Bill Overview
Title: BNA Fairness Act
Description: t This bill excludes from gross income, for income tax purposes, the basic needs allowance of members of the Armed Forces.
Sponsors: Rep. Womack, Steve [R-AR-3]
Target Audience
Population: Members of the Armed Forces receiving the basic needs allowance
Estimated Size: 190000
- The bill pertains to the exclusion of the basic needs allowance from taxable income.
- The basic needs allowance is a benefit specifically for members of the Armed Forces.
- All members of the Armed Forces who receive the basic needs allowance would be impacted by this legislation.
Reasoning
- The population most affected by this policy are members of the Armed Forces receiving the basic needs allowance, primarily those in the lower income brackets.
- Given budget constraints, not all members might benefit to the same extent, with the greatest benefits accruing to those with larger families or financial burdens.
- It's crucial to include individuals who indirectly benefit or remain unaffected due to various socio-economic factors within the Armed Forces.
Simulated Interviews
Corporal in the Army (Texas)
Age: 28 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 12/20
Statement of Opinion:
- This policy would really help me save more for my kids' future.
- It's a relief not to have part of my BNA taxed, which was unexpected money I'd rather keep completely.
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 | 7 | 6 |
Technical Sergeant in the Air Force (California)
Age: 35 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 8/20
Statement of Opinion:
- Removing taxes from my BNA will definitely ease some financial stress.
- I wish similar considerations would be made on other allowances we receive.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 5 |
Petty Officer in the Navy (Virginia)
Age: 30 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 15/20
Statement of Opinion:
- It's good to have some extra untaxed income, but it won't make a significant impact in my situation.
- I'm glad the policy helps those with families more.
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 | 6 | 6 |
Staff Sergeant in the Marine Corps (Florida)
Age: 40 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 12.0 years
Commonness: 10/20
Statement of Opinion:
- This policy gives us room to save more as a family, especially with elderly care costs.
- Every bit helps, and not paying taxes on BNA is a start.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
Private First Class in the Army (North Carolina)
Age: 25 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 13/20
Statement of Opinion:
- I think this policy is good for my future family, less tax means more savings.
- Enlisting has already improved my wellbeing, and this adds to my financial confidence.
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 | 7 | 7 |
Chief Warrant Officer in the Army (Georgia)
Age: 45 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 5/20
Statement of Opinion:
- The policy doesn't affect me significantly as I'm on my way to retirement.
- It's beneficial for younger families though, which I appreciate seeing.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Lieutenant in the Coast Guard (Washington)
Age: 33 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 9/20
Statement of Opinion:
- I'm all for making BNA non-taxable, it's a good step towards financially supporting adoption plans.
- Policies like these make serving more rewarding.
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 | 9 | 7 |
| Year 20 | 8 | 7 |
Major in the Army Reserve (New York)
Age: 50 | Gender: male
Wellbeing Before Policy: 9
Duration of Impact: 0.0 years
Commonness: 4/20
Statement of Opinion:
- Tax relief on BNA is great, but as a reservist it's not a game-changer for me.
- I hope it aids those who rely on such allowances more.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 9 | 9 |
| Year 3 | 9 | 9 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Sergeant in the Army (Hawaii)
Age: 29 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 11/20
Statement of Opinion:
- I really rely on BNA and this policy would make a noticeable difference in our daily life.
- Tax savings will help us prepare for my partner's job after graduation.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 8 | 6 |
Senior Chief Petty Officer in the Navy (Colorado)
Age: 37 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 7/20
Statement of Opinion:
- With four kids, the BNA tax exclusion will help with school and activities.
- I fully support making this change permanent for sustained support.
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 | 9 | 5 |
Cost Estimates
Year 1: $450000000 (Low: $400000000, High: $500000000)
Year 2: $450000000 (Low: $400000000, High: $500000000)
Year 3: $450000000 (Low: $400000000, High: $500000000)
Year 5: $450000000 (Low: $400000000, High: $500000000)
Year 10: $450000000 (Low: $400000000, High: $500000000)
Year 100: $450000000 (Low: $400000000, High: $500000000)
Key Considerations
- The impact on federal tax revenues due to exclusion of income.
- Calculations dependent on the number of beneficiaries and their tax brackets.
- Potential consumer spending changes due to increased disposable income for servicemembers.