Why are our disabled veterans penalized by our government for serving our country?

Question

http://oversight.house.gov/investigations.asp?id=114
Disabled Veterans Tax

Under current law, veterans with 20 years of military service receive retirement benefits from the Defense Department and those with service-related disabilities receive disability compensation from Veterans Affairs. If a veteran has 20 years of service and a disability, however, the veteran’s retirement benefit is reduced by the amount received in disability compensation. This reduction in benefits is known as the “Disabled Veterans Tax.”

According to the Defense Department, over half a million veterans lose an estimated $3 billion in benefits each year due to the Disabled Veterans Tax. A series of Special Investigation Division reports analyze the local impact of the Disabled Veterans Tax.
http://www.disabledveteranstax.info/

The Disabled Veterans Tax Affects over Half a Million Veterans in the United States.

There are 1.9 million veterans in the United States who receive military retirement benefits from serving in the military for at least 20 years. Of these veterans, 563,000 veterans — 30% — also receive disability benefits from the VA and are subject to the Disabled Veterans Tax.

The Disabled Veterans Tax Costs Veterans in the United States Billions of Dollars Annually.

Nationwide, the Disabled Veterans Tax costs veterans $250 million each month in lost disability benefits. This is equivalent to $3 billion annually.

On a per-veteran basis, the Disabled Veterans Tax costs each of the 560,000 impacted veterans in the United States an average of almost $5,400 annually.

The average retired veteran in the United States receives retirement benefits of approximately $17,000 annually. The Disabled Veterans Tax reduces benefits for affected veterans in the United States by an estimated 24%.

January 31, 2007
REID FIGHTS FOR DISABLED VETERANS

Washington, DC — Working to give America’s disabled veterans the full benefits they deserve, Senate Majority Leader Harry Reid today introduced The Retired Pay Restoration Act of 2007, important legislation to allow veterans eligible for both disability compensation and retirement pay to collect both at the same time—also known as “concurrent receipt.” This issue has been a top priority of Nevada’s 250,000 veterans, as well as veterans across the country.

Introducing the bill on the Senate floor, Reid said, “The Retired Pay Restoration Act of 2007 is important legislation because it ensures veterans receive what they rightfully deserve and doesn’t force them to choose between disability compensation or retirement.” Reid added, “Our state is home to the third largest veterans’ population in the nation. This is an important issue for Nevada veterans and I’m happy I can give back to the veterans that gave our country so much."

Concurrent receipt is a special tax on the very men and women who keep us safe. Few retired veterans can afford to live on their retirement pay alone. Those burdened with a severe disability face an even greater struggle, often denied any post-service working life. They receive disability compensation to pay for the pain, suffering, and lost future earnings caused by a service-connected illness or injury. No other federal retiree is forced to make forfeit their retirement—only our disabled military retirees. This is not just an error, it is a disgrace.

Of course, concurrent receipt is not a new problem—most everyone in the Senate knows about it.

This is the seventh year that I have introduced legislation to give disabled veterans the support they have earned, and I will continue fighting until we succeed in ending this unacceptable policy.

We would never abandon a soldier on the battlefield, and we should not abandon disabled veterans when they return home.

We are blessed in this country to be defended by an all-volunteer military. These patriots put their lives and safety on the line because they love this country.


It is time for this country and this Congress to repay their service and their sacrifice, which is why I am introducing the “Retired Pay Restoration Act of 2007”.

http://reid.senate.gov/newsroom/record.cfm?id=268224

I recently cosponsored legislation that would exempt members of America's armed forces from income taxes. This legislation, introduced by my colleague John Culberson, would extend the existing tax exemption for armed forces serving in combat zones to the entire active duty military. This would eliminate withholding and income tax filing for the nation's soldiers, allowing them to keep their entire paychecks.
http://www.ronpaul2008.com/articles/234/legislation-for-our-military-families-and-veterans/

Answer 1

I agree with you, it's wrong. A 20 year pension should NOT be reduced if they are entitled to disability funds!

