Bill Overview
Title: Savings for Servicemembers Act
Description: This bill modifies the tax deduction for the travel expenses of members of a reserve component of the Armed Forces to decrease the distance from home requirement from 100 miles to 50 miles.
Sponsors: Rep. Ryan, Tim [D-OH-13]
Target Audience
Population: Members of reserve components of the Armed Forces eligible for travel expense deductions
Estimated Size: 800000
- The bill impacts members of the reserve component of the Armed Forces, who are often required to travel significant distances for training and drills.
- According to the Department of Defense, there are hundreds of thousands of reservists across all branches of the U.S. military.
- These members typically have civilian jobs and reside in various parts of the country, making travel for mandatory duties a common requirement.
- The act specifically modifies the tax deduction criteria, impacting those living between 50 and 100 miles from their drill site.
Reasoning
- Reservists cover a broad geographical range, ensuring a diverse impact potential.
- Changing from 100 to 50 miles expansion allows more servicemembers to claim deductions, directly improving financial wellbeing.
- Budget considerations suggest the policy is designed to cover a significant portion of affected reservists, though some may not see a benefit directly or immediately.
- Most reservists work full-time civilian jobs and may have family obligations, so financial support through tax deductions can play a significant role in their perceived wellbeing.
Simulated Interviews
IT Specialist (Phoenix, AZ)
Age: 32 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 12/20
Statement of Opinion:
- This policy is a great help. I used to spend quite a bit on travel, and the tax break was just out of reach before.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 5 | 5 |
Elementary School Teacher (Dallas, TX)
Age: 45 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 8.0 years
Commonness: 10/20
Statement of Opinion:
- It's a relief. Helps me with gas and sometimes needing to stay overnight when things run late.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 6 | 6 |
Construction Worker (Columbus, OH)
Age: 29 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 15/20
Statement of Opinion:
- I've been straddling a tight budget, so any bit of tax deduction helps.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 8 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 9 | 5 |
| Year 10 | 9 | 5 |
| Year 20 | 7 | 5 |
Police Officer (Minneapolis, MN)
Age: 38 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 15/20
Statement of Opinion:
- This change is good, but it does little for those of us who have even larger travel, like 150 miles.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 5 | 5 |
Financial Analyst (New York, NY)
Age: 50 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 11/20
Statement of Opinion:
- It should help with the additional costs that come unexpectedly, like car maintenance.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 6 | 6 |
Retail Manager (Orlando, FL)
Age: 27 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 13/20
Statement of Opinion:
- This won't change much immediately as I still pay a lot in commuting costs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 4 | 4 |
Nurse (Los Angeles, CA)
Age: 41 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 8.0 years
Commonness: 9/20
Statement of Opinion:
- Helping with deductions helps my budget for better groceries and essentials.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 6 | 6 |
Public School Administrator (Portland, OR)
Age: 36 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 7.0 years
Commonness: 8/20
Statement of Opinion:
- It's about time they considered these changes. It helps me not fret over travel as much.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 6 | 6 |
Engineer (Boulder, CO)
Age: 30 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 14/20
Statement of Opinion:
- Finally, those of us just meeting the criteria can get some support too.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 9 | 5 |
| Year 20 | 8 | 5 |
Software Developer (Seattle, WA)
Age: 26 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 10/20
Statement of Opinion:
- It won't affect me now, but it's great for those who've not been able to move closer.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 6 | 6 |
Cost Estimates
Year 1: $50000000 (Low: $30000000, High: $80000000)
Year 2: $52000000 (Low: $31000000, High: $82000000)
Year 3: $54000000 (Low: $32000000, High: $84000000)
Year 5: $58000000 (Low: $34000000, High: $88000000)
Year 10: $67000000 (Low: $39000000, High: $102000000)
Year 100: $260000000 (Low: $230000000, High: $290000000)
Key Considerations
- The primary cost driver is the increased eligibility for travel deductions among reservists.
- The baseline assumption is the current distribution of reservists' residences relative to their drill sites.