THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Friday, June 14, 1996 TAG: 9606140022
SECTION: FRONT PAGE: A18 EDITION: FINAL
TYPE: letter
LENGTH: 31 lines
The letter claiming that Virginia's government has stuck it to federal retirees again deserves closer examination.
If, as the taxpayer claims, the change in the age credit cost him an additional $339, his adjusted gross income must have been at least $51,088.
With an income of $51,088 (exclusive of Social Security or nontaxable interest or dividends), the 1995 tax would have been $1,059 vs. $720 under 1994 rules. If his income had been $28,200 or less, he would have paid no taxes. A younger couple with a $28,200 income would have paid $985.
The Allen administration promised and delivered on its pledge to make refunds to the federal retirees that the court ruled had been illegally taxed in those prior years. While some federal retirees may not be happy with their refunds, the fact is that the only retirees whose pensions were taxed during those years without relief are the private-sector ones. Under current state tax laws, all retirees and old people are treated the same.
I am a federal retiree and a grouchy old man who dislikes excessive taxes. But it must be concluded that if there is any unfairness in the state tax laws, it is for younger, low-income people.
Most of us probably could not complain about our state income tax if we compared it with the various other taxes we pay, especially the real-estate/personal-property and, most important, our federal income tax.
JIM SHAW
Norfolk, June 4, 1996 by CNB