House to Debate Tax Breaks for Troops - (Let's Hope They Come Through With It)

WASHINGTON - House Republican leaders split a military tax bill in two after lawmakers from both parties balked at combining relief for American troops going into war with new tax breaks for ranchers, tackle box makers and drug companies.

A vote on the package had been scheduled two weeks ago. It was postponed when some GOP members joined Democrats to protest

piggybacking the special interest tax breaks on a bill originally intended to show support for U.S. troops being sent to the Persian Gulf.

The new strategy sets up separate bills. One provides $835 million in tax breaks over the next decade for active duty and reserve forces. The other encompasses other miscellaneous tax changes that would cost $1 billion over a decade, with most of the tax cuts paid for by $328 billion recovered from individuals who renounce their citizenship to evade the Internal Revenue Service (news - web sites).

While Democrats accused Republicans of using a popular military bill to curry favor with special interests, the bill of miscellaneous changes also includes measures popular with members of both parties.

One would relieve families of the space shuttle Columbia astronauts from paying 2002 income taxes. Another would provide new tax incentives to pharmaceutical companies that develop drugs for rare diseases.

The military bill makes tax-free a $6,000 payment to survivors of soldiers killed in the line of duty. The benefit, doubled from $3,000 during the Gulf War (news - web sites) of 1991, helps families pay for burials or memorials.

Its single biggest provision allows reservists to recoup up to $1,500 in travel costs if they must serve more than 100 miles from home and stay overnight.

It also ensures that military personnel deployed away from home can take advantage of capital gains tax breaks if they sell their houses. Under current law, people do not have to pay tax on the first $250,000 gain — or $500,000 gain for a married couple — if they live in the home for two of the previous five years.

The other bill revokes tax-exempt status from groups declared terror organizations. It also repeals the taxes on boxes sold as fishing tackle kits, which are often identical to tax-free makeup and sewing kits, and imposes a tax on imported arrows.

Its single biggest provision allows reservists to recoup up to $1,500 in travel costs if they must serve more than 100 miles from home and stay overnight.

The legislation I've seen coming out over the past few years certainly does more financially for new immigrants, illegal immigrants, approval for illegal immigrants to recieve social security, favored trade status for China, etc. than it does for those who defend the entire system with the greatest investment of all - their lives.

Congress - get off the pot and quit giving credence to the likes of those who tried stealing our military's absentee vote in the 2000 election and could give a rat's arse about their well-being - just as long as they enjoy the benefits of their sacrifices, namely freeom and personal liberties.

"The other bill revokes tax-exempt status from groups declared terror organizations."

Rather vague. Sounds like a double edge sword to me.

As far as troops go. Give them tax free status and pay for it by reducing legislative pension plans.

First, I agree they should be treated fairly and given the same tax breaks if on active duty.

Second, As reservists they signed a contract knowing full well the potential consequences which might hinder their personal finances if called to active duty.

Third, They should be paid more too.

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