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The Boothbay Register - Online Edition

Jun 17, 1999 "Serving The Communities of Boothbay, Boothbay Harbor, Southport, Edgecomb" Vol 123, Number 24

Honey From The House

State Representative Ken Honey

Last Thursday and Friday my telephone rang off the hook. The issue driving these calls was a bill recently passed by the Legislature, including my support, ``An Act to Provide Equal Treatment in the Taxation of Public Pensions.''

Maine currently does not tax any Social Security benefits, but the benefits of retired teachers, state workers, federal workers and military personnel enrolled in other pension programs are FULLY taxable. Who wouldn't support giving these retirees the same tax breaks as social security retirees you ask?

The original bill, as submitted would have rectified this injustice. AARP and all of the other retirees' organizations supported the bill as written.

However, it is at this point that the plot thickened. Mistakes can and do happen, especially when the Legislature is working up to and past the midnight hour for days on end. Occasionally a committee of jurisdiction will come up with a bad recommendation to the full Legislature (in this case the Taxation Committee). Amendments were added to this legislation during debate on the House floor which were not fully understood by most of the House membership, including myself and even members of the Taxation Committee.

The bill that was finally passed by the full Legislature would have taxed 50% of Social Security benefits of retirees whose income exceeds $25,000 for single filers and $32,000 for married couples filing jointly. The bill would have taxed 85 percent of the Social Security benefits of retirees whose incomes exceeds $34,000 for single filers and $44,000 for married couples filing jointly. A bad solution to a worthy problem.

I like many others, once I recognized the pitfalls and injustices buried in this bill, contacted Governor King urging him to veto the bill, which he has done.

I am well aware that teachers, military personnel and government workers are presently being treated unfairly, but I am also aware it is terrible tax policy to be creating a tax break for them by taxing Social Security benefits of Maine retirees. This was completely out of step with the goal of keeping and attracting retirees to Maine.

Hopefully the tax injustices of retired teachers, state workers, federal workers and military workers will be addressed when the Legislature reconvenes in January, 2000.

I hope this clears up my position on this well-intentioned, but poorly constructed piece of legislation. To quote Rep. John Buck, R-Yarmouth, who grew up on Southport; ``Those that were asleep at the switch are going to change their votes,'' which I intend to do on Veto Day, Friday, June 18.

As always, feel free to contact me on ANY issue. Until next time - ``Hang in there.''



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