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Text of the Disabled Veterans Tax Termination Act

This bill was introduced on January 19, 2011, in a previous session of Congress, but was not enacted. The text of the bill below is as of Jan 19, 2011 (Introduced).

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I

112th CONGRESS

1st Session

H. R. 333

IN THE HOUSE OF REPRESENTATIVES

January 19, 2011

(for himself, Mr. Ross of Arkansas, Ms. Berkley, Mr. Loebsack, Mr. Reyes, Mr. Bartlett, Mr. McGovern, Mr. Connolly of Virginia, Ms. Brown of Florida, Mr. Westmoreland, Ms. Castor of Florida, Mr. Braley of Iowa, Mr. Brady of Pennsylvania, Mr. Schiff, Mr. Holden, Mr. Holt, Mr. David Scott of Georgia, Mr. Filner, Mr. Donnelly of Indiana, Mr. McIntyre, Mr. Tierney, Mr. Walz of Minnesota, Mr. DeFazio, Ms. Bordallo, Mr. Boswell, Mr. Courtney, Mrs. Blackburn, Mr. Bachus, Mr. Critz, Mr. Moran, Ms. Slaughter, Mr. Michaud, Mr. Wolf, Mr. Wu, Mr. Kissell, Mr. Garamendi, Mr. Boren, Ms. Tsongas, Mr. Price of North Carolina, Mr. Johnson of Georgia, Mrs. Maloney, Mr. Yarmuth, Mr. Grijalva, Mr. Frank of Massachusetts, Mr. Shuler, Mrs. Davis of California, Mr. Carnahan, Ms. Foxx, Mr. Wittman, Mr. Rahall, Ms. Norton, Mr. Peterson, Mr. Kildee, Mr. Meeks, Mr. Rogers of Alabama, Mr. Al Green of Texas, Mr. Alexander, Mr. Kucinich, Ms. Kaptur, Mr. Engel, Mr. Gutierrez, Ms. Loretta Sanchez of California, Mr. Berman, Ms. Pingree of Maine, Mr. Long, Mr. Higgins, Mr. Barrow, Mr. Shuster, Ms. Sutton, Mr. Cicilline, Mr. Peters, Mr. Markey, and Mr. Butterfield) introduced the following bill; which was referred to the Committee on Armed Services, and in addition to the Committee on Veterans’ Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To amend title 10, United States Code, to permit retired members of the Armed Forces who have a service-connected disability rated less than 50 percent to receive concurrent payment of both retired pay and veterans’ disability compensation, to eliminate the phase-in period for concurrent receipt, to extend eligibility for concurrent receipt to chapter 61 disability retirees with less than 20 years of service, and for other purposes.

1.

Short title

This Act may be cited as the Disabled Veterans Tax Termination Act.

2.

Concurrent receipt of both retired pay and veterans’ disability compensation for military retirees with compensable service-connected disabilities

(a)

Inclusion of Retirees With Service-Connected Disabilities Rated Less Than 50 Percent

Subsection (a) of section 1414 of title 10, United States Code, is amended—

(1)

by striking Compensation in the subsection heading and all that follows through Subject and inserting Compensation.—Subject;

(2)

by striking qualifying service-connected disability and inserting service-connected disability; and

(3)

by striking paragraph (2).

(b)

Repeal of Phase-In of Concurrent Receipt of Retired Pay and Veterans’ Disability Compensation

Such section is further amended—

(1)

in subsection (a), as amended by subsection (a) of this section, by striking the final sentence;

(2)

by striking subsection (c) and redesignating subsections (d) and (e) as subsections (c) and (d), respectively; and

(3)

in subsection (d), as so redesignated, by striking paragraphs (3) and (4).

(c)

Inclusion of disability retirees with less than 20 years of service

Subsection (b) of such section is amended—

(1)

in paragraph (1), by striking member retired and inserting qualified retiree who is retired; and

(2)

by striking paragraph (2) and inserting the following new paragraph:

(2)

Disability retirees with less than 20 years of service

The retired pay of a qualified retiree who is retired under chapter 61 of this title with fewer than 20 years of creditable service is subject to reduction under sections 5304 and 5305 of title 38, but only by the amount (if any) by which the amount of the member’s retired pay under such chapter exceeds the amount equal to 2½ percent of the member’s years of creditable service multiplied by the member’s retired pay base under section 1406(b)(1) or 1407 of this title, whichever is applicable to the member.

.

(d)

Clerical Amendments

(1)

Section heading

The heading for such section is amended to read as follows:

1414.

Members eligible for retired pay who are also eligible for veterans’ disability compensation: concurrent payment of retired pay and disability compensation

.

(2)

Table of sections

The item relating to such section in the table of sections at the beginning of chapter 71 of such title is amended to read as follows:

1414. Members eligible for retired pay who are also eligible for veterans’ disability compensation: concurrent payment of retired pay and disability compensation.

.

(e)

Conforming amendment

Section 1413a(f) of such title is amended by striking Subsection (d) and inserting Subsection (c).

(f)

Effective Date

The amendments made by this section shall take effect on the first day of the first month beginning after the date of the enactment of this Act and shall apply to payments for months beginning on or after that date.

3.

Combat-related special compensation technical corrections regarding amount of monthly payments for chapter 61 disability retirees

(a)

Technical corrections

Section 1413a(b)(3) of title 10, United States Code, is amended—

(1)

in subparagraph (A), by striking shall be reduced and all that follows through exceeds and inserting may not, when combined with the amount of retired pay payable to the retiree after any reduction under sections 5304 and 5305 of title 38, cause the total of such combined payment to exceed; and

(2)

in subparagraph (B), by striking shall be reduced and all that follows through exceeds and inserting may not, when combined with the amount of retired pay payable to the retiree after any reduction under sections 5304 and 5305 of title 38, cause the total of such combined payment to exceed.

(b)

Effective Date

The amendments made by this section shall take effect on the first day of the first month beginning after the date of the enactment of this Act and shall apply to payments for months beginning on or after that date.