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States Told Not to Tax U.S. Pensions

March 28, 1989|\o7 From Times wire services \f7

WASHINGTON — States may not tax federal pensions while exempting the pensions of retired state and local government workers, the Supreme Court ruled today.

By an 8-1 vote, the justices struck down Michigan's differing tax treatment of the pensions received by retired government employees.


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The challenged Michigan law "violates principles of intergovernmental tax immunity by favoring retired state and local government employees over retired federal employees," Justice Anthony M. Kennedy wrote for the court.

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