|
CONGRESS PASSES TAX RELIEF FOR MILITARY FAMILIES
Congress moved on May 22 to ease the economic hardships of military families by passing a $2 billion package of tax breaks.
The Senate, by voice vote, approved the legislation that the House passed just two days before on a 403-0 vote. It now goes to President Bush for his signature.
The legislation, supported by major service organizations, allows active-duty reservists to make penalty-free withdrawals from retirement plans and provides a tax credit for small business employers who make up the difference of wages lost to employees called to active duty.
It makes thousands of veterans eligible for low interest homeowner loans and makes permanent the ability to include combat pay as earned income for purposes of the Earned Income Tax Credit.
The measure also clarifies that those on active duty who file a joint tax return will be eligible for the economic stimulus rebate payment even if the spouse does not have a Social Security number.
Congress timed action on the Heroes Earnings Assistance and Relief Tax Act, or HEART Act, to coincide with the approach of Memorial Day.
The bill is paid for by closing a loophole where federal contractors set up sham companies overseas to avoid paying Social Security and Medicare taxes.
|
|