Taxes/Social Security Committee Goals

Legislative Goals for 2020

Improve the military Thrift Savings Plan (TSP) for members of the National Guard & Reserves.

Allow members of the Ready Reserve of a reserve component of the Armed Forces (who only drill for points) to make contributions on the basis of their military service to the military Thrift Savings Plan by supporting legislation to amend Section 402(g) of the Internal Revenue Code of 1986.
Raise the cap on annual Thrift Savings Plan contributions to allow members of the Guard and Reserve to max out both their private employer and military retirement plans.

Ensure that members of the Public Health Service (PHS) and National Oceanic and Atmospheric Administration (NOAA) are treated the same as members of the Armed Forces for tax purposes.

Under the new tax law, reimbursed moving expenses are deductible for members of the armed forces who have orders; members of the Uniformed Services (PHS and NOAA) who receive orders should be treated the same way

Expand and Ensure Reauthorization of the Workforce Opportunity Tax Credit for Employers.

Who hire Guard and Reserve service members
Who hire disabled veterans
Who hire military spouses of both Active and Reserve service personnel

Authorize Tax Deductions for Premiums Paid on Health Insurance.

Secure legislation allowing service members, retirees and survivors to pay on a pre-tax basis health insurance premiums and enrollment fees for TRICARE, TRICARE supplements, and DoD sponsored TRICARE dental plans
This is already permitted for Federal civil service personnel and civilians who participate in a "cafeteria plan" offered by civilian employers

Authorize Tax Deductions for Long Term Care (LTC) Premiums.

Group long term care insurance has been approved for federal employees and uniformed services members - active, reserve, and retired.
Their family members also need protection against the unforeseen cost of custodial care services that might be needed as a result of a disabling condition. LTC is a self-funded program. In order to promote enrollment in a commercial or the new government LTC insurance plan, it has been suggested that the cost of premiums be allowed as a deductible on personal federal income tax for qualified long-term care insurance plans

Improve Above-The-Line Deductions for Overnight Travel Expenses of Guard and Reserve Members.

Restoration of full tax-deductibility of non-reimbursable expenses related to military training was accomplished in the FY04 NDAA using a distance of 100 miles
All other government agencies use a 50 mile provision for travel compensation
The Internal Revenue Code Section 62(a)(2)(A) should be changed so that "the deductions allowed" for any period during which such individual is more than 50 miles away from home in connection with such services."

Enhance and expand uniformed services tax information support system.

Service members face unique and complicated tax scenarios, and navigating the IRS filing requirements can be challenging.
The Internal Revenue Service (IRS) should establish a special unit within the IRS office of Stakeholder Partnership, Education and Communication to be responsible for outreach, education, and assistance concerning the tax issues applicable to members of the uniformed services and organizations that provide tax assistance to them.

Expand the age of eligibility for ABLE accounts to accommodate for most veterans with disabilities.

ABLE accounts were established in 2016 to provide certain individuals with disabilities with tax-advantaged savings accounts to pay for disability-related expenses.
For many, ABLE accounts provide the ability to work and save money without jeopardizing access to important federal programs like SSI and Medicaid.
Under current law, ABLE accounts are only available to those who became disabled before the age of 26. DoD data reveals that the average age of an enlisted service member who retires from the military due to disability is 34.4 years old, and 39.2 years old for officers.
The ABLE Age Adjustment Act would raise the age of eligibility from 26 to 46 and help ensure that veterans can pay for health and quality of life expenses that VA may not be able to cover.

Social Security

Oppose the adoption of a Chained Consumer Price Index (CCPI) for Calculating COLA.

The adoption of a Chained CPI for calculating Cost of Living Allowances would greatly reduce the benefits of Social Security recipients and military retirees
Adoption would be punitive and could potentially place recipients in poverty

Protect and secure future Social Security benefits.

The future financial viability of Social Security is often portrayed as one which will require either disproportionate benefit reductions or disproportionate tax increases for future generations
Actions to restore the program's long-term financial viability must fairly balance the legitimate interests of both current and future beneficiaries and no group should be forced to bear disproportionate sacrifice.
Additionally, problems of fraud, waste, and abuse should be addressed before imposing financial penalties on beneficiaries.

Empower medically retired veterans who are unable to work due to their disabilities to maintain full TRICARE access and chose the healthcare coverage that fits their needs best.

Many of the most severely wounded warriors qualify both for Medicare and for TRICARE. They earn TRICARE upon medical retirement, and they qualify early for Medicare (before age 65) if they cannot work for a sustained period of time.
Although these wounded warriors earned low cost TRICARE benefits through their service, they lose the choice to remain on these low-cost plans and are required by law to purchase Medicare Part B. If they decline Part B, they lose all access to TRICARE health benefits.
Even those who return to work remain in this situation for a period of eight and a half years due to current Social Security laws.
Based on 2020 annual enrollment fees or premiums alone, the cost of carrying Medicare Part B is $1,735 versus less than $400 for TRICARE Prime.