This week, the Gold Star Family Tax Relief Act, authored by Congresswoman Elaine Luria (VA-02), will fix a consequence of the 2017 Tax Cuts and Jobs Act that is causing Gold Star Families to see drastic tax increases.
"As a Navy veteran and member of a military family, I am proud to join my colleagues in supporting this bipartisan effort to correct this injustice in our tax code towards our Gold Star Families," said Congressman Gilbert R. Cisneros, Jr. (CA-39). "Gold Star Families deserve our steadfast support and deepest gratitude and Congress should come together and act swiftly on this legislation."
"As a proud Navy veteran, it is an honor to be leading the charge to help our Gold Star Families," said Congresswoman Luria (VA-02). "I am humbled by the outpouring of bipartisan support for this bill, and our momentum shows exactly how necessary it is for heroic families who have given the ultimate sacrifice."
The bill was formally endorsed by the For Country Caucus, of which Rep. Cisneros is a member, a bipartisan group of veterans in the House of Representatives who are committed to working to support their fellow veterans and military families.
Rep. Cisneros is a 10-year Navy Veteran and a member of the House Veterans Affairs Committee and the House Armed Services Committee.
Background:
The Gold Star Family Tax Relief Act will fix a consequence of the 2017 Tax Cuts and Jobs Act that is causing Gold Star Families to see drastic tax increases.
Relatives of fallen service members receive two forms of compensation to help them cope in the aftermath of their loss. In order to ensure that the family receives all of the benefits they have earned, spouses of the fallen sometimes sign over one of the benefits to their children.
Because the new tax law brought changes to how children's assets are taxed, Gold Star Families who formerly were obligated to pay 12 to 15 percent in taxes on such income saw their tax rate jump to 37 percent, according to the Tragedy Assistance Program for Survivors.
The Gold Star Family Tax Relief Act would classify such survivor benefits as earned income, significantly reducing the tax burden.