Bill Description: Senate Bill 1428 would exempt military retirement benefits from state income tax regardless of the age or disability classification of the retired member or of the widow or widower of such retired member.

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Does it increase government redistribution of wealth? Examples include the use of tax policy or other incentives to reward specific interest groups, businesses, politicians, or government employees with special favors or perks; transfer payments; and hiring additional government employees. Conversely, does it decrease government redistribution of wealth?

Senate Bill 1428 would amend Section 63-3022A, Idaho Code, which exempts certain retirement benefits from state income tax. Currently, military retirement benefits are exempt if the retired servicemember is at least age 65 or at least age 62 and classified as disabled. Senate Bill 1428 would remove these age requirements, exempting all military retirement benefits from state income tax "regardless of the age or disability classification of the retired member or of the widow or widower of such retired member."

There is a significant difference between targeted tax cuts and carve-outs that only benefit a small subset of the population and broad tax cuts funded through reduced spending that lessen the burden of government on hardworking Idahoans. 

Unfortunately, Senate Bill 1428 proposes the former at a cost of $12.2 million annually, with no offsetting reductions in spending, meaning that other taxpayers are effectively required to make up the reduced revenue. 

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