Answer 2

Never heard of it eferred to as the disabled veterans tax before; new name for a problem or system that has been in effect for a very, very log time. Receiving both would be by government definitions dual compensation which is not legal. Strange how it works but in the long term the veterans does make out some what for the tax break on diaabled income and at the higher percentages it gets better though at the lower side it is basically nothing. The theory behind it is really not bad and does cut down on fraud within the diability side-I am retired and have watched enough here to know that yes people will try to make claims to get something for nothing-I don't think it is very common among the retireees but will pretty much guaruntee some one out there is trying something. I honestly do not think that full retirement pay plus full disability is a way to go-if the disability is something that did not effect his service and pops up years later then it is not necessarily all service related. I know of "Vietnam veterans" who are trying to get Agent Orange disability who were never anywhere near it but the press was so bad the VA over-compensated for the ignoring it by tossing any and everything in to it for any one who spent one day in Vietnam. I think a partial offset would be a good way to go but I would also be careful about the people, mostly non-retirees, I see on here always talking about PTSD and the stress and read the story and they heard a boom once in the year and never left the confines of the base; won't talk about the sailor who worried about the Iraqis suicide bombers might attack the carrier and the 12 hour days every day without a break stressing him out. it . Like many other things much of this is getting blown way out of porportion and some are using it as a way to get something for nothing; there is cases of it and not saying they are all false but the people talking about extremely high percentages (75% or more) suffering from it-most personnel in Iraq will not even hear a gunshot or IED go off and if you worry about the imagined or possibles you'd be a nervous wreck driving a car. The nightmares will fade and you will quit being nervous around fireworks or load noises-ask the Vietnam vets, Korean Conflict or WW2 vets-everyone is jumpy but it is not a disablity or PTSD in every case.

Answer 3

The reason is that Congress, many years ago, passed laws stating that a retired military member cannot draw retired pay and VA disability compensation based on the same term of service. If they are awarded a VA disability rating, their retired pay is reduced dollar-for-dollar by the amount of the VA disability pay. That is the law.

More recently, some exceptions now exist for severely disabled retired military. But for many (including myself), the offset still exists. Only Congress can change it.

(USAF Ret)

Answer 4

Romney thinks that anyone who is unable to work and pay taxes is a drain on our society but Paul Ryan says has a plan that will put an end to that problem. Isn't that what Hitler said. Someone told Romney that he also insulted Republicans who were included in that 47% so now he is saying it was only a sound bite, he misspoke and the recording was doctored by the Liberals.Bla, bla bla. It seems that the states with the highest number of welfare recipients are the red states. Mississippi is at the top of the list. Mitt said those moochers need to take responsibility and stop draining the country. Oh the irony and the agony.

Answer 5

It's actually called Concurrent Receipt. Its been an issue for a long time and Congress has finally started to address it, phasing in full compensation for those with a 50% disability rating or higher.

One problem with all these benefits, is that we could easily bankrupt ourselves with gratitude. I'm not saying that any particular benefits should be removed, jut that we need to look at the package as a whole and structure something that is both fair and affordable.

For myself, I didn't sign up for benefits.

Answer 6

Thats why Bush has passed boith Concurrent receipt and CRSC.

Both programs allow retires disabled veterans to collect both thier retirement pay and thier VA disability pay.

Both programs limit it to those who retired after 20 years and who are 100% disabled.

But they are working on expanding the programs.

My father collects both his 30 year retirement pay and 100% disability from the VA right now.

Generally congress starts out with a smaller program, then expands it later on, after they see how it works.

Contact your local DAV office to find out more information and how to support expanding both programs.

Answer 7

Well I am a 100% rated DAV with the VA (actually 130% but you can only go to 100%). I spent 18 years in, tried to do the last 2 to take me to 20 (my enlistment would have taken me to 21 years). I could not do my final 3 years. I now just receive my monthly compensation from the VA but not my retirement from the Navy. I believe the term they use is called "double-dipping".

ACC(AW/SW)
USN ret.

Answer 8

I will not speak for others however, I not only get my retirement pay I also get a disabled pay and SSI. The kids rate the chapter 35. I also have medicare now that I had to make as my primary or I would not have any at all. Sort of crazy but I guess they have a reason. I am 100% DAV.

Answer 9

They take care of them prety good once you finally get a rating. If you add all of there pay together you would relize they make alot of money. I draw almost 5000 a month with my 100% from the V.A. and S.S.D. plus all of the benifits for my kid's and spouse if i had one.It's all tax free, so i think were talen care of pretty good.

Answer 10

Because our governmet really could give a hoot about us, any way they can tax you the better off they are, come on, you get taxed even when you die. It Is About Power And Money