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Thread: Stop taxing the troops

  1. i didn't realize that the USSR was back.
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    #1

    Stop taxing the troops

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    So this article is on navytimes.com. What do you think about it?
    Cash cycle from Treasury to military and back wastes time, money

    By Carey Matthews -
    Posted : March 17, 2008



    Suppose that every time you pulled a dollar bill out of your right pocket and then put it in your left pocket, you were charged a few cents for the transaction. Odds are the dollar would stay put. Well, that analogy is pretty much spot on for this time of year when service members start to pay their income taxes. We spend a lot of time and money shuffling our cash from pocket to pocket.
    You know tax season is here when the trailers, seemingly straight from the FEMA hurricane surplus sale, start clogging up the Navy and Marine exchange parking lots. These temporary offices are filled with people — and stunningly tacky paneling — to help you fill out a maze of tax forms.
    Put aside the ethical question of many of these companies issuing high-interest loans based on tax refunds and ask a more meaningful question: Does it make any sense for people serving in the military to pay taxes at all? Why does the government need to spend all this time, energy and money to recycle your paycheck back to you?
    Deep in the dark bowels of government, an elaborate choreography of financial accounting takes place. Your pay is calculated, your taxes are deducted and a check is issued. Meanwhile, in some other organ of the governmental body, the revenue on taxes is received and deposited, and a file is maintained. When that time of year rolls around, the same body issues you a W-2 form, and you start calculating your taxes.
    Whatever the government keeps will get recycled back to you in the form of your pay. All that motion and energy is for what? How many people does the government employ to manage this movement of money from your right pocket to your left pocket?
    It is likely that despite advanced computer programs and the Internet, hundreds of personnel in the IRS and the government essentially deduct money from your paycheck, then hand it back to you via the Treasury Department.
    Suppose this financial goat-rope were eliminated by Congress, exempting military personnel from paying taxes on their government salary. What would be the benefits?
    • Increased retention: Eliminating the tax requirement on military-derived income would motivate people to stay in the service. It would offer a dramatically compelling advantage over the private sector. The more people stay in, the lower the training and recruiting costs.
    The longer you stay in the service, the greater a percentage of your income you keep. Our progressive tax structure charges you more the more you make. Eliminating the tax gives an added financial incentive for people to stick around. And when tax time rolls around, wouldn’t you love to be able to say, “Taxes? Not me.”
    • Savings: If we eliminate the tax burden on the services, we won’t need an additional army to administer the tax filing and tax extraction portion of everyone’s paycheck.
    • Efficiency: Think of the millions of man-hours dedicated by the military to handling the tax requirement. If you get all those hours back, there would be a few more hours in the day for more important things.
    • Pay raise: The best way to phase this in is to make the elimination of the taxes equal to projected pay raises over the next couple of years. Phased in like this, there would be no immediate impact on the Treasury. Long-term savings hopefully could be applied to military pay as a way to compete with the private sector.
    Aircraft carriers aren’t cheap, and paying the bill for the military and all the other things that government does is a grim necessity of a civilized society. Still, a civilized society should be able to see the administrative waste that goes into taxing service members. At the end of the day, paying money to the government only to have it come back as your paycheck makes no sense at all.
    The writer, a retired aviator who flew P-3s for the Navy, now works in the aviation industry in San Diego. His e-mail address is cmatthews88-navy@yahoo.com.


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  2. Loving Life!
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    #2
    I don't agree.

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    #3
    Quote Originally Posted by parkwoodmom View Post
    I don't agree.
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  4. and still I think of you
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    #4
    I like getting our tax returns.
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    #5
    I always wondered about that. We get paid from that money, but then we give some back, and then we get it back again. I guess not everyone gets their taxes back in the military though.
    I don't think I understand enough to really say much.





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    #6
    Quote Originally Posted by ~*~Sarah*J~*~ View Post
    I like getting our tax returns.
    You would get that money throughout the year if there was no income tax on the military.......

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  7. I'm from the south and sometimes I have a big mouth
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    #7
    Some states do it so I don't know why the fed government couldnt.
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    #8
    I assume some States do it because they figure that the military members are not utilizing the programs, benefits, etc of the taxes paid into the particular states.

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  9. Account Closed
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    #9
    I don't agree with it.....
  10. and still I think of you
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    #10
    Quote Originally Posted by parkwoodmom View Post
    You would get that money throughout the year if there was no income tax on the military.......
    Yes, thank you, I know...but I like getting the lump of money.
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