Tax Worthy! I Don't Say That Often

[Annie]

http://www.nypost.com/postopinion/opedcolumnists/42609.htm

SUPPORTING GIS — AT HOME
By MATT DANIELS

ALMOST forgotten in the War on Terror are thousands of American military reservist families whose incomes plummet to "pay grade" when the family breadwinner is called-up for active duty.

These brave families, who already sacrifice by sending a loved one off into harms way, are also asked to shoulder this extra burden each day. Some families could even face personal bankruptcy.

Last May, the Defense Department surveyed more than 19,000 National Guard and Reserve members who'd been called up to active duty; 55 percent reported a loss of income, with 15 percent reporting a loss of $30,000 or more.

Federal law obliges employers to re-employ servicemembers upon their return from active duty, but it doesn't the force the boss to make up the difference in pay.

Many employers have voluntarily stepped up to the plate. The Adolph Coors Co. offers up to a year of differential pay and benefits. And Wal-Mart provides continued benefits to its activated employees, aid to their families and differential pay. (The retail giant has even partnered with the VFW's Operation Uplink to offer free phone cards to troops.)

But not every company has the economic means to be so altruistic, especially small businesses that employ less than 50 workers.

So here is where Republicans and Democrats can work together: Congress ought to encourage these acts of patriotism on the home front.

That's the purpose of several sections of the Standing With Our Troops Act of 2005 (S. 11).

"It's the shame of the service. Reservists give up everything normal in their lives to fly halfway around the world to fight terror, only to take a huge hit in income back home," says Sen. Charles Schumer, who has co-sponsored that bill. "If a reservist bought a house at his old salary and his wife and kids are still living in it, no bank is going to cut his mortgage 60 percent just because that's the salary hit he's taking to do his duty."

The act, the very first bill introduced by Senate Democrats this year, gives federal tax credits to small businesses that continue to pay National Guard and Reserve employees who have been called up for active duty. The credit is worth half of what the employers pay toward making up for the income gap, up to $15,000.

The measure also allows servicemembers called to active duty the ability to make withdrawals from retirement plans without the usual 10 percent tax penalty. This gives families an added sense of security — a nest egg of sorts — in the event of a family emergency or dire financial instability.

The Standing With Our Troops Act applies to federal employees, too, providing for no reduction in pay while answering their nation's call to duty in the military.

Of course, in the event of the ultimate sacrifice — the death of a loved one — any amount of money is a pittance. But our nation must honor and take care of its own, providing for the survivors of fallen military personnel in their time of greatest financial need. The bill would make dramatic improvements in this area, raising the sum from $12,000 to $100,000 — and eliminating the macabre federal income tax that now applies to this benefit.

In an era when members of Congress can barely agree upon the time of day, supporting those who've answered our nation's call to duty is a family value both parties can embrace.