H.R.2670 - Fortifying Income by Giving our Heroes Their Earned-Tax Relief Act of 2025; FIGHTER Act of 2025 (119th Congress)
Summary
H.R.2670, also known as the FIGHTER Act of 2025, proposes amending the Internal Revenue Code of 1986 to exclude regular compensation received by active members of the Armed Forces from income taxes. This exclusion would not apply to individuals who served as Members of Congress within the 10-year period before receiving the compensation. The bill also mandates the United States DOGE Service (Department of Government Efficiency) to implement cost-saving initiatives to offset the revenue reduction caused by this tax exemption.
Expected Effects
If enacted, H.R.2670 would reduce the tax burden on active-duty military personnel, potentially increasing their disposable income. This could improve their financial well-being and potentially boost morale. However, the reduction in federal revenue would necessitate spending cuts or other revenue-generating measures to maintain fiscal balance.
Potential Benefits
- Increased disposable income for military personnel: Eliminating income tax on regular compensation would directly increase the amount of money available to service members.
- Potential boost to morale and retention: Financial relief could improve job satisfaction and encourage service members to remain in the military.
- Economic stimulus: Increased disposable income could lead to greater spending and investment, stimulating economic activity.
- Recognition of service: The tax exemption could be seen as a tangible way to honor and support the sacrifices of military personnel.
- Simplified tax filing for military members: Removing income tax obligations on regular compensation could reduce the complexity of tax filing for service members.
Potential Disadvantages
- Reduced federal revenue: The tax exemption would decrease the amount of money collected by the government, potentially impacting funding for other programs.
- Potential for budget cuts: To offset the revenue loss, the government might need to reduce spending in other areas, potentially affecting public services.
- Complexity in implementation: Defining and administering the tax exemption could create bureaucratic challenges.
- Exclusion of former members of congress: The exclusion of those who served as members of congress could be seen as unfair or discriminatory.
- Burden on the Department of Government Efficiency (DOGE): The act tasks DOGE with finding cost-saving initiatives, which may be difficult to achieve and could lead to reduced services.
Most Disadvantaged Areas:
Constitutional Alignment
The bill aligns with the Constitution's provision for Congress to provide for the common defense and general welfare (Article I, Section 8). Providing financial relief to military personnel could be argued as supporting national defense and promoting the general welfare of those who serve. However, the bill's impact on fiscal responsibility and potential need for offsetting budget cuts could raise concerns about the overall balance of promoting the general welfare.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).