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No income tax on pension income in Maine???
Old 12-11-2011, 03:46 PM   #1
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No income tax on pension income in Maine???

Now here's a possible break for all the pensioners.

State's New Trick: Old Dogs - WSJ.com
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Old 12-11-2011, 04:06 PM   #2
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It's nice to not have to pay Louisiana state income tax on my federal pension income. Since my pension is so tiny, it's more of a psychological boost than anything of great financial impact, but still it's nice to feel like retirees are of value to the state. Even those over 65 with private pensions are not taxed on the first $6,000 here, IIRC.
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Old 12-11-2011, 04:20 PM   #3
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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).
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Old 12-11-2011, 05:14 PM   #4
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I could read only the first two paragraphs of the WSJ story from the OP's link--got it to open via a google search, but then that link gave me only the first 2 paragraphs again when I clicked it a second time. But good idea, Maine!
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Old 12-11-2011, 05:56 PM   #5
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Just one more reason I like living in Texas.
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Old 12-11-2011, 05:57 PM   #6
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Sheesh...
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Old 12-11-2011, 06:06 PM   #7
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The scorpions, fire ants, feral hogs, drought, and wildfires are an added bonus.
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Old 12-11-2011, 06:07 PM   #8
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Better, much better...
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Old 12-11-2011, 06:15 PM   #9
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Just one more reason I like living in Texas.
aka Baja Oklahoma...
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Old 12-11-2011, 06:17 PM   #10
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The scorpions, fire ants, feral hogs, drought, and wildfires are an added bonus.
Don't forget the property/school taxes. At least in College Station, they were unbelievably high. Of course we loved being able to send our daughter to one of the best public school systems possible, but residents in our school district definitely paid for it.
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Old 12-11-2011, 06:17 PM   #11
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Just one more reason I like living in Texas.
PSSST........... Arkansas......
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Old 12-11-2011, 06:27 PM   #12
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IMO, if a state is going to exempt pension income from state income taxes, it should also exempt IRA withdrawals. For retirees without a defined benefit pension plan, the IRA (or rollover IRA or 401k) is effectively their pension, and should be treated likewise.
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Old 12-11-2011, 06:49 PM   #13
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Such an equivalent treatment of IRA withdrawal makes too much sense, therefore I suspect will not happen.
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IMO, if a state is going to exempt pension income from state income taxes, it should also exempt IRA withdrawals. For retirees without a defined benefit pension plan, the IRA (or rollover IRA or 401k) is effectively their pension, and should be treated likewise.
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feral hogs are an added bonus.
Aspiring early retiree/hunters should take note. See picture below of a feral hog downed by a boy in Alabama. I guess Hogzillas exist in Texas also. Move to Texas now, before this food source gets depleted.




PS. The story behind this is controversial. Search the Web if you are curious.
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Old 12-11-2011, 07:07 PM   #14
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aka Baja Oklahoma...
Now that's just bad...

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PSSST........... Arkansas......
And that was worse.....

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Aspiring early retiree/hunters should take note. .... Move to Texas now, before this food source gets depleted.
Uh, the list was to keep people AWAY from Texas, not invite them in.

The lack of the Louisiana influence did not go unnoticed.
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Old 12-11-2011, 07:07 PM   #15
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Just one more reason I like living in Texas.
It does have its attractions.
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IMO, if a state is going to exempt pension income from state income taxes, it should also exempt IRA withdrawals. For retirees without a defined benefit pension plan, the IRA (or rollover IRA or 401k) is effectively their pension, and should be treated likewise.
The simplest solution is to live in a state with no income tax at all (e.g., TX, WA, etc).

Example: Live on the north side of the Columbia River (WA--no income tax) and shop on the south side (OR--no sales tax).
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Old 12-11-2011, 07:10 PM   #16
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Uh, the list was to keep people AWAY from Texas, not invite them in.
Umm... Sorry!

Expect to see more people with arms coming soon.
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Old 12-11-2011, 07:11 PM   #17
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Live on the north side of the Columbia River (WA--no income tax) and shop on the south side (OR--no sales tax).
Sounds like the perfect location for all retirees! Hurry up and move before the 'no vacancy' signs go up...
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Old 12-11-2011, 07:12 PM   #18
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Expect to see more people with arms coming soon.
If they do move here they need to have both arms and legs. Those wild hogs are fast!
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Old 12-11-2011, 07:14 PM   #19
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I

Example: Live on the north side of the Columbia River (WA--no income tax) and shop on the south side (OR--no sales tax).
Not quite. You are legally bound to report the purchase to the state of WA and pay a tax of about 6% - the states share of the local sales tax.
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Old 12-11-2011, 07:17 PM   #20
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Umm... Sorry!

Expect to see more people with arms coming soon.
We don't mind them coming to Texas as long as they stay in the suburbs: Oklahoma, Arkansas, New Mexico, or Louisiana.
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