California is the only state fully taxing military retiree pay. Consequently, these incredible veterans are leaving our state to reside in a state where their retiree pay is not taxed. In 2018, SDMAC produced a study on the cost and benefits of exempting military retiree pay from state income taxes, and it shows that any lost income tax revenue is offset by revenue in the form of sales taxes, property taxes, fees, and income taxes from “second career” and spouse employment. We need to keep military retirees in California! Their skills, work certifications, and experience place them in high demand, and their spirit of service makes them ideal citizens. Military retirees are our teachers, nurses, first responders, coaches, and community volunteers.