Veterans' groups say Nebraska's tax on military retirement pay is driving people out of the state, but some lawmakers question whether the losses are influenced more by warmer climates and family connections elsewhere.
The Legislature's Revenue Committee heard testimony Thursday on four bills targeting retirement pay.
Two measures would exempt military retirement pay from the state income tax, one would exempt military pensions and Social Security benefits, and one would eliminate taxes on all pensions.
The bills were introduced by Sens. Jim Smith and Bill Kintner of Papillion, Charlie Janssen of Fremont, and Bob Krist of Omaha.
Dan Donovan, the head of a Nebraska veterans group, says the tax climate is a compelling reason for the exodus.
Some lawmakers suggested that the weather and other factors played a larger role.
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