The 4th Branch – a coalition of government employee and retiree organizations committed to leveling the playing field in North Carolina for ALL government retirees through fair taxation – is working to change the law so that all public retirees are treated the same by extending the Bailey settlement to all. To bolster our case, the 4th Branch commissioned a study that shows the many economic advantages to the state of such an extension, which include:
- For every $1 a government retiree saves in state income tax, North Carolina accrues $2.5 in economic benefits. Allowing ALL government retirees to deduct state, local or federal retirement benefits from their adjusted gross income is good policy.
- Without the need to save for retirement, government retirees direct most of their income BACK into the local economy which equals more sales tax revenue.
- New retirees would be attracted to North Carolina with no taxation of government benefits. Most buy homes – and about 20 percent are new housing which generates jobs directly and spending.
- Retirees use fewer public services. Without their own children in school, property taxes from just two retiree households can support one school child in their community.
- Most government retirees are motivated to volunteer in their communities. Based on our recent study, volunteer activities and skill contributions were worth nearly $150 million per year to the state.
Click HERE to see the economic study.