By Rick Maze - Staff writer
Posted : Tuesday Mar 20, 2007 13:11:28 EDT
A bill exempting all military pay and benefits from federal income taxes was introduced Monday in the House of Representatives.
“U.S. soldiers are fighting hard to protect our freedoms, and they should be protected from the long arm of the IRS,” said Rep. John Culberson, R-Texas, the chief sponsor of a bill that has four Republican cosponsors.
Culberson said the bill, HR 1559, which he is calling the Armed Forces Tax Relief Act, “will allow soldiers to concentrate on defending America, rather than worrying about paying their taxes.”
Culberson is not the first person to propose federal tax exclusions for all service members. Similar legislation has rarely received any serious attention in Congress, because the drop in federal tax revenues would have to be made up by increasing taxes on other Americans, or by cutting spending on federal entitlement programs, such as Medicare, Medicaid, Social Security and military and federal civilian retired pay — all unpopular choices for politicians, according to House aides working on military personnel issues. The aides asked not to be identified because they are not authorized to speak to reporters.
The measure was referred to the House Ways and Means Committee, where it is one of several military-related tax measures introduced since the new session of Congress started in January. It is, by far, the most ambitious because it would expand tax exclusions to everyone on active duty. Currently, such exclusions are limited to active-duty members only while serving in combat zones.
Under Culberson’s bill, National Guard and reserve members would still be taxed on their military pay while in a drilling status.
“We owe our military men and women an enormous debt of gratitude for keeping us safe and honorably serving our country. Exempting soldiers from income taxes is the least we can do to repay them for their service,” Culberson said.
Under his bill, all military compensation — including basic pay, special pays and bonuses — would not be counted as income for tax purposes for active-duty members. Military retired pay would still be taxable. The bill would apply to income received in calendar year 2007.
Several bills have been introduced since January that are aimed at helping mobilized Guard and reserve members and their employers by providing tax breaks for making up lost salary while mobilized, hiring temporary replacement workers and for lost production. Just last week, two bills were introduced to provide tax exemptions of up to $2,000 for military members and their families.
Both of those bills are sponsored by Rep. Christopher Carney, D-Pa., a Navy Reserve officer. One would allow a combat-zone tax break for the spouses of deployed service members. When a military member spends a cumulative 90 days in a combat zone, or is hospitalized for combat injuries, their spouses could receive a federal tax deduction of 2 percent of their adjusted gross income, up to a maximum of $2,000. The second bill would give all active-duty service members, and reservists on inactive duty training, the same exclusion, also capped at $2,000 a year.
Carney’s bills, like Culberson’s, are awaiting decisions by the House Ways and Means Committee, which is responsible for passing all tax-related legislation, about whether to package proposed legislation into a single military-related tax bill, or to consider the proposals as it passes a more general collection of tax changes.
A decision on how to proceed is unlikely before the House of Representatives approves an overall spending and revenue plan, which could happen within two weeks.

Not that I'd be against it solely because we're not included, but what about PHS and NOAA officers?

health service... not real military .... see you tomorrow AJ...

Hmmm... Here's a better idea.

Why not outlaw the IRS and the Fedreal Bank. Return our money to being backed by gold and silver again. Lastly, why not end all of those entitlement programs, such as Medicare, Medicaid, Social Security, Welfare, Section 8 Housing, etc.....

Income tax is illegal.

Originally Posted by 5.56X45mm

Hmmm... Here's a better idea.

Why not outlaw the IRS and the Fedreal Bank. Return our money to being backed by gold and silver again. Lastly, why not end all of those entitlement programs, such as Medicare, Medicaid, Social Security, Welfare, Section 8 Housing, etc.....

Income tax is illegal.

Where does it say that?

Do you have any idea what would happen if we did that? Inflation would bankrupt just about everybody. The poor, the elderly and the sick would be tossed into the street, and the US government and economy would completely collapse.

Income tax did not exist before 1913 with the passage of the 16th Amendment. It was never part of what the founding fathers believed in.

Before the 20th Century, folks lived good lives without the help of the nanny state.

