A bill was recently introduced to the House of Representatives that would exempt all active duty military pay and benefits from federal taxes. Read the full text of the bill.
Rep. John Culberson, R-Texas, is the chief sponsor of the bill, HR 1559, which is being called Armed Forces Tax Relief Act.
Culberson said the the Armed Forces Tax Relief Act, if approved, will allow soldiers to concentrate on defending America, rather than worrying about paying their taxes. U.S. soldiers are fighting hard to protect our freedoms, and they should be protected from the long arm of the IRS.
This bill was introduced March 19th, and is still in the first step of the legislation process where it is likely to undergo significant changes before it moves on. It is currently in the House Way and Means Committee.
Several similar bills have been introduced in the past, but did not make it far in the legislative process. The biggest concern is the loss of tax revenue and the increases or cuts the government would have to make elsewhere.
No word on whether it will affect Guard or Reserve pay, unless the unit/individual is activated.
If you support this bill (or if you do not), be sure to write to your Congressional Representatives and let them know how you feel.