Maine lawmaker wants to remove income tax on state pensions


    Senator Shenna Bellows says right now, Maine does not tax the Social Security incomes of retirees, but there is still a state income tax on state pensions. (WGME)

    PORTLAND (WGME) -- Right now, retired teachers and state employees in Maine pay a state income tax on their pensions, but one state lawmaker is introducing legislation to change that.

    Senator Shenna Bellows says right now, Maine does not tax the Social Security incomes of retirees, but there is still a state income tax on state pensions.

    Retired teachers and state employees say they are being punished just because they draw from a pension, instead of Social Security.

    “I think it's only fair that state employees, who do not get Social Security but do get state retirement, should be treated in a similar manner,” retired Maine state employee Harold Booth said.

    "Not only are our teachers and state workers working for lower pay during their careers than they would have earned in the private sector," Bellows said. "They're then taking a big hit in their retirement because they're being taxed on their retirement income in a way that folks in the private sector are not.

    The taxation committee heard arguments for and against the bill Wednesday.

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