THE VIRGINIAN-PILOT 
              Copyright (c) 1994, Landmark Communications, Inc.

DATE: Saturday, August 6, 1994               TAG: 9408050018
SECTION: FRONT                    PAGE: A14  EDITION: FINAL 
TYPE: Letter 
                                             LENGTH: Short :   34 lines

TAX PLAN IS DISCRIMINATORY

Regarding Del. George Heilig's letter (July 26) expounding on how gracious the state is about returning illegally collected taxes to federal retirees: I remind Mr. Heilig that we had to sue to recover these taxes, as the commonwealth fought for five years, knowing it was wrong, morally if not legally.

The idea that the Democratic Party brought about this refund is ridiculous. The party, along with its attorney general, fought the refund through two administrations. I like to feel that Mary Sue Terry's stand cost her the governorship.

Virginia is again taxing in a discriminatory manner, taxing citizens who draw Social Security differently from those who do not. Those on Social Security must reduce the old-age deduction by the amount of Social Security income. Those not drawing Social Security may take the full deduction.

I don't think the General Assembly changed the law in the interest of elderly taxpayers or to simplify the tax law, but to forestall future lawsuits. As it stands, the law is as discriminatory as was the taxing of retired federal employees' pensions while not taxing the pensions of state and city employees.

ALFRED E. S. ARMFIELD

Norfolk, July 28, 1994 by CNB