[Congressional Record Volume 141, Number 61 (Monday, April 3, 1995)]
[Senate]
[Page S5078]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                         ABOLISH THE SOURCE TAX

 Mr. GORTON. Mr. President, today I speak in support of an 
important piece of legislation designated to eliminate an unfair 
practice affecting thousands of senior citizens in my home State of 
Washington. It is S. 44, introduced by my distinguished colleagues from 
Nevada, Senators Reid and Bryan, to abolish the so-called source tax.
  As it stands today, retirees living anywhere in the country may find 
that their retirement pensions are taxed by a State in which they no 
longer reside. A State may tax a nonresident's pension simply because 
the person spent all, or part of, his or her working years in that 
State. This unjust tax is, in many cases, automatically deducted from 
the retiree's pension benefit every month.
  Retirees are outraged because their taxes are going to pay for 
services of which they cannot take advantage. They are not able to 
partake in the senior services, medical services, transportation 
facilities, or public parks in States where they no longer reside. They 
do not vote in those States and cannot influence how their tax dollars 
are being spent. They are, however, forced to pay taxes to support 
these services so that others may benefit from them. The seniors in my 
State characterize this practice as taxation without representation. I 
agree.
  The source tax is not only taxation without representation, but also 
a further drain on the already limited and fixed incomes of our senior 
citizens. Seniors, dependent upon fixed incomes to pay their bills and 
buy their groceries, are shocked when they learn that they may not have 
enough to get by because of the taxation policies of other States.
  Many senior citizens have written to me about this burdensome 
practice. Seniors throughout the State of Washington have expressed 
their outrage and frustration at being taxed by other States. And, as I 
travel around the State listening to the concerns of the citizens, this 
issue is continually brought to my attention.
  We need to correct this practice now. That is why I cosponsored S. 
44, the Source Tax Elimination Act. I encourage my colleagues to help 
me pass this bill and restore tax fairness to our retirees.


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