H.R.715 - BNA Fairness Act (119th Congress)
Summary
H.R. 715, the BNA Fairness Act, aims to amend the Internal Revenue Code of 1986 to exclude the Basic Needs Allowance (BNA) for members of the Armed Forces from their gross income. This bill was introduced in the House of Representatives on January 23, 2025, and referred to the Committee on Ways and Means. The bill seeks to provide a tax exemption for the BNA, treating it as a qualified military benefit.
Expected Effects
If enacted, H.R. 715 would reduce the taxable income of eligible members of the Armed Forces, potentially lowering their tax burden. This could increase their disposable income. The change would apply to taxable years ending after the enactment date of the Act.
Potential Benefits
- Increased disposable income: Military members receiving the BNA would have more money available.
- Simplified tax filing: Excluding the BNA from gross income simplifies tax calculations for affected individuals.
- Fairness: Addresses potential inequities by ensuring the BNA is not taxed, aligning it with other qualified military benefits.
- Improved morale: Tax relief can boost morale among service members, especially those with financial needs.
- Recruitment and retention: May indirectly aid in attracting and retaining military personnel.
Most Benefited Areas:
Potential Disadvantages
- Reduced tax revenue: The government will collect less tax revenue from affected military members.
- Complexity: While simplifying for some, it adds a specific exemption to the tax code, potentially increasing overall complexity.
- Potential for abuse: Although unlikely, any exemption can be subject to unintended exploitation.
- Limited scope: Only benefits a specific subset of military personnel receiving the BNA.
- Administrative burden: Requires updates to tax forms and guidance.
Constitutional Alignment
This bill appears to align with the general welfare clause of the Constitution, as it aims to support members of the Armed Forces. Specifically, the bill falls under Congress's power to tax and spend for the general welfare as outlined in Article I, Section 8. The bill does not appear to infringe upon any specific constitutional rights or limitations.
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).