THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Tuesday, June 4, 1996 TAG: 9606040009
SECTION: FRONT PAGE: A14 EDITION: FINAL
TYPE: Letter
LENGTH: 32 lines
Virginia has stuck it to us federal retirees again. However, this time it has selected senior retirees over age 62 and not eligible for Social Security or railroad-retirement benefits as its targets.
It has done this by reducing the 1995 age credit for ages 62-64 from $6,472 to $5,000 and for ages 65 and over from $12,944 to $10,000.
As a senior taxpayer not eligible for Social Security or railroad benefits, filing a joint return with my wife (both of us are over age 65), our 1995 tax cost us $339 ($2,944 x 2 x 5.75 percent) over what it would have cost in 1994.
To add insult to injury, the commissioner of the revenue enclosed a letter explaining that Social Security and railroad beneficiaries would have a tax savings due to the elimination of benefit deductions from their age deduction. (In fact, federally taxable benefits are an addition to the age deduction.)
Due to the fight the state put up in its attempt to keep from paying the illegally collected taxes for years 1985-88, I have to assume that this is the method of recouping federal retirees' tax refunds.
The Allen administration promised us a refund during the election campaign, and it produced a refund (at approximately 76 percent of the amount owed with no interest).
It is time for federal retirees (all will be over 62 eventually) to show their dissatisfaction with the 1995 tax revision at the polls again, as I am sure we had an impact on the past election.
JIMMIE L. ELLIS
Norfolk, May 7, 1996 by CNB