LETTERS: BILL TO EXEMPT PENSIONS HAS IMPACT ERRORS

To the editor:

House Bill 59 in the Missouri House would exempt all pensions from state income tax for those 65 years of age and older.

Many other states have started competing for retirees by exempting their pensions from income tax. Missouri has not joined in the competition. Passage of this bill would make Missouri very attractive to retirees. It would soon produce an increase in total revenue.

The fiscal review of HB59 used the total pensions of all retirees. A 6 percent tax rate was used in calculating the loss of income-tax revenue. That rate would apply only for the very few who have other income that would put them in the 6 percent bracket. Flaws in the review were clearly pointed out.

The Ways And Means Committee was told about problems in the fiscal review by several people before and during the public hearing Feb. 27.

The fiscal review was revised March 8. The new estimate considered that 70 percent of retirees are over 65. The 6 percent rate was still used. It was not considered that a large number of those over 65 are only receiving Social Security or survivor benefits. It is hard to imagine someone trying to live on Social Security or a survivor benefit being in the top tax bracket.

It is quite normal for members of the General Assembly to have various priorities and opinions on issues. However, chicanery makes it difficult for those members who are honest and dedicated to work for the benefit of our state and their constituency.

JOHN A SNOWBERGER

West Plains, Mo.