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"ALBUMOAA" - ALBUQUERQUE CHAPTER
The Military Officers Association of America
Albuquerque, New Mexico |
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ALBUQUERQUE CHAPTER, MOAA
POC: Colonel Joe Cantergiani, USAF (Ret) - coljoeabqmoaa@earthlink.net
SIGNIFICANT ISSUES
New Mexico Personal Income Tax (PIT)
Since 2003 an extensive effort has been invested in developing support for a PIT exemption for retired military. This action could be potentially beneficial to the State if it attracted sufficient new retirees (their talents, their income and assets) to cover the tax loss initially incurred. Businesses state-wide would benefit from the relocation of these retirees. Additionally, it was envisioned that eliminating the PIT on retired military service personnel (RMSP) would even provide increased tax revenues through the tax placed on the second-career earnings of RMSP entering the civilian workplace for their “second careers.” It was seen that additional revenues would be provided as well by the incremental sales tax incurred by their purchases from NM businesses (e.g., cars, houses, appliances, etc.). The expenditures generated by the RMSP would also provide a multiplier effect that would create additional employment.
In 2007 a proposal was advanced to create a “Task Force” to evaluate the feasibility of implementing this PIT exemption. The Task Force would be chaired by a leading economist from the world of academia. The vote in both chambers of the NM Legislature was unanimously affirmative. Dr. Anthony Popp, Head of the Economics Department at New Mexico State University in Las Cruces, was selected to lead this Task Force. He is regarded as a leading authority on the consequences and effects of “Federal Transfer Funds.” RMSP pension funds are an important element of such funds. As proven in 17 other states which provide a PIT exemption, significant gains in the numbers of military retirees moved to those states and resultant benefits to the economy were achieved.
The latest legislative proposal (for formation of the “Task Force”) was advanced with the Military Officers Association of America (MOAA) being the titular proponent. In fact, the concept has little to do with the MOAA. The MOAA, as its name reflects, is an organization whose membership is open to officers only—about 2% of our NM retired military personnel. 74% of our RMSP is comprised of former enlisted personnel who served the country with loyalty. Elimination of the PIT on RMSP would offer the greatest benefits to the enlisted cadre of personnel. Admittedly, retired officers would also benefit, but this legislation is intended to be beneficial to all retirees, their spouses and widows.
The proposed Task Force evaluation is critical to the success of ever achieving a PIT exemption for RMSP—and the subsequent beneficial economic outcome for the State.
NATIONAL MOAA
POC: MOAA Web Site - moaa.org
POC: LEGISLATIVE ACTION CENTER -moaa.org/lac/Index.htm
POC: COUNCIL & CHAPTERS - moaa.org/comm/comm_chapters/index.htm
SIGNIFICANT ISSUES - SBP/DIC - NDAA 2008
Issue 1: The Veterans' Disability Benefits Commission (VDBC) has recommended elimination of current unfair laws that make disabled military retirees and survivors forfeit part or all of their service earned military compensation when military service caused the servicemember's disability or death.
1. Disabled Veterans Tax (Concurrent Receipt).
MOAA believes that military retired pay is earned by arduous service and should not have to be forfeited because the member also suffers the misfortune of incurring a service-caused disability.
Recommendation: House: Cosponsor/pass Rep. Marshall's H.R. 333/ Rep. Bilirakis' H.R. 303.
Senate: Cosponsor/pass Sen. Reid's 439.
2. Military Widows Tax (SBP-DIC Offset)
Current law requires the surviving spouse of an active-duty or retired member who dies of a service connected cause to give up $1 of military Survivor Benefit Plan (SBP) annuity for each $1 received in VA Dependency and Indemnity Compensation (DIC - $1,091 monthly, paid only
for deaths caused by service). The offset wipes out most or all of the SBP check for the vast majority of survivors.
Recommendation: House: Cosponsor/pass Rep. Ortiz's H.R. 1927/Rep. Brown's H.R. 1589.
Senate: Cosponsor/pass Sen. Nelson's S. 935.
Issue 2: A Pentagon task force has recommended dramatically raising health cost for retired families by:
a. Raising the $460 family TRICARE Prime enrollment fee as high as $2.090.
b. Raising annual $300 family TRICARE Standard fees as high as $1,270.
c. Establishing an annual $120 enrollment fee per person for TRICARE For Life.
d. Raising retail pharmacy copays for all from $3 generic/$9 brand?$22 non-formulary to $15/$25/$45.
Bar Disproportional Military Health Fee Increases. DoD asserts that rising health care costs are competing with weapons programs. Government officials want the increases to bring military beneficiary costs more in line with civilian practices. MOAA maintains that our Nation's obligation to military retirees exceeds corporate obligations. The government has a moral and practical reciprocal obligation to provide benefits commensurate with the extraordinary commitments it requires from career servicemembers. The country can afford to pay for BOTH weapons and military health care.
Recommendation: Reject DoD proposed fee hikes for FY08 and support bills establishing fee limits.
House: Cosponsor/pass Reps. Edwards' and Jones' H.R. 579.
Senate: Cosponsor/pass Sens. Lautenberg's and Hagel's S. 604.
STATE
POC: John M. Garcia, Cabinet Secretary, Department of Veterans Services - http://www.dvs.state.nm.us
POC: State Legislators: http://legis.state.nm.us/lcs/legislatorsearch.asp
SIGNIFICANT ISSUES
See significant issues PIT under Albuquerque Chapter.
CITY/COUNTY
POC: Veterans Liaison, City of Albuquerque - Please Call: 505-681-2871
NATIONAL
Washington, DC Office
Senator Jeff Bingaman - Telephone: 202-224-5521
Email: senator_bingaman@bingaman.senate.gov
703 Hart Senate Office Building, Washington, DC 20510
Senator Tom Udall - Telephone: 202-224-6621
Email: tomudall.senate.gov/contact/contact/.cfm
B400D Dirksen Senate Office Building, Washington, DC 20510-3101
Representative Martin Heinrich - http://heinrich.house.gov/
Representative Harry Teague - http://teague.house.gov/
Representative Ben Ray Lujan - http://lujan.house.gov
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