New Jersey Senate Bill SCR91

New Jersey 2024-2025 Regular Session

• Introduced: 2/15/24
• Refer: 2/15/24

Caption

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

Impact

If enacted, SCR91 would not directly change state laws but would influence federal tax legislation concerning military retirement pay. The resolution seeks to impact how military retirement income is treated federally, potentially leading to a unified approach in relieving income tax burdens on this particular form of compensation. This proposal reflects an acknowledgment of the unique challenges that military retirees face, such as adjusting to civilian life and addressing issues like post-traumatic stress disorder. Thus, by advocating for this federal change, New Jersey's legislature aims to support the financial wellbeing of its veterans.

Summary

Senate Concurrent Resolution No. 91 (SCR91) is a legislative proposal introduced in the New Jersey Legislature which urges Congress to exempt military retirement pay from federal income taxation. This resolution acknowledges the sacrifices made by military members, who often leave lucrative employment to serve the country, emphasizing that their retirement benefits should not be subject to taxation, reflecting the respect owed to them for their service. The resolution aims to alleviate financial burdens for military retirees, allowing them to transition more easily into civilian life and pursue personal interests after years of dedicated service.

Contention

While SCR91 is a resolution urging Congress, it aligns with ongoing debates regarding the taxation of benefits for military personnel. Proponents argue that abolishing taxes on military pensions is a necessary step in recognizing the sacrifices made by these individuals. Critics, however, may contend that such a tax exemption could lead to significant revenue losses at the federal level or create disparities in how different types of retirement income are taxed. The resolution brings to light the critical dialogue surrounding equity in taxation policy, especially concerning those who have served in the armed forces.