Bill Shipp: Perdue’s tax-elimination plan for seniors not all it appears to be

Bill Shipp writes about Gov. Sonny Perdue's campaign promise to "completely eliminate the state income tax for the retirement income of Georgians 65 and older":

• Georgia does not levy income taxes on Social Security benefits. Most Georgians look at Social Security at the centerpiece of their retirement. Perdue's promise has no effect on Social Security.

• In addition to the Social Security exemption, Georgians over 62 may now exclude the first $25,000 of retirement income for taxable purposes.

• That retirement exemption goes up to $30,000 in 2007 and $35,000 in 2008. (Example: Under current law, in 2008 and beyond, if both spouses are over 62, then the first $70,000 of their annual retirement income will be tax-free in Georgia. Plus, all their Social Security benefits are exempt from state income taxes.)

So unless you're hauling down a golden-parachute pension from a corporate executive suite or a big-time union payoff [or rich and raking in fat capital gains], the "Sonny Do" tax-elimination plan will not put any extra bucks in your pocket.

Suppose an old fellow like me is still working. Will Sonny's plan help out?

"Not the way I read it," says my numbers guy. "This is for retirees only." [Apparently the tax break is intended to apply only to retirement income -- like pensions -- not other wages that senior citizens might earn.]