Sens. Leone, Duff Propose 100% State Income Tax Exemption for Military Retirement Pay

State Sen. Carlo Leone, a Democrat from Stamford, and Senate Majority Leader Bob Duff, a Norwalk Democrat, announced Wednesday that they’re proposing a bigger tax break for retired veterans.

Their Substitute Senate Bill No. 520 would provide a 100 percent exemption from the state income tax for federally taxable military retirement pay. (At the bottom of this article, you can see a 3 1/2 minute YouTube video of part of their announcement, made at the Darien VFW building and provided by the state Senate Democrats office.)

“We cannot afford to lose our retired veterans to other states,” Leone said in a news release. “Across Connecticut you’ll find that many of our most dedicated volunteers and public servants are veterans. If we want them to stay here with their families, we need to keep Connecticut competitive with our neighbors. We can and must do better for our retired veterans.”

Duff said in the news release: “With more than 1 million veterans slated to leave active service nationwide by 2020, it is paramount that we make Connecticut a more retiree-friendly state for veterans. When Massachusetts and New York offer a 100 percent exemption and Connecticut doesn’t, we lose our competitive edge. Now is the time for us to show our vets that no state values them more than ours.”

Duff’s district includes Norwalk and part of Darien. Leone’s district extends from Stamford into the rest of Darien.

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Connecticut currently has a 50 percent exemption of federal retirement pay to retired members of the U.S. military, Coast Guard and National Guard.

Thirteen other states already offer a full exemption, including Massachusetts and New York.

“Anyone living on a fixed income is already fighting an uphill battle and this bill will at least give them relief from the pressure of income tax payments on their retirement pay,” said Phil Kraft, Post Commander of the Darien VFW, in the news release.