Tax problems felt by the military would be remedied in a bill passed this week by the Senate in a unanimous vote.
The Armed Forces Tax Fairness Act of 2003 sailed through the Senate on a bipartisan vote of 97 to 0.
The measure would remedy specific tax problems for personnel in the uniformed services and foreign service, including establishing a special rule for determining gains that can be excluded from the sale of a home, an above-the-line deduction for un-reimbursed travel expenses for reservists, and the exclusion of child care benefits for the military from income.
Military appointments would also be treated as scholarships for the purposes of educational savings accounts. So families would not face a tax penalty for planning ahead for secondary education in the event that a child has the opportunity to serve at one of the nation’s military academies.
