Haley, military supporters seek end to military retiree tax

FILE - In this Jan. 9, 2016 file photo, South Carolina Gov. Nikki Haley speaks to the crowd at the Kemp Forum in Columbia, S.C. Haley and South Carolina’s military boosters want to end taxes on military retirement benefits. Haley’s budget calls for slicing $10 million from the state’s coffers to pay for the cut. The plan would ultimately cost the state $33 million every year.(AP Photo/Sean Rayford, File) FILE - In this Jan. 9, 2016 file photo, South Carolina Gov. Nikki Haley speaks to the crowd at the Kemp Forum in Columbia, S.C. Haley and South Carolina’s military boosters want to end taxes on military retirement benefits. Haley’s budget calls for slicing $10 million from the state’s coffers to pay for the cut. The plan would ultimately cost the state $33 million every year.(AP Photo/Sean Rayford, File)

By Associated Press March 9, 2016 1 min read

COLUMBIA, S.C. (AP) – Gov. Nikki Haley and South Carolina’s military boosters want to end taxes on military retirement benefits.

Haley’s budget calls for slicing $10 million from the state’s coffers to pay for the cut. The plan would ultimately cost the state $33 million every year.

Doubters argue the idea isn’t good tax policy because it narrows the state’s tax base.

Supporters say it will attract military retirees looking for a second job after earning a pension for serving 20 years in uniform.

The push comes as lawmakers continue to wrangle over paying for the state’s crumbling roads.