[Congressional Record Volume 141, Number 2 (Thursday, January 5, 1995)]
[Extensions of Remarks]
[Page E42]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


[[Page E42]]
                 LEGISLATION TO ELIMINATE THE SOURCE TAX

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                       HON. BARBARA F. VUCANOVICH

                               of nevada

                    in the house of representatives

                       Wednesday, January 4, 1995
  Mrs. VUCANOVICH. Mr. Speaker, States with a source tax levy a tax on 
the retirement income of retirees who no longer reside in the State. 
Thousands of seniors across the country receive tax bills from States 
even though many of these retirees have not lived in that State for 
years. In every Congress since 1988, I have introduced legislation to 
prohibit the source tax.
  I was very pleased last spring, when the Senate unanimously passed a 
source tax bill. I was even more pleased when, in the final week of the 
103d Congress, the House also passed a bill to prohibit the source tax. 
Unfortunately, the Senate and House versions were not identical and 
there was no time for a conference.
  Today I am again introducing a proposal to prohibit the source tax. 
The bill I am introducing will exempt all retirement income from State 
income tax if the individual receiving the income is not a resident of 
the State. This legislation will not place any cost on the Federal 
Government and may even cause a modest increase in Federal revenues.
  This measure differs in two ways from the bill I sponsored in the 
103d Congress. That bill included a cap on the amount of lump-sum 
distributions exempted from the source tax. My new bill will have no 
caps. Also, for the 104th Congress the measure covers all retirement 
plans, not just those that qualify for special tax treatment by the 
Federal Government. These changes, which extend the measure to all 
retirement income, make the bill more fair because it will treat all 
retirees equally.
  Mr. Speaker, I urge my colleagues to support me in this cause. 
Retirees across the Nation will thank you.


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