House Republican Tax Bill Leaves Some Military Families Behind

I want everyone to read this article and discuss....then I will tell you just how misleading of a piece it is.





The House of Representatives today is scheduled to vote on a House Republican proposal (H.R. 8) that purportedly extends all tax cuts but actually raises taxes on about 25 million families by reducing certain tax credits. The 25 million families include middle-class families and students who currently benefit from a tax credit for college expenses. Others are parents raising children on modest incomes who are helped by the child tax credit and earned income tax credit. Some, as illustrated below, are members of the U.S. military and their families.
The competing Democratic proposal, which has already passed the Senate (S. 3412 / H.R. 15), extends all income tax cuts for the 98 percent of families with incomes under $250,000 ($200,000 for singles), including these tax credits in their current forms.
Below are three illustrative examples of military families whose tax bill would rise next year under H.R. 8, the House Republican tax bill.
A corporal (E4) in the Marines with four years of service, who is married and has two children would see a tax increase of $448 under H.R. 8

In 2009, President Barack Obama signed into law improvements to the earned income tax credit—an important tax credit that boosts the earnings of low- and moderate-income workers. In 2009, 211,000 military families benefitted from the earned income tax credit.[1] One of the 2009 improvements reduced the tax credit’s so-called marriage penalty (phasing out the credit at higher income levels for families that file joint tax returns). H.R. 8 would let that provision expire, increasing the marriage penalty and thus reducing the EITC for married couples in the phaseout range.
With military basic pay of $27,660[2] (and assuming no other household income), this Marine Corporal’s family is affected by the worsened marriage penalty under H.R. 8. As a result, the family’s tax credit would be reduced by $448 under H.R. 8 compared to the current tax rules, the Senate-passed bill, and the House Democratic alternative. Here are the details:
Marine corporal (E4), four years’ service, married with two children

• Military basic pay: $27,660
  
• Earned income tax credit under current tax policy and Democratic plan: $4,326
  
• Earned income tax credit under H.R. 8: $3,878

Tax increase under H.R. 8: $448
A military police staff sergeant (E5) in the Air Force with eight years’ service, with a spouse and three young children at home, would see a tax increase of $1,118 under H.R. 8

Another provision enacted in 2009 boosted the value of the earned income tax credit for families with three or more children, reflecting the fact that these families have a higher cost of living. H.R. 8 would let this provision expire, so that families with three or more children get the same-sized tax credit as families with two children.
With basic pay of $34,723, this staff sergeant’s family would be affected by both the earned income tax credit’s worsened marriage penalty under H.R. 8 and the reduced credit for families with three or more children. In total, the family’s earned income tax credit would be reduced by $1,118 under H.R. 8. Under the Senate-passed bill and the House Democratic alternative, it would not be cut. Here are the details:
Air Force staff sergeant (E5), eight years’ service, married with three children

• Basic pay: $34,723
• Earned income tax credit under current tax policy and Democratic plan: $3,508
• Earned income tax credit under H.R. 8: $2,390

Tax increase under H.R. 8: $1,118
A private in the U.S. Army (E1) in his first year of service, who is married with an infant child, would see a $273 tax increase under the Republican plan

The child tax credit generally provides a $1,000 credit per child. But the credit is only partially “refundable” for families who do not have federal income tax liability in a given year. H.R. 8 would reduce the ability of some low-income families to claim the credit. That is because the credit’s refundability is based on the level of a family’s earnings above a certain threshold—and H.R. 8 would raise that threshold.
With basic pay of an estimated $18,196 in 2013, the Army private’s family’s income is too low to owe federal income tax because of the standard deduction and personal exemptions. Under H.R. 8, the family would only be able to claim a partial child tax credit, limited to $727. In contrast, under the Senate-passed bill and the House Democratic alternative, the family could claim the full $1,000 credit for its child. Here are the details:
U.S. Army private (E1), first year of service, married with one child

• Basic pay: $18,196
• Child tax credit under current tax policy and Democratic plan: $1,000
• Child tax credit under H.R. 8: $727

Tax increase: $273


http://www.americanprogress.org/issu...ilies_tax.html

I dont know why it came out like that, the margins all set towrds the right...but you get the point

Quote:

---

Originally Posted by Hindes204

I dont know why it came out like that, the margins all set towrds the right...but you get the point

---

Left-justified it for you. :)

Thanks! My government computer disables a lot of the features on the site, I cant see the icons for editing and I must have inadvertantly clicked on "right justify"

Nobody huh? lol

Ummm....do any of these people pay any taxes to begin with? I mean, if you don't make enough money to begin with to actually PAY taxes, how can your taxes increase if we are talking about the government giving you back more money than you paid in taxes in the first place?

I may be off here and missing something, but that's my first blush takeaway....

Even some people I know who make 3-400k a year get refunds sometimes. That doesn't mean they don;t pay taxes, it means they pay too much in taxes. Conversely, if people who don't make much money don't pay any taxes at all after all their deductions and such, how can their taxes be RAISED if all we are talking about is government credits?

