Guest Opinion: Military families deserve some tax relief

Monday, November 12, 2007
Tucson Citizen
By Representative Gabrielle Giffords

Without prompt action by the Senate and President Bush, thousands of military families will be hit with significantly higher tax bills next year.

Because of the so-called “Soldier Tax,” more than 10,000 soldiers, sailors, airmen and Marines in combat zones stand to lose eligibility for the earned income tax credit in 2008.

Fort Huachuca Army Spc. Adam Hebert and his wife, Mijin, who have two children, will lose hundreds of dollars if the Soldier Tax is not repealed.

The well-being of our troops and their families is one of my top priorities as a member of the House Armed Services Committee and representative of a Congressional district that encompasses two major U.S. military installations.

Our military men and women are putting their lives on the line to keep us safe. Going into combat, the last thing they should have to worry about is their tax returns.

That is why I introduced the Combat Troops Tax Relief Act, HR 3808, to repeal the Soldier Tax.

On Nov. 6, by a vote of 410 to 0, the House passed this provision as part of a comprehensive tax package, honoring our soldiers’ patriotism and commitment with more than rhetoric.

The unanimous vote was an overwhelming statement of support for our men and women in uniform, who never should be penalized for their service overseas.

Now the Senate and White House must act to make Soldier Tax relief the law of the land.

In 1975, Congress enacted the Earned Income Tax Credit to provide tax relief for low- and moderate-income families. The tax credits or refunds range from $100 to more than $4,500, depending on family size and income.

Millions of Americans and more than 150,000 military personnel depend on the tax credit to make ends meet.

Unfortunately, many soldiers and Marines who face deployments next year are at grave risk of losing this benefit.

Soldiers such as Hebert are paid $20,000 to $24,000 a year. Tens of thousands of them are in combat in Iraq and Afghanistan.

Current law grants tax-free status for some military compensation, including housing allowances, certain financial incentives and pay for imminent danger and hostile fire.

However, a glitch in the tax code has effectively penalized soldiers for combat pay, reducing their eligibility for the tax credit.

This is inequitable and inconsistent with our nation’s commitment to those who fight to preserve our freedom.

The men and women who choose to serve our country in the armed forces do so with great courage and conviction, without expecting financial reward.

They accept the hardships of military service, spending long periods away from their homes and loved ones.

When going into combat, they should have confidence that they can afford to take care of their families. They deserve nothing less than our full support. They have earned it.

Click here to read the article in the Tucson Citizen