A Califordable Plan to Keep Veterans in California and Protect Disabled Heroes from Democrat Tax Policies

THE PROBLEM

California is home to one of the largest veteran populations in the country. Yet under

decades of California Democrat one-party rule, veterans have been overtaxed and

increasingly pushed out of the state they defended.

For years, California fully taxed military retirement income while most other states did not,

and it still taxes the majority of that income today. At the same time, 100 percent disabled

veterans face property tax bills tied to housing prices inflated by state housing policies.

This is not accidental. It reflects a governing approach that prioritizes revenue extraction and

regulatory expansion over stability and retention. Veterans have been caught in that system.

As governor Steve Hilton will honor our veterans and stop the punishment they are receiving

from these cruel and disrespectful Democrat tax policies.

The Democrat Policies Driving Veterans Out of California

For decades, California Democrats chose to fully tax military retirement income while nearly

every other state moved toward exemption. Only after sustained outmigration did they adopt

a limited $20,000 exclusion, capped by income and set to expire. That partial measure does

not restore fairness and competitiveness.

The consequences are measurable. Between 2010 and 2022, California lost more than 24,000

military retirees. That represents roughly $700 million per year in federal retirement income

leaving local communities.

At the same time, state housing restrictions, along with extreme labor and environmental

regulations, drove prices to historic highs. Yet property tax protections for 100 percent

disabled veterans were not aligned with real market conditions. In 2026, the basic exemption

is roughly $180,000 while the median home price approaches $900,000.

The structure is straightforward. Service pensions are taxed. Housing costs are inflated by

bad policy. Relief arrives late and in limited form. Veterans are forced to absorb the difference.

Steve’s Plan

1. Fully Exempt Military Retirement Income

California should fully exempt military retirement pay from state income tax. Steve will

support a permanent 100 percent exemption and work with the Legislature to make it law.

Long term military service should not be penalized in this state.

2. Strengthen Property Tax Relief for 100 Percent Disabled Veterans

Property tax protections must reflect actual housing costs. Steve will expand and modernize

the exemption so it meaningfully offsets today’s market values and prevents disabled

veterans and surviving spouses from being taxed out of their primary residence. The objective

is durable housing stability.

3. Make Veteran Retention a Statewide Priority

California should compete to retain veterans rather than drive them away. Steve will make

veteran retention an explicit statewide objective and align tax and housing policy

accordingly. Veteran households should be honored and recognized as economic and civic

assets.

California does not need temporary exclusions or symbolic adjustments. It needs a tax

structure that retains veteran talent, honors and protects disabled heroes, and keeps federal

retirement dollars in local communities. These reforms are achievable, economically sound,

and consistent with a government that takes responsibility for the consequences of its

policies.