New Jersey Assembly Bill ACR108

New Jersey 2022-2023 Regular Session

• Introduced: 2/14/22
• Refer: 2/14/22

Caption

Urges Congress to pass legislation that exempts military retirement pay from federal income taxation.

Impact

The passage of ACR108 would signify a shift in federal tax policy regarding military retirement pay, potentially alleviating some of the financial challenges faced by veterans as they transition back to civilian life. It acknowledges the struggle of military retirees who often face considerable hurdles such as finding affordable housing and integrating into the civilian job market. By advocating for a tax exemption, the resolution aims to honor their service and sacrifices while improving their financial stability.

Summary

ACR108 is a Concurrent Resolution introduced in the New Jersey Legislature that urges Congress to enact legislation exempting military retirement pay from federal income taxation. This resolution recognizes the unique sacrifices made by service members, which include not only prolonged separations from families but also putting their lives at risk in defense of the nation. As it stands, military retirement payments are taxable under federal law, placing an additional financial burden on those who have served the country.

Contention

While the resolution seeks to show support for military personnel, there may be contention regarding the broader implications of such a tax exemption. Critics might argue about the potential impact on federal revenue, particularly from a tax base perspective. Questions could be raised about fairness as it pertains to other groups and whether military service should uniquely qualify individuals for tax relief at the federal level, potentially igniting debates on equity and tax policy reform.