be taxed twice on this income. We must join California’s veterans’ and military service organizations in fighting to correct this disparity. Not only is it the right thing to do for those who served, but it is also the right thing to do for our state.”
Representatives from the Military Officers Association of America (MOAA) praised Rep. Levin’s work on this issue:
“It is sad in that California is the only state in the nation that does not provide a personal income tax exclusion benefit. CALMOAA has been working with California elected leaders at the state level and federal,” said E Fred Green, Jr., LCDR, USN (Ret) President of California Council of Chapters MOAA. “We are very happy that Congressman Levin is stepping up to assist us in our efforts. We applaud Congressman Levin’s letter to Governor Newsom calling exempt military and our Surviving Spouses from California taxes. His efforts are exactly what we need from our federal representatives and we urge other Members of Congress to follow his lead.”
“Thank you Congressman Levin for your support of military retirees, those who served for at least 20 years or were medically retired, and their surviving spouses,” said Kathy Prout, Gold Star Wife and CALMOAA Surviving Spouse Liaison. “Spouses and families serve too! As the widow of a Naval Officer who was killed in the line of duty, I am a Gold Star Wife. I am particularly grateful to you for cosponsoring the bill to repeal the SBP-DIC Offset. Your support resulted in passage of that bill and honoring the sacrifice of our spouses who gave all. Supporting the CA tax exclusion legislation would truly help the surviving spouses of our fallen heroes and also honor the sacrifice of the surviving spouses of military retirees who in most cases did not get to earn their own retirement. SSB is 55% of the amount of retired pay selected by the retiree. It is also awarded to active duty death surviving spouses. There are only 27,000 military surviving spouses in CA who receive SBP. Only 6,002 of them died either on active duty or of a service caused illness or disability. I receive SBP. Not paying taxes on what my husband paid for with his life would be a blessing not only to me but to the rest of us.”
“California remains the only state that does not offer at least a partial personal income tax exclusion to Uniformed Service retirees and Surviving Spouses,” said Stephen Donlon, Capt, USN, Ret. “The most recent arguments in opposition to this tax exclusion include: Uniformed Service retirees receive generous benefits that are not available to other residents of California; and a unique tax exclusion class would be created, with first responders (as an example) not receiving a tax exclusion. These exist in the other 49 states, but these states realize the unique hardships the Uniformed Service members, their families, and Surviving Spouses have endured during decades of service, and gratefully and patriotically voted to enact full or partial tax exclusions for them. California historically ranks in the top three states receiving DoD funds. Yes, California is a quadruple dipper taxing active duty pay, Uniformed Services retiree pay and Survivor benefits, taxing earnings from Uniformed Service retirees' second careers, and taxing corporate revenues received from DoD. It is no wonder that California tax revenues are the highest in America, maintains a high budget surplus, and historically the population of Uniformed Service retirees decreases between 2% and 3% each year.”
Click here or see below for the full letter:
The Honorable Governor Gavin Newsom
State of California
1303 10th Street, Suite 1173
Sacramento, California 95814
As a member of the House Veterans’ Affairs Committee and representative in Congress for Marine Corps Base Camp Pendleton, I have fought to strengthen federal benefits for those who serve. I write regarding a state matter of great importance to military retirees with federal pensions: disproportionate taxation on those hard-earned benefits.
California is the only state that fully taxes both military retirement pay and Survivor Benefit Plan payments – all other 49 states have recognized that military retirees should not be taxed twice on this income. We must join California’s veterans’ and military service organizations in fighting to correct this disparity. Not only is it the right thing to do for those who served, but it is also the right thing to do for our state.
California is home to over 140,000 military retirees as of December 31, 2021, down from nearly 163,000 eight years prior. We cannot continue to hemorrhage residents that represent some of the best and brightest our nation has to offer. Many military retirees go on to second careers, contributing to our economy. Additionally, they bring federal resources back to our state in the form of veterans’ benefits, Social Security, Medicare, and much more.
I strongly support reducing state taxes on military pensions and urge you to join me in this effort. Thank you for your consideration, and please contact me if I can be of assistance.
Sincerely,
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