Bill · S. 1108· Senate(119-S-1108)
Tax Cuts for Veterans Act of 2025
- Introduced
- 3/25/2025
- Last activity
- 3/25/2025 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Pete Ricketts
- Cosponsors
- - 0 - 2
- Introduced
- In Committee
What this bill would do
The ``Tax Cuts for Veterans Act of 2025'' aims to amend the Internal Revenue Code of 1986. It seeks to exclude all military retirement and related benefits from Federal income tax. This includes retired or retainer pay paid under title 10 or 14, United States Code. It also covers certain monthly compensation, pensions, or allowances related to disability or combat-related injuries or deaths. Additionally, it addresses certain reduced uniformed services retirement pay. The changes would apply to taxable years beginning after the Act's enactment.
Yes· 3 of 5
Would veterans be better off under this, taking everything together?+8
The bill directly benefits veterans by excluding military retirement and disability pay from federal income tax.
Does this increase the pay, pensions or support veterans receive?+7
The bill increases the net value of retirement and disability benefits for veterans by making them tax-exempt.
Would people over 65 be better off under this?+5
The tax exclusion provides financial benefits to retirees.
The opposite
Does this reduce what the federal government owes?-2
Tax exclusions for retirement benefits may reduce federal revenue.
Who it would affect, and how
Potential Positive Impacts for People
-
Exclusion of retirement pay from gross income: This provision would ensure that members or former members of the armed forces do not have to include retired or retainer pay paid under title �10 or 14, United States Code, in their gross income. (Section 2(a)(1))
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Exclusion of disability or combat-related benefits: This would prevent certain amounts received as monthly compensation, pension, pay, annuity, or allowance related to a disability or combat-related injury or disability or death from being included in gross income. (Section 2(a)(2))
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Exclusion of certain reduced uniformed services retirement pay: For members of the uniformed services other than the armed forces, the amount of any reduction in retired or retainer pay pursuant to chapter 73 of title 10, United States Code, would be excluded from gross income. (Section 2(b)(1))
Potential Negative Impacts for People
- No specific negative impacts are explicitly stated in the provided text.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Veterans+8Good For People With Disabilities+5Good For Retirees+5Good For Seniors+5
- National Security And Foreign Policy
- Improves Veterans Benefits+7
- Economy And Finance
- Reduces National Debt-2
- 3/26/2025
- 1 Cosponsor added.
- 3/25/2025
- Read twice and referred to the Committee on Finance.
- 1 Cosponsor added.
- Introduced in Senate
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Ruben GallegoDemocrat · Arizona
Jacky RosenDemocrat · Nevada