Our military service members proudly raise their right hand and swear to defend our country, and in return, they deserve to keep every cent of the bonuses they earn. But unfortunately, that’s not the case. It’s about time we remove the unfair tax burden that has long affected military bonuses and let our soldiers, sailors, Airmen, Marines, and Guardians keep more of their hard-earned money.
Under current law, service members are taxed at their marginal tax rate for these bonuses, while those deployed in combat zones are exempt from tax. Today, I introduced the No Tax on Military Bonuses Act, which would exempt all enlistment and reenlistment bonuses paid to members of the U.S. Armed Forces from taxation. This would significantly reduce the financial strain military families face.
The bill would cover all bonuses paid by the Secretary of the Armed Forces to members who agree to reenlist, extend their service commitment, or accept a commission as an officer.
Service members put their lives on the line to protect us. The least we can do is make sure they keep the money they earn.
