Setting Every Community Up For Retirement Enhancement Act Of 2019
Madam Speaker, we are all in Congress because we see room for improvement in America, especially for our servicemembers, veterans, and our military families. As a 20-year Navy veteran myself, I know it is not just the brave men and women…
Madam Speaker, we are all in Congress because we see room for improvement in America, especially for our servicemembers, veterans, and our military families. As a 20-year Navy veteran myself, I know it is not just the brave men and women who fight for America, but also the families who support them every step of the way.
When Gold Star widows from Virginia Beach contacted me about how their tax bills jumped thousands of dollars as a result of the 2000 tax law, I knew I had to do something. That is why I took action to introduce the bipartisan Gold Star Family Tax Relief Act, which fixes the unintended tax hike that many Gold Star families experienced.
A number of families across our coastal Virginia district have shared their stories about how this tax law changed their lives. One woman, the widow of a Navy SEAL killed in Afghanistan, saw the taxes on her son's benefits rise by $4,000 in 2018, another by $6,000, and another by $2,500.
What this tax bill did to Gold Star families was wrong, but I have been heartened to see so many of my colleagues join me in a bipartisan effort to right these wrongs. As of today, we have 155 cosponsors and received endorsements of 20 veterans service organizations.
Madam Speaker, with this momentum, we can fix a problem for so many heroic families and ensure security for their benefits.
I include in the Record a letter signed by 20 veterans service organizations in support of the Gold Star family tax provisions included within the SECURE Act.
May 22, 2019.
Hon. Elaine Luria,
House of Representatives,
Washington, DC.
Dear Congresswoman Luria: As leaders of the major veterans,
military, and survivor organizations, we are pleased to offer
our support for H.R. 2481, the Gold Star Family Tax Relief
Act.
Surviving spouses of service members who die in the line of
duty and military retirees who die from service-connected
wounds, illnesses, or injuries are entitled to Dependency and
Indemnity Compensation (DIC) benefits from the Department of
Veterans Affairs. Survivors who paid into the Department of
Defense Survivor Benefits Plan (SBP) have a dollar-for-dollar
offset of their SBP benefits by the amount of DIC benefits.
To avoid the SBP/DIC offset, surviving spouses often sign
over SBP benefits to their children to ensure the family
receives both earned benefits.
Due to a recent change in tax law, known as the ``Kiddie
Tax,'' Gold Star families who were formerly obligated to pay
12 to 15 percent in taxes on their earned benefits are now
being taxed up to 37 percent, leaving them thousands of
dollars in tax debt. This important bill would rightfully
repeal the Kiddie Tax and reinstate military survivor
benefits to the previous tax rate.
Thank you again for your leadership on this issue. We look
forward to working with you and your staff to pass this
important legislation immediately.
Sincerely,
Robert Wallace, Veterans of Foreign Wars of the United
States; Bonnie Carroll, Tragedy Assistance Program for
Survivors; Harriet Boyden, Gold Star Wives of America; Joseph
R. Chenelly, AMVETS; Louis Celli, The American Legion; Joyce
Wessel Raezer, National Military Famiy Association; Dana T.
Atkins, Military Officers Association of America; Carl Blake,
Paralyzed Veterans of America; Keith A. Reed, Air Force
Sergeants Association; John Cho, AMSUS, the Society of
Federal Health Professionals.
James T. Currie, Commissioned Officers Assn. of the US
Public Health Service, Inc; Norman Rosenshein, Jewish War
Veterans of the USA; Vincent Patton III, Non Commissioned
Officers Assn. of the United States of America; Randy Reid,
USCG Chief Petty Officers Assn.; Jeff J. Schloesser, Army
Aviation Association of America; Christopher Cole,
Association of the United States Navy; Carol Setteducato,
Chief Warrant Officers Association of the US Coast Guard;
Thomas ``LPM'' Howlett, Marine Corps Reserve Association;
Kenneth Greenberg, The Retired Enlisted Association; Brian
Dempsey, Wounded Warrior Project.
Madam Speaker, I urge all of my colleagues to vote for the SECURE Act and, in doing that, fix this tax problem that has impacted so many of our Gold Star families across the Commonwealth of Virginia and the country.