No income tax on pension income in Maine???

[Chuckanut]

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

State's New Trick: Old Dogs - WSJ.com

 

[W2R]

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.

 

[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).

 

[Bestwifeever]

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!

 

[East Texas]

Just one more reason I like living in Texas.

 

[REWahoo]

Sheesh...

 

[East Texas]

The scorpions, fire ants, feral hogs, drought, and wildfires are an added bonus.

 

[REWahoo]

Better, much better...

 

[MichaelB]

Just one more reason I like living in Texas.

aka Baja Oklahoma...

 

[W2R]

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.

 

[Chuckanut]

Just one more reason I like living in Texas.

PSSST........... Arkansas......

 

[FIRE'd@51]

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.

 

[NW-Bound]

Such an equivalent treatment of IRA withdrawal makes too much sense, therefore I suspect will not happen.

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.

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.

 

[East Texas]

aka Baja Oklahoma...

Now that's just bad...

PSSST........... Arkansas......

And that was worse.....

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.

 

[Ed_The_Gypsy]

Just one more reason I like living in Texas.

It does have its attractions.

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).

 

[NW-Bound]

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.

 

[REWahoo]

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...

 

[REWahoo]

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!

 

[Chuckanut]

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.

 

[East Texas]

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.

 

[NW-Bound]

If they do move here they need to have both arms and legs. Those wild hogs are fast!

That's good!

However, there's an easy solution, useful for even hunters with legs. Years ago, I worked with a Texan. He said he used to shoot javelinas, standing in his pickup bed. He said once the first got shot, the rest of them got furious, and they were indeed fast! Ugh!


PS. My state's law prohibits shooting from a vehicle. May be true in Texas also, but I did not know then to ask this guy. But I guess in the boondocks, who would know?

 

[Chuckanut]

Tell them about the power shortages in the Summer.

As I said.... Arkansas.

 

[ohyes]

PSSST........... Arkansas......


What's going on with this? I live here and not getting it? Many retired folks live here. Not where we hope to retire, but what am i missing?

 

[rescueme]

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.

They do where I reside (along with local income tax) on all forms of retirement income, including my IRA withdrawls and SPIA income:

Kiplinger.com

 

[East Texas]

PSSST........... Arkansas......
What's going on with this? I live here and not getting it? Many retired folks live here. Not where we hope to retire, but what am i missing?

No, you're really not missing anything - some of this is just Texican-Bantering. We don't mind y'all coming here on vacations, we just want you to.... how do I politely say this.... go home.

Realistically, all the states are courting the retirees because they inject money into a community and rarely put a strain on welfare-type resources. It's pretty much a win-win until that break-even point of population and resources is hit.

Those of us who live in rural areas like living in rural areas. While we understand the need to have more community income, it comes at a price - usually a higher crime rate, more traffic (strain on existing roads), and sometimes the inability of the new people to integrate into a rural community.