Originally Posted by braumeister
A few years ago, Ohio realized that they could keep more of the good people retiring from Wright-Patterson AFB (one of the biggest military bases in the country) by exempting military retirement pay from state income tax.
From what I've heard, this has worked out well for the state as well as the retirees. Being a rust belt state, Ohio is in a somewhat similar position as Maine (we lost two seats in Congress this census period).
I have mixed emotions about this. On one hand, I'd absolutely love to have my military pension exempt from state income tax. (I live in VT, a high income tax state.) On the other hand, if it ever came down to a choice, I'd prefer to see the exemption given to active duty troops, particularly junior enlisted who need the break a helluva lot more than I do.
IIRC, when I lived in MD there was an exemption on a portion of military retired pay but it only applied to enlisted folks.