Pensions are exempt, from what I have seen. That would be 0% Federal Income Tax. We’re not sure yet on what would or would not be taxable on the Sales Tax. I suspect some of the reports of exemptions for retirement might be true, but there is not enough information to know.
As of right now, they are not..........And for what it's worth, my pension has been exempt from state taxes here in Michigan.....Our newly elected governor Snyder wants to change that too........Not sure if it will affect me but if it does, then it will be nominal and I have no problem with that.
A few things would make me happier with the 9-9-9 plan:
1) Exemption of Social Security and RMDs from the income portion
2) Exemption of ALL used goods from the sales tax, not just garage sale type stuff.
3) Provision that any rate hikes must occur uniformly across all three portions: Income, Sales, and Business.
4) Provision that the law cannot be changed, only struck down.