Taxes/Social Security Committee Goals
Legislative Goals for 2019
Improve the military Thrift Savings Plan (TSP) for members of the National Guard & Reserves
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
Expand and Ensure Reauthorization of the Workforce Opportunity Tax Credit for Employers
Authorize Tax Deductions for Premiums Paid on Health Insurance
Authorize Tax Deductions for Long Term Care (LTC) Premiums
Improve Above-The-Line Deductions for Overnight Travel Expenses of Guard and Reserve Members
Enhance and expand uniformed services tax information support system
Social Security
Oppose the adoption of a Chained Consumer Price Index (CCPI) for Calculating COLA
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 demobilized 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.
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
- 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.