WASHINGTON D.C., DC — Congresswoman Elaine Luria introduced legislation Thursday that would repeal a tax hike forcing some Gold Star Families to pay thousands of additional dollars in taxes.
The tax hike was caused by the passed tax law in 2017, and it has families paying taxes on survivor benefits.
Spouses of the fallen sometimes sign over earned benefits to their children to ensure the family receives all the benefits. Since the new tax law brought changes to how children's assets are taxes, the families who were formerly obligated to pay 12 to 15 percent in taxes on the income saw a rate jump to 37 percent.
“Gold Star Families have already paid the ultimate price, so it broke my heart when a surviving spouse from Coastal Virginia alerted me to this injustice,” Congresswoman Luria said. “I knew I had to fight for her in Congress to fix a broken system that should be working for her and her family.”
The bill, Gold Star Family Tax Relief Act, would classify such survivor benefits as earned income, significantly reducing the tax burden.
Cosponsors for Rep. Luria's bill include
Cosponsors of Rep. Luria’s bill include Don Bacon (R-NE), Brian Higgins (D-NY), Mario Diaz-Balart (R-FL), Ron Kind (D-WI), Jaime Herrera Beutler (R-WA), Gwen Moore (D-WI), George Holding (R-NC), Stephanie Murphy (D-FL), Kenny Marchant (R-TX), Jimmy Panetta (D-CA), Ann Wagner (R-MO), Terri Sewell (D-AL), Michael Waltz (R-FL), John Yarmuth (D-KY), and Brad Wenstrup (R-OH).
View the full bill below:
