The Wall Street Journal reports that “with a surge of retirements expected as the nation’s armed forces contract after two wars, lawmakers in 19 states are seeking to create or expand income-tax breaks for military pensions in hopes of attracting highly skilled veterans.”  

“More than 65 such bills are pending in statehouses, according to the National Conference of State Legislatures, an uptick from recent years. Last year, Iowa enacted a full exemption and Nebraska a partial break for recent military retirees.”  

“The plans face some resistance from critics who say states can’t afford the loss of revenue. Others question the fairness of giving veterans special breaks unavailable to most retirees.”