Tax benefit sought for retired CIA employees

Phillip Schneider of Mendota Heights retired from his work with the Central Intelligence Agency after 28 years of service.

He reminded the House Taxes Committee Wednesday of a lesson learned that “the spear of the sword goes first.” In other words – sometimes the work of the CIA is preventative, “so the military does not have to follow.”

That brought him to Rep. Rick Hansen (DFL-South St. Paul) to advocate for a state income tax subtraction for CIA retirement pay, similar to one offered to retired military. HF503, sponsored by Hansen would allow for the subtraction. The bill, has amended, was held over for possible omnibus bill inclusion. There is no Senate companion.

“Many times on the federal level, when something is passed for the veterans, they forget that there is another group of people who are often involved … so, hopefully the guys with the tanks won’t have to,” Schneider said. He estimates there are probably a handful of CIA retirees in the state, and, therefore, the fiscal impact to the state’s General Fund is unknown.

Rep. Jim Davnie (DFL-Mpls) said these people are put in dangerous situations without the luxury of carrying a weapon to defend themselves. “The question before us is if these folks serve our country overseas, face danger do an honorable job. Do they not deserve the same tax benefit and respect we appropriately provide our veterans?”