A new bill proposed by U. S. Rep. Brian Mast (R-Fla. ) on Tuesday would render all military recruitment and retention payouts exempt from federal taxes.
In a Tuesday press release, Mast’s business confirmed that the Florida Republican introduced the Low Income on Military Bonuses Act in an effort to “exempt all recruitment and reenlistment prizes paid to people of the U. S. Armed Forces from tax”.
Tuesday’s media release explained that Mast’s No Income on Military Bonuses Act may prevent any military recruitment, reenlistment, loyalty, or other incentive prizes from being taxed by the federal government. Mast’s office explained that the legislation proposal would” significantly reduce the financial strain on military families and better reflect the challenges these men and women face while serving our nation”.
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According to Mast’s office, while U. S. military members deployed in combat zones are exempted from paying taxes on military bonuses, other military members are “taxed at their marginal tax rate” for military bonuses under current federal law. According to Military Times, some military bonuses are currently taxed at a rate of at least 20 %.
The Republican congressman’s office noted that the No Tax on Military Bonuses Act would” cover all bonuses” paid by the Secretary of the Armed Forces to U. S. military members who reenlist in the military, extend service commitments, or are commissioned as an officer.
” Military service members raise their right hands to defend our country, and in return, they deserve to keep every cent of the bonus they earn”, Mast said. ” This bill removes the unfair tax burden that has long affected military bonuses and keeps hard-earned money in the pockets of our soldiers, sailors, airmen, Marines, and guardians”.
Military Times reported that junior enlisted troops in the military recently received a 10 % increase in their base pay, while all service members received a 4.5 % pay raise at the beginning of the year.
