EXCLUSIVE: An Army veteran and House Foreign Affairs member on Thursday introduced a bill to eliminate taxes for all U.S. service members deployed overseas.
Rep. Warren Davidson’s, R-Ohio, bill, the BRAVE Act, would amend the IRS code to expand that exemption to include not just designated combat zones, but all non-permanently deployed service members operating abroad. Currently, those deployed to combat zones do not pay taxes on their salary.
“When our soldiers deploy for combat, they don’t pay taxes. When they deploy around the world to promote peace and deter war, they pay taxes. The Brave Act makes it clear: reward both of these deployments—respect our warriors,” Davidson said.
Combat zones where service members’ pay is tax-exempt are decided on an ad hoc basis by executive order. Currently, roughly a dozen countries and regions qualify as such, including Iraq, Afghanistan, Jordan, Somali and the Sinai.
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However, U.S. service members are deployed to roughly 175 countries. Service members deployed to places like Chad or the Indo-Pacific pay full taxes.
“The ‘Brave Act’ ensures that those serving in foreign deployments receive the full tax relief they deserve, maintaining fairness for all service members,” Davidson continued.
U.S. forces have struggled with recruitment numbers for years, in part due to concerns that service member pay does not keep pace with inflation or with the private sector.
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The House-passed National Defense Authorization Act included a 4.5% increase for all service members and a 15% boost for junior enlisted troops. That bill must now be negotiated with the Senate before final passage.
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In 2023, recruiting shortfalls left the Army, Navy and Air Force 41,000 enlistees short of their recruiting goal. The Marines and Space Force met their recruiting targets.
The Army reportedly finished the 2023 fiscal year with 452,000 active-duty soldiers, the smallest the force has been since before World War II.