[Wyrd bið ful aræd]

I agree, with the exception that military salaries and pensions are excluded from the tax.

[US Navy Vet]

Nope EVERYONE PAYS:
How about this:
Retired Flag/GO(O-7 and above) IMMEDIATLY gets a 30% Tax on Retirment Pay.
Retired CAPT/COL(0-6) IMMEDIATLY gets a 20% Tax on Retirment Pay.
Retired E-9s(MCPO/SGTMaj)IMMEDIATLY gets a 15% Tax on Retirment Pay.
Everyone else 5% Tax on Retirment Pay.
I am a Retired PO1(E-6).

[EnquiringMind]

Here we go with exceptions.