Proposed Exemption of Personal Income Tax (PIT) for Certain Veterans, Military Retirees, and Widows of Retirees—Economic Boon for New Mexico
Several years ago, Congress enacted the “Post 9-11 Veterans Educational Assistance Act,” which provides financial assistance to those the tens of thousands who leave the military services and seek college educations on their road to future success. This generous program offers qualifying veterans up to 36 months of almost fully paid college tuition, housing allowances, book, and fees—a total of $52,000 per veteran. New Mexico needs to provide incentives to encourage many former service men and women to come to our state for their education, bringing with them the Federal funded stipends that will be spent in New Mexico, producing badly needed economic development and increased tax revenues. An income tax exemption should be granted to recently separated military men and women who are enrolled in our colleges and universities.
Similarly, New Mexico could attract many more of the total 60,000 military people who retire each year by granting income tax exemptions to entice them to come to New Mexico to begin a second career. They are mature, patriotic, and law-abiding citizens who bring talent and a tradition of hard work to our state. Retirees in particular bring Federal funded retired pay to enhance economic development and add to tax revenues. Many start new businesses. Additionally, they impose no burdens on any state benefits programs, since they have health services as a part of their retirement benefits. Retirees’ widows or widowers should likewise be encouraged to stay in New Mexico by extending such exemptions to their Survival Benefit Program and other Federal earnings.
Contact your State legislators to urge them to support personal income tax exemptions for veterans enrolled in colleges, military retirees, and widows of retired military personnel. Use this link to find your legislator:http://www.nmlegis.gov/lcs/legislator_search.aspx