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House Tax Bill Called Unfair to U.S. Retirees

January 18, 1986

When the U.S. Senate begins debate on the tax reform bill passed by the House of Representatives it should give top priority to a provision that impacts unfairly on working men and women. That provision eliminates a post-retirement tax-free period for postal, federal, state and local government workers who retire after July 1, 1986.

Literally millions could be affected by this unfair tax on their retirement.

Under the current system, annuity benefits are not subject to taxes until the employee has recovered the money he or she contributed to the fund--which was already taxed as part of salary--approximately an 18-month period. The new plan would take a portion of the annuity immediately. This amounts to double taxation.

The House-approved tax bill contains many positive revisions in the federal tax code, and we strongly support them. But the double taxation on our federal and postal retirees is one provision that we vehemently oppose.

The National Assn. of Letter Carriers will make its voice heard on this issue. We intend to do our utmost to restore the tax-free period for Civil Service retirees, while retaining other benefits for working people.

VINCENT R. SOMBROTTO

President

National Assn. of Letter Carriers

Washington

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