S.878 - Coast Guard Combat-Injured Tax Fairness Act (119th Congress)
Summary
S.878, the Coast Guard Combat-Injured Tax Fairness Act, aims to amend the Combat-Injured Veterans Tax Fairness Act of 2016 to include members of the Coast Guard. This inclusion applies when the Coast Guard is not operating as a service within the Department of the Navy. The bill seeks to restore improperly withheld tax amounts from severance payments to Coast Guard veterans with combat-related injuries.
Expected Effects
The bill will ensure that Coast Guard members receive the same tax benefits as other veterans regarding severance pay related to combat injuries. It clarifies the responsibilities of the Secretary of Homeland Security and the Secretary of Transportation in administering these benefits. This will likely result in some Coast Guard veterans receiving tax refunds and future severance payments being handled correctly.
Potential Benefits
- Ensures equitable tax treatment for Coast Guard veterans with combat-related injuries.
- Restores improperly withheld tax amounts, providing financial relief to affected veterans.
- Clarifies departmental responsibilities, improving administrative efficiency.
- Aligns benefits for Coast Guard members with those of other military branches.
- Provides a one-year deadline for identifying and reporting improperly withheld amounts.
Potential Disadvantages
- Potential administrative burden in identifying and processing past tax withholdings.
- Possible delays in implementation due to the need for inter-departmental coordination.
- The bill might create a need for similar amendments for other uniformed services in the future.
- There could be a slight increase in government spending due to tax refunds.
- The bill's impact is limited to a specific group (Coast Guard veterans), potentially overlooking other veteran needs.
Constitutional Alignment
The bill aligns with the constitutional principle of providing for the common defense and promoting the general welfare. While the Constitution does not explicitly address veterans' benefits, Congress has broad authority under Article I, Section 8 to provide for the military and its members. The bill does not appear to infringe upon any specific constitutional right or freedom.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).