H.R.2973 - Coast Guard Combat-Injured Tax Fairness Act (119th Congress)
Summary
H.R.2973, the Coast Guard Combat-Injured Tax Fairness Act, seeks to amend the Combat-Injured Veterans Tax Fairness Act of 2016. The amendment aims to include members of the Coast Guard in the tax fairness provisions, specifically when the Coast Guard is not operating as a service within the Department of the Navy. This bill ensures that Coast Guard members receive the same tax benefits as other service members who have sustained combat-related injuries.
Expected Effects
The bill will result in the restoration of improperly withheld taxes from severance payments to Coast Guard veterans with combat-related injuries. It clarifies the responsibilities of the Secretary of Homeland Security and the Secretary of Transportation in ensuring these tax benefits are applied correctly. The amendment also sets deadlines for identifying and reporting improperly withheld amounts.
Potential Benefits
- Ensures equitable tax treatment for Coast Guard veterans with combat-related injuries.
- Restores improperly withheld severance payments, providing financial relief.
- Clarifies departmental responsibilities for implementing tax fairness provisions.
- Aligns benefits for Coast Guard members with those of other military branches.
- Provides a retroactive correction for past tax inequities.
Potential Disadvantages
- Potential administrative burden for the Department of Homeland Security and the Department of Transportation in identifying and correcting past withholding errors.
- Possible delays in the restoration of funds due to the one-year deadline for identification and reporting.
- The bill may create a need for further clarification on the operational status of the Coast Guard to determine which department is responsible for tax administration.
- Could lead to similar requests from other uniformed services for specific tax considerations.
- May require additional resources for the IRS to process amended tax returns.
Constitutional Alignment
The bill aligns with the constitutional principle of equal protection under the law, as it seeks to rectify a disparity in tax treatment for Coast Guard veterans. While the Constitution does not explicitly address veterans' benefits, the power to tax and spend for the general welfare is granted to Congress under Article I, Section 8. This bill falls under that purview by ensuring fair tax treatment for a specific group of veterans.
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).