Senate Passes Wicker Provision to Provide Tax Relief to Soldiers

March 13, 2008

WASHINGTON – As part of an amendment to the FY 2009 budget resolution, the U.S. Senate today passed a provision offered by Senator Roger Wicker (R-Miss.) that will provide tax relief for soldiers serving our country in combat. 

Wicker’s provision extends an expired tax provision that allows members of our armed services who collect combat pay also to collect the Earned Income Tax Credit (EITC).  Under current law, beginning next year soldiers will not be able to count their non-taxable combat pay when figuring their eligibility for the EITC.  The EITC is a federal income tax credit that puts cash back in the hands of low- to moderate-income workers and their families.   

“The men and women who serve our country in Iraq and Afghanistan are the last people who should be punished by our tax code,” Sen. Wicker said.  “This ensures our troops receive the tax fairness they deserve while putting money back in their pockets.”

During Senate debate on the budget today, Wicker’s provision was approved as part of a larger amendment to provide tax relief to middle-class families and small businesses.

While a member of the House, Wicker, an Air Force veteran, served as the ranking Republican on the appropriations subcommittee that oversees veterans spending.  In this role, he helped shepherd the largest veterans spending increase in history through Congress. 

Wicker is a member of the Veterans Affairs Committee, the Armed Services Committee, and the Commerce, Science and Transportation Committee.