U.S. Rep. Gabrielle Giffords tonight praised repeal of the “soldier tax,” a critical flaw in the tax code that would have hit thousands of military families with higher tax bills.
“As a member of the House Armed Services Committee whose district includes two military installations, I believe it is unconscionable for our tax code to penalize our troops serving in Iraq and Afghanistan,” the Tucson lawmaker said. “That is why I introduced the Combat Troops Tax Relief Act, which permanently addresses this problem.”
Giffords’ bill passed was part of the Heroes Earnings Assistance and Relief Act, which passed the House of Representatives today in a 411 to 0 vote. The act now goes to President Bush for his signature.
The congresswoman’s bill ensures that troops maintain their eligibility for the Earned Income Tax Credit, or EITC. As many as 120,000 troops deployed overseas could be eligible for the EITC under certain circumstances. All service members serving in zones of active combat receive additional compensation during their deployments. Under current law, this additional pay has the effect of reducing or eliminating the service members’ eligibility for the EITC. Giffords’ bill ensures that troops in combat maintain their eligibility for the EITC even when they receive additional hostile fire or imminent danger pay.
The Heroes Earnings Assistance and Relief Act also includes tax relief for other public servants, such as firefighters and police officers, who put their lives on the line to make our communities safer.
“This legislation honors our combat troops and these dedicated public servants for their contribution to our freedom and security,” Giffords said.