FOXX PENS, PROMOTES, PASSES FIRST BILL

Monday May 23, 2005

FOR IMMEDIATE RELEASE
CONTACT: Amy Auth
202-225-2071

WASHINGTON – Today U.S. Rep. Virginia Foxx (N.C.-5) earned a major victory for our country's men and women in uniform. Her first piece of legislation, the Heroes Earned Retirement Opportunities (H.E.R.O.) Act has passed the U.S. House. It was the first policy-changing bill introduced by a freshman Member to pass.

The H.E.R.O. Act is a common sense bill that will amend the Internal Revenue Code of 1986 to allow members of the Armed Forces earning hazard pay to be eligible to make retirement account contributions. The current tax code prohibits many soldiers serving in combat zones from taking advantage of Individual Retirement Accounts.

“Hazard pay wages are not taxed – nor should they be. However, since this compensation is non-taxable, the wages are not eligible for IRA contributions. This is a serious problem that I am happy to fix,” said Rep. Foxx. “I believe that those who are responsible enough to save should be able to take full advantage of IRAs – especially since they have served their country.”

Foxx took action to amend the tax code after receiving a letter from a constituent in Forsyth County , N.C. The constituent's son, an Army soldier who spent nearly a year in Iraq , did not earn enough taxable income to take full advantage of an IRA.

“I am glad this constituent brought this problem to my attention. After contacting the IRS, I decided to do something to solve this problem,” said Rep. Foxx. “The best ideas always come from my constituents back home and that's why I spend so much time in the district. I'm pleased to be able to help this soldier and his comrades.”

The H.E.R.O. Act was well received in Washington, both in and out of Congress. Forty-seven Members co-sponsored the bill. In addition, the Military Officers Association of America and the Reserve Officers Association endorsed the legislation.

“I look forward to working with members of the Senate to see that this makes it to the President's desk and is signed into law,” said Rep. Foxx.

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