The current currency of the United States of America is a fiat currency. The government is under no obligation to give the holder of the Federal Reserve Note the value of said Federal Reserve Note in gold or sliver.

Back in the day, a person was able to go to the government and demand that he/she get the amount of gold or sliver that the dollar was backed by. Today, that is no longer the case.

American Citizens cannot but foreign investors can and still get the gold at $35 US per ounce of gold..

Income tax did not exist before 1913 with the passage of the 16th Amendment. It was never part of what the founding fathers believed in.

By that theory, we need to re legalize slavery. After all, many of the FF believed in Slavery, and most of the FF were against the abolishment of slavery. I wonder if I could get a good price on a new maid on Ebay?

The point is, our government goes by the US Constitution which supersedes what you or I believe in. The fact is Income tax is in the constitution, therefore like it or not its LEGAL.

Before the 20th Century, folks lived good lives without the help of the nanny state.

You left the fact that those 'good lives' were very short ones. The average lifespan was between 30-40 years old. Starvation; Plight; Disease; and War had a way of culling the population back then. 50 years old was considered elderly.

What you are proposing is nothing more than Charles Darwin's "Survival of the Fitest". I think you would find what you are looking for in Siberia, or perhaps the Steppes of Outer Mongolia. Just you vs the Elements.

The current currency of the United States of America is a fiat currency. The government is under no obligation to give the holder of the Federal Reserve Note the value of said Federal Reserve Note in gold or sliver.

Back in the day, a person was able to go to the government and demand that he/she get the amount of gold or sliver that the dollar was backed by. Today, that is no longer the case.

American Citizens cannot but foreign investors can and still get the gold at $35 US per ounce of gold..

Comparing the Economy of 1789 to that of 2006 is comparing Apples and Oranges. The fact is the Gold Standard caused lots of problems because their simply isn't enough Gold in the World to equal the size of the world economy (not even close). The lack of gold in reserve was precisely what triggered the 1929 Great Depression.

I for one do not mind paying taxes as an Active Duty Marine. I have paid taxes all my life. When I retire from the military I will have SS and my Retirement to draw on.

Also this kind of gives me a moral high ground when someone starts to preach about "It's my tax dollars paying your paycheck!". I always say "I pay taxes too. Keep in mind that MY tax dollars also pay MY paycheck."

Kind of odd that we help pay ourselves isn't it?

I can see paying all taxes except that % that puts money in my pocket. I won't always be in the military and I may at some point need to rely on the "entitlement programs".

Originally Posted by Marinerhodes

I for one do not mind paying taxes as an Active Duty Marine. I have paid taxes all my life. When I retire from the military I will have SS and my Retirement to draw on.

Also this kind of gives me a moral high ground when someone starts to preach about "It's my tax dollars paying your paycheck!". I always say "I pay taxes too. Keep in mind that MY tax dollars also pay MY paycheck."

Kind of odd that we help pay ourselves isn't it?

I can see paying all taxes except that % that puts money in my pocket. I won't always be in the military and I may at some point need to rely on the "entitlement programs".

Icome tax does not support SS. That is why you are taxed for SS separately.

I'm not saying taxation is wrong. It's not, but taxing income is wrong. Sells Tax, Toll Tax, etc... those are all okay because it is tax on a certain service. Not just a blank tax on income.

As for when someone tells me about their taxes pays my income while I am writing them a traffic citation. I tell them the samething too. I pay taxes and I get payed from those taxes that are collected. Expect it's not income tax. My pay comes from city taxes like sells tax, toll, property tax (which should also been done away with because it's your land), etc....

5.56

There is only one possible way you could eliminate the income tax without totally bankrupting the country. A Gasoline Tax.

Good luck on getting support for that.


As for the tax exemption on soldiers, I think I am against it. No offense, but their are other occupations that are equally important yet hazardous such as Police officer or Firefighter. And they are not tax exempt. Even in the private sector their are jobs that are extremely hazardous. Fisherman, loggers, miners and anybody who uses a car (taxi drivers, truckers, etc).