Exclusive: An Army veteran and member of the House Foreign Affairs Committee introduced a bill Thursday that would eliminate the tax for all U.S. military personnel deployed overseas.
Rep. Warren Davidson's (R-Ohio) bill, the “BRAVE Act,” would amend the IRS Code to expand the exemption beyond designated combat zones to all non-permanently deployed military personnel serving overseas. Currently, military personnel deployed to combat zones do not pay taxes on their pay.
“When our soldiers deploy to combat, we don't pay taxpayers' money. When they deploy around the world to promote peace and deter war, we pay taxpayers' money. The BRAVE Act makes clear that we reward both deployments and honor our warriors,” Davidson said.
The combat zones in which military personnel's salaries are exempt from tax are determined by presidential decree from time to time. Currently, about 12 countries and regions, including Iraq, Afghanistan, Jordan, Somalia, and the Sinai Peninsula, are exempt from taxation.
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U.S. Army Special Forces Sergeant Johnny Pagan, a Manhattan native with the 1st Battalion, 69th Infantry Regiment, New York National Guard, pilots a soldier-mounted sensor-equipped unmanned aerial vehicle. (U.S. Army Photo by Master Sergeant Warren W. Wright Jr.)
However, U.S. troops are deployed to about 175 countries, and military personnel deployed to places like Chad and the Indo-Pacific region pay full taxes.
“The BRAVE Act will ensure that deployed military members receive the full tax credit they deserve and maintain fairness for all military members,” Davidson continued.
The U.S. military has struggled for years to recruit new members, in part due to concerns that military pay has not kept up with inflation and private sector standards.
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Mine detectors stand by as U.S. soldiers maneuver the Hermes robot into a cave in the eastern Afghan border town of Kikai on July 29, 2002, searching for mines, booby traps and other unexploded ordnance, as well as weapons and equipment that may be hidden by Taliban or al-Qaida fugitives. (Wally Santana/Pool/Getty Images)
The House-passed defense authorization bill includes a 4.5% pay increase for all military personnel and a 15% pay increase for junior enlisted personnel. The bill must be negotiated with the Senate before it can be passed.
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In 2023, recruiting shortfalls left the Army, Navy and Air Force 41,000 enlistees short of their recruiting goals. The Marine Corps and Space Force met their recruiting goals.
The Army reportedly finished fiscal year 2023 with 452,000 active-duty soldiers, the smallest force since before World War II.
