Retirees Sue Over New Tax Law

United Press International

A group representing almost 2 million federal retirees said today it has filed a class action lawsuit challenging the constitutionality of parts of the new Gramm-Rudman balanced-budget law.

The group said it filed suit in federal court Friday challenging provisions of the Gramm-Rudman law that suspended payment of a 3.1% cost-of-living adjustment for 1.9 million federal retirees. The adjustment took effect in December, the group said, and was to be paid in January. The retiree group said the new law constitutes seizure of property without just compensation, in violation of the Fifth Amendment.

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