Bills would end income tax on military's pay and retirement

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(The Center Square) – U.S. Rep. Abe Hamadeh, R-Arizona, has introduced bills to end the federal income tax on military pay and veterans’ retirement benefits.

Hamadeh said he promised voters that he would assist U.S. service members and military retirees. The congressman said he is keeping that promise with the Service Members Tax Relief Act and the Tax Cuts for Veterans Act.

He added this will help the nation with military recruitment and retention.

“This will help us keep the very best in our uniformed services,” Hamadeh told The Center Square, answering questions by email. “Because military members face high operational demands and cost-of-living pressures that outpace the pay table, they will provide a level playing field for our service members.”

Hamadeh himself is a veteran. The former U.S. Army captain and intelligence officer is now a member of the House Armed Services and Veterans’ Affairs committees.

“As for veterans, we know that they have some of the highest rates of volunteerism in their communities,” Hamadeh said. He quoted the U.S. Department of Veterans Affairs as saying, "Veterans volunteer for significantly more hours per year and are more likely to be involved in informal helping, civic groups, and donating to non-political causes than other groups.”

Based on that, Hamadeh said these bills would allow service members to contribute to their communities without a heavy financial burden.

“So not only does it help our veterans, but it helps our local communities,” said Hamadeh.

The bills are HR 6190 and HR 6189. Both would amend the Internal Revenue Code. HR 6190 would exclude all military retirement and related benefits from the federal income tax. HR 6189 would amend the tax code to exempt certain income of active or reserve service members.

Cosponsors of HR 6190 include U.S. Reps. Mike Levin, D-California; Barry Moore, R-Alabama, and Thomas Massie, R-Kentucky. Another cosponsor is U.S. Rep. Kimberlyn King-Hinds, a Republican who represents Northern Mariana Islands, a U.S. territory in the western Pacific Ocean. 

Moore, Massie and King-Hinds are also co-sponsoring HR 6189.

U.S. Sen. Pete Ricketts, R-Nebraska, has introduced companion measures in the Senate.

“The bills have earned bipartisan support, and I expect many more members to sign-on soon,” Hamadeh told The Center Square.