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Back to the topic at hand - I for one plan to move back to Massachusetts at some point in large part because Rhode Island taxes retirement income. If they changed the law there is a decent chance my wife and I would stay. Long term I wouldn't be surprised if changing this law generated more income for the state due to people who think like me (which is to say with their income in mind) and continue to spend most of their money here and pay property and sales taxes.
Back to the topic at hand - I for one plan to move back to Massachusetts at some point in large part because Rhode Island taxes retirement income. If they changed the law there is a decent chance my wife and I would stay. Long term I wouldn't be surprised if changing this law generated more income for the state due to people who think like me (which is to say with their income in mind) and continue to spend most of their money here and pay property and sales taxes.
It would be interesting to see an analysis. So far, all I've seen is that it would cost the state 25 million.
We left RI almost 5 years ago because of the taxed Social Security benefits and the taxed pension policies in RI. Not everyone in this economy has been able to stash enough money to live comfortably in RI as a retiree. I for one hope they change this policy. I believe many more RI'ders would stay in RI if our retirement benefits weren't taxed. The winter weather is a deterrent to staying for some but I don't think it's the primary reason people relocate..it's the high expense in general for people living on a fixed income.
Back to the topic at hand - I for one plan to move back to Massachusetts at some point in large part because Rhode Island taxes retirement income. If they changed the law there is a decent chance my wife and I would stay. Long term I wouldn't be surprised if changing this law generated more income for the state due to people who think like me (which is to say with their income in mind) and continue to spend most of their money here and pay property and sales taxes.
I think the main impact of not taxing retirees would be that the back-and-forth Snow Birds would change their residency back to Rhode Island. I don't know how much actual income that would bring back to the state. As for the change causing retirees to stay in RI, rather than moving to where it's warm, I don't know?
PROVIDENCE — House Speaker Nicholas Mattiello on Thursday named as one of his top 2015 legislative priorities the exemption of “all pension and retirement income†— including Social Security benefits — from the state income tax.
If enacted, Rhode Island would join 27 other states, including Massachusetts and Maine, and the District of Columbia that exempt Social Security income from taxation.
Finally someone gets it. It will possibly keep multi homed retirees as Rhode Island citizens without having to become legal residents of Florida, North Carolina, South Carolina and other favorite states Rhode Islanders like to share their living with. Yes, this is just part of the equation to keep middle class retirees as Rhode Island residents.
Well not only are you losing people like me who leave the state due to taxes on retirement income but you also lose folks who choose not to move to Rhode Island when they retire and end up elsewhere.
I live in Providence. Three of my neighbors retired this year. They all spent the fall readying their houses to be sold in the spring.
All three are headed south. Two to South Carolina, one to Florida.
One of my co-workers retired from the Pawtucket school department last February. Though she lives in the burbs.....Florida is on her radar screen.
Another co-worker (on her second career) who is a State retiree along with her husband - don't want to stay in the RI burbs either. Tired of RI politics, tired of the winter and tired of their property taxes going through the roof. When I showed her husband my tax statement from my new retirement home in NC........he just about stroked out. New house, 2500 sq ft, .55 acre lot, inground salt water pool, golf course home with taxes of $1688 per year. Electric rates .10 kwh......low heating costs because it doesn't get that cold.........
Fact is, your retirement dollars go farther living somewhere else than RI.. and the rest of the Northeast for that matter.
Today's seniors approaching retirement are healthier, better educated and more active. They are also wealthier than the past senior populations. And some of us would like to have an estate to pass on to those we will leave behind.
And for the young to middle age people who don't like to hear any negative talk about their beloved state..it is just a reality that retired people leave RI because it's just not affordable. I don't hate RI..my roots are there..my family is there..but I feel we had no option. It's actually very sad that the RI general assembly hasn't been able to see this problem for many years. Hopefully things will change.
I live in Providence. Three of my neighbors retired this year. They all spent the fall readying their houses to be sold in the spring.
All three are headed south. Two to South Carolina, one to Florida.
One of my co-workers retired from the Pawtucket school department last February. Though she lives in the burbs.....Florida is on her radar screen.
Another co-worker (on her second career) who is a State retiree along with her husband - don't want to stay in the RI burbs either. Tired of RI politics, tired of the winter and tired of their property taxes going through the roof. When I showed her husband my tax statement from my new retirement home in NC........he just about stroked out. New house, 2500 sq ft, .55 acre lot, inground salt water pool, golf course home with taxes of $1688 per year. Electric rates .10 kwh......low heating costs because it doesn't get that cold.........
Fact is, your retirement dollars go farther living somewhere else than RI.. and the rest of the Northeast for that matter.
Today's seniors approaching retirement are healthier, better educated and more active. They are also wealthier than the past senior populations. And some of us would like to have an estate to pass on to those we will leave behind.
Just curious: were taxes eliminated on all retirement income, as would you stay in RI, or would you leave anyway because of the weather? I mean, taxes can be eliminated, but winter can't. As IM stated:
Quote:
Originally Posted by independent man
I think the main impact of not taxing retirees would be that the back-and-forth Snow Birds would change their residency back to Rhode Island. I don't know how much actual income that would bring back to the state. As for the change causing retirees to stay in RI, rather than moving to where it's warm, I don't know?
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