HomeMy WebLinkAbout1978 02-15 Sen. Knaak adds pension bill support REVIEW Sen . Knaak adds
pension bill Su support
State Senator Delores Knaak district 49- was intended so it had to be cleared up
I-R said today that she will support a bill this year."
approved by the Senate Tax Committee Senator Knaak also noted that the
recently which will exempt the first$7,200 committee which heard the bill went even
t\ of both public and private pensions from further than simple correction and
O• state income tax. decided to exempt the first $7,200 on
Senator Knaak said she opposed the private as well as public pensions,
original legislation which caused the tax although this tax-free portion would be
in the first place when it was proposed reduced by any Social Security or
last session. railroad benefits received.
"I think it was unfortunate that the bill "The significant effect of the $7,200
got through at all because a lot of people exemption means that all but a few of the
had to worry needlessly,"she said. "I am retired people in the state will not have to
hopeful that this reform measure will pay state income tax on their retirement
pass the full senate." benefits," Senator Knaak said.
Before the last legislative session, Unfortunately,Knaak said,an effort to
Senator Knaak explained, people repeal a law passed last session which
receiving public pensions did not have to made National Guard and military pay
pay taxes on them while private pensions subject to income tax failed in the com-
were taxed. mittee by a one-vote margin.
"Last session lawmakers tried to "With this tax in place," Knaak said,
change this to$7,200 exclusion for public "it will make it that much more difficult
pensions to put them more in line with for the National Guard and the military to
private pensions," she continued. attract and retain people at a time when
"However, the language did not do what both are suffering a lack of candidates."