To: EANGUS Members
From: EANGUS National Office
Please share the following Roll Call: Drill Weekend Talking Points with other unit members
Taxes: Update Tax Laws and Policies to Reflect Changes in the Military
By Kevin Hollinger, EANGUS Legislative Director
As the last few years have shown, inflation and Taxes are always on the rise. In most instances, pay raises don’t meet the inflation or increased tax rates. The EANGUS Legislative Team has started working to help with these issues. Please take a look at the EANGUS Tax legislative positions.
Tax Credit for Employers
EANGUS urges Congress to establish a tax credit for employers who hire Guard and Reserve members and retain them through periods of deployments 26 U.S. Code § 38. General business credit.
Guard and Reserve service members continue to experience problems maintaining employment because of the demands for meeting the increased operational support provided to active duty. While employers have tried to support national security, it would be naïve to think they are not encountering problems during these times. Companies are absorbing the cost of replacing servicemembers with temporary employees or increasing overtime to fill the vacancy of mobilizations. Servicemembers have told EANGUS that they are seeing fewer and fewer Guard and Reserve being hired because of the cost and disruption to companies. Because tax credits aim to promote a specific behavior, EANGUS believes offering tax credits to companies will encourage them to hire and retain Guard and Reserve members.
Travel Expenses
EANGUS urges Congress to amend Title 26 USC §62(a)(2)(E) to decrease the distance for the above-the-line deduction for travel expenses.
It is time to amend the tax code to change the above-the-line deductions for Guard and Reserve members who travel more than 50 miles from their residence. Currently, the law only allows the deduction when performing military duty at locations 100 miles from their residence. This change would align the Guard and Reserve with comparable 50-mile criteria for other deductions, such as moving expenses and funeral honors. One might say that this change should have occurred ten years ago when the 2005 Defense Base Realignment and Closure Commission recommended two closures or realignment recommendations. History has shown that BRAC implementations result in fewer installations increasing the distance Guard and Reserve members must travel to perform duty.
T.S.P. Contribution Limits
EANGUS urges Congress to exempt Title 26 USC 401(k) Guard and Reserve employee and government contribution limits from the new “blended retirement” plan.
Under the new blended retirement program, some Guard and Reserve members will be forced to surrender some of their civilian retirement if they want to contribute to their military retirement because of contribution limits set by the I.R.S. When not in military service, many individuals work in civilian jobs with 401k retirement programs. For example, while members could split the $18,000 (2015) limit between the two places of employment, that would mean they would be undercutting their retirement pensions in both their civilian and military retirement plans. EANGUS met with senior leaders from the Pentagon, and they expressed that they did not intend to reduce retirement benefits for Guard and Reserve through tax law. EANGUS believes this was an unintended consequence due to being unfamiliar with Title 26.
Spouse Employment
EANGUS urges Congress to create a target group for uniformed services spouses under the Work Opportunity Tax Credits to drive down the unemployment rate while incentivizing businesses with a much-needed tax benefit. 26 U.S.C. § 51(d)(1)
Many people believe that since the Reserve and National Guard are considered a local military. The force that spouses could not have the same problem with employment as active duty spouses. However, that is not the case according to the 2017 Military One Source spouse survey, which shows a higher unemployment rate for Reserve and National Guard U.S. Army E1-E4s, minorities, and servicemembers with no college\some college. Because of reductions in military strength for the Reserve Component, we have also found that many more people are moving for promotion opportunities.
Dependent Care Flexible Spending Account
EANGUS urges Congress and the Administration to encourage the Department of Defense to offer F.S.A.s to the unformed service Reserve Component when they are performing inactive and active duty.
Unlike most active-duty families, the opportunity for Reserve Component members to use daycare on installations that offer reduced tuition is almost nonexistent. Offering an F.S.A. would relieve them of high daycare costs and is portable for use with off-installation facilities. This is a no-cost, no-share benefit that DoD could provide to both Active and Reserve families.
For further information on any of these topics, please feel free to contact Kevin Hollinger, Legislative Director EANGUS, at 202-670-1826 or email at kevin@eangus.org
EANGUS Healthcare Survey
EANGUS invites you to take a brief 30-second survey to provide your feedback on the importance of healthcare and your military service.
EANGUS Resources
The Foundation has received funding from USAA for the EANGUS We Care for America National Guard Emergency Relief Grant and Interest-Free Loan Program.
With thousands of National Guard members and their families facing financial hardships as a result of the COVID-19 pandemic and other emergencies, the United Services Automobile Association (USAA), the Enlisted Association of the National Guard of the United States (EANGUS) and the We Care for America Foundation have teamed up to help National Guard members and families in need.
Go to the EANGUS-WCFA website for the criteria to apply for WCFA Grants and Interest-Free Loans.
OPERATION VETCARE
Operation VetCare was established in 2017 by EANGUS as a program designed to assist Military Service Members, Veterans, and their families who face special issues or challenges associated with military service. This program has continued to grow over the last several years. Assistance provided through this program may vary based on the limited funds available but may assist by providing support in the form of gift cards for food, clothing, and other necessary items during a service-related crisis. Through this program, EANGUS has been able to assist hundreds of people during a time of significant need. Click the button for more information on how you can support this initiative through donations or to request assistance.
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