California bill could end state income tax on military pension

(KGTV) - Income taxes on military pension is pushing a lot of people out of California. A new study proves that taking those taxes away would actually help both veterans and the state. 

For the people who served their country, it's tough to make it in California. 

"My wife just retired," said Matthew Schillingburg. "I just retired and so we're all on disposable income right now."

He served in the army for more than 20 years. When his income is taxed by the state it can be hard to get by. 

"The thing that’s really holding us here, this community right here in San Diego that we grew up and love so much, our kids and our grandkids here," Schillingburg added.

He joins 1.8 million military veterans who live in California. Many of them are looking to leave the state for more affordable areas where their pension won't take a hit. 

Assembly Bill 2394 is trying to change that. 

"If we can eliminate that, that helps us have more disposable income and we can consume more in the community that we love so much," said Schillingburg.

According to a new study, if veterans were exempt from state taxes there would be big changes by the year 2025. 

More than 12,000 jobs would be added to the economy, along with $830 million in total personal income, $56 million in state and local taxes and $2 billion in total business sales. 

The bill is currently in committee. If it does pass, it could go into effect as soon as January 2019. 

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