How can it be constitutional for some persons, based on who their employer was to be exempt from income taxes during retirement, but other retired persons still have to pay income tax.
Some animals are more equal than others.
I was thinking the same thing. The article specifies further that they have pensions, which are defined benefit (more expensive) instead of defined contribution (such as 457) plans.
ping
It's called source taxing (taxing income from an outside source) and the SC has ruled it unconsitutional for federal and military retirees. I think this is who they're really trying to protect but as some sort of consolation prize they are rolling in state workers as well.
It's like this, I worked for Uncle for over 20 years in the military and refunded taxes back to Uncle and my home state (assuming I had a state of legal residence that taxed me while away from home) for those 20 years. Then I retire to another state and that state taxes my retirement from Uncle. As the SC says, not legal.
If I had worked in the state, was a resident of that state and then retired in that state all those years then the state could tax me, but it's not the case all the time.
I'm no expert on tax law, just basing my opinion on what I know.
SZ