House Republicans Vote To Increase Taxes On Military Families

The House passed a Republican-sponsored bill (H.R. 8) this afternoon that would extend all the Bush tax cuts for one year, including those on income above $250,000 — and fast-track “tax reform.” Almost all House Republicans and a 19 Democrats voted for the measure. The bill would also actually raise taxes on about 25 million Americans because it reduces some tax credits. But as the Center for American Progress Director of Fiscal Reform Seth Hanlon notes, U.S. service members and their families would be part of that group:

A corporal (E4) in the Marines with four years of service, who is married and has two children would see a tax increase of $448 under H.R. 8

A military police staff sergeant (E5) in the Air Force with eight years’ service, with a spouse and three young children at home, would see a tax increase of $1,118 under H.R. 8

A private in the U.S. Army (E1) in his first year of service, who is married with an infant child, would see a $273 tax increase under the Republican plan

“These are just three typical military families who face a tax increase from H.R. 8’s failure to extend important tax benefits for working families,” Hanlon writes. “Many families with similar incomes, military and nonmilitary, would face similar tax increases because of H.R. 8’s failure to extend the child tax credit and earned income tax credit improvements.” See the full report here for more details.