Since nobody really responded, Ill just lay it out. This piece was meant to discredit the republican plan by saying they are screwing over the military. What the article forgot to mention is the extra pay we recieve that is tax free. I broke it down for the same ranks listed in the article:

Marine Corporal (E4)
Base pay - $27,660
BAH (Basic Allowance for housing) where I live - $19,152 - TAX FREE
BAS (Basic Allowance for Sustenance) $3886.44 - TAX FREE

Total Income - $50,698.44 a year....half of which is tax free


AF SSgt (E4)
Base pay - $34,723
BAH (Basic Allowance for housing) where I live - $19,260 - TAX FREE
BAS (Basic Allowance for Sustenance) $3886.44 - TAX FREE

Total Income - $57,869



Army Private (E1)
Base pay - $18,196
BAH (Basic Allowance for housing) where I live - $19,152 - TAX FREE
BAS (Basic Allowance for Sustenance) $3886.44 - TAX FREE

Total Income - $41, 234




I LOVE the military, but have always been wary of those in the military that recieve EIC, I think they make enough not to get it. They get it because half of the income is tax free...its a loophole. We in the military do ok without EIC

Yep. That's BS. I volunteer down at the local VA sometimes (and am a vet) and theirs one thing I can tell you, I have not seen soo many current benefits available to active duty and veterans in my lifetime. I've said it before and I'll say it again; say what you will about this current administration, but they are "trying" to take care of active duty and military vets at a level that I have not seen before.
But as for this H.R. 8, how could they propose such a thing with a straight face ? Let's take a few dollars out of a struggling military family, but whatever you do, don't touch the income of a six or seven figure surgeon, lawyer, or business owner... heaven forbid... they need their money ! Now if that isn't close to "pimping", I don't know what is ?!?!

Quote:

---

Originally Posted by SteelerEmpire

Yep. That's BS. I volunteer down at the local VA sometimes (and am a vet) and theirs one thing I can tell you, I have not seen soo many current benefits available to active duty and veterans in my lifetime. I've said it before and I'll say it again; say what you will about this current administration, but they are "trying" to take care of active duty and military vets at a level that I have not seen before.
But as for this H.R. 8, how could they propose such a thing with a straight face ? Let's take a few dollars out of a struggling military family, but whatever you do, don't touch the income of a six or seven figure surgeon, lawyer, or business owner... heaven forbid... they need their money ! Now if that isn't close to "pimping", I don't know what is ?!?!

---

You absolutely missed the whole point of my post. And if you think this administration is "trying to take care of the military"...you need to do some real research on the subject. I live it...I know

Quote:

---

Originally Posted by Hindes204

You absolutely missed the whole point of my post. And if you think this administration is "trying to take care of the military"...you need to do some real research on the subject. I live it...I know

---

Sorry. I took it that the HR8 bill was trying to take money from military families ? But in all truth, active duty I'm not all the way "in-detail" on. But as a vet, this admin. does lead the pack in available benefits... and I got out of the service when Reagan was still in office...

Quote:

---

Originally Posted by SteelerEmpire

Sorry. I took it that the HR8 bill was trying to take money from military families ? But in all truth, active duty I'm not all the way "in-detail" on. But as a vet, this admin. does lead the pack in available benefits... and I got out of the service when Reagan was still in office...

---

really????

http://freebeacon.com/trashing-tricare/

Quote:

---

Originally Posted by Hindes204

really????

http://freebeacon.com/trashing-tricare/

---

Yes. I've heard about that but have different information than the details of that article.

Vets returning home from Iraq can receive free dental (as well as medical) which has been normally saved for disabled vets only. Vets also can get housing at a discount, furniture, money to buy a car, and even financial assistance from the federal government (if they are having a hard enough time)... something that was not available in the past. Section 8 "manages" this but it's funded by the feds. A regular civilian waits about 3 yrs before they get their crib, vets are moved ahead of these people and only wait 2 to 6 weeks (yes, civilians are "pissed" about it too...lol). The current VA also offers "veterans court" for a list of offenses that you can get a "good deal" on that you would not get in regular court. They offer business training and grants/loans for entrepreneurship once you finish your program. Theres a long list.

Thats the pay scale those fools in DC should be on.

That's a nice try by that obviously liberal site. Evidently they didn't think anyone would be able to discredit that so easily. But of course, the lemmings will eat it up and call the Republicans "hypocrites" or whatnot.

Quote:

---

Originally Posted by X-Terminator

That's a nice try by that obviously liberal site. Evidently they didn't think anyone would be able to discredit that so easily. But of course, the lemmings will eat it up and call the Republicans "hypocrites" or whatnot.

---

That was exactly my point by posting this, with the Internet, any hack working out of their basement can post misleading articles and people believe it....ridiculous