Bill Overview
Title: Coast Guard Combat-Injured Tax Fairness Act
Description: This bill extends a tax benefit related to combat-related severance pay to veterans of the Coast Guard.
Sponsors: Sen. Cassidy, Bill [R-LA]
Target Audience
Population: Coast Guard veterans who received combat-related severance pay
Estimated Size: 2000
- The bill affects military veterans who have received combat-related severance pay.
- Currently, certain tax benefits are extended to veterans of the armed services who have been injured in combat, but this bill specifically includes Coast Guard veterans.
- The number of Coast Guard veterans is typically smaller compared to other branches of the armed forces, due to the size of the service.
Reasoning
- The policy specifically targets Coast Guard veterans who received combat-related severance pay, a small subset of the veteran population.
- Considering the typical size of Coast Guard personnel, the number of affected individuals is limited, aligning with the estimated 2,000 eligible veterans.
- For those impacted, the policy is likely beneficial, improving financial situations by reducing the tax burden on their severance pay.
- The budget constraints of $30 million over 10 years suggest that each eligible veteran might gain significant tax-related relief, but not all Coast Guard personnel are eligible.
- The general population does not experience direct impact, thus not affecting their well-being related to this policy.
Simulated Interviews
Coast Guard veteran (Miami, FL)
Age: 32 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- I think it's a fair move to offer tax relief for the severance pay I received. It feels like a more complete recognition of the challenges faced during service.
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 | 8 | 6 |
| Year 20 | 7 | 5 |
Coast Guard veteran (San Diego, CA)
Age: 46 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 2/20
Statement of Opinion:
- It's about time they included us in this tax exemption. It's a relief to see acknowledgment of our service.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 4 |
Coast Guard administrative officer (New Orleans, LA)
Age: 40 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 10/20
Statement of Opinion:
- I think this policy is necessary and just for our veterans who endured combat. It may not affect me directly, but it's a crucial step for fairness.
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 |
Retired Coast Guard officer (Portland, OR)
Age: 55 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 9/20
Statement of Opinion:
- This policy doesn't change anything for me, but it's a positive change for younger generations who faced combat situations.
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 |
Coast Guard veteran (Baltimore, MD)
Age: 29 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 2/20
Statement of Opinion:
- Getting tax relief on my severance would significantly help me financially, especially with ongoing medical expenses.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 6 |
| Year 2 | 9 | 6 |
| Year 3 | 9 | 6 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 6 |
| Year 20 | 8 | 5 |
IT specialist (Houston, TX)
Age: 38 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 5/20
Statement of Opinion:
- It's good to see support for those who really need it post-service, though personally it's not changing my situation.
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 |
Coast Guard veteran (Boston, MA)
Age: 34 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- The policy recognizes and supports the struggles from combat service, directly benefiting my situation.
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 | 7 | 5 |
| Year 10 | 6 | 4 |
| Year 20 | 6 | 4 |
Logistics manager (Chicago, IL)
Age: 42 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 7/20
Statement of Opinion:
- I support my fellow Coast Guardsmen who receive this benefit; it's a step in the right direction.
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 |
Coast Guard veteran (Seattle, WA)
Age: 50 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 0.0 years
Commonness: 4/20
Statement of Opinion:
- It won't affect my finances since I receive disability, but I'm glad others will benefit who were left out before.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Financial advisor (Jacksonville, FL)
Age: 29 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 8/20
Statement of Opinion:
- This policy is a necessary adjustment, acknowledging the specifics of Coast Guard service in combat situations.
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 |
Cost Estimates
Year 1: $3000000 (Low: $2000000, High: $5000000)
Year 2: $3000000 (Low: $2000000, High: $5000000)
Year 3: $3000000 (Low: $2000000, High: $5000000)
Year 5: $3000000 (Low: $2000000, High: $5000000)
Year 10: $3000000 (Low: $2000000, High: $5000000)
Year 100: $3000000 (Low: $2000000, High: $5000000)
Key Considerations
- This policy provides fairness in tax treatment across all branches of service.
- The impact on federal tax revenue is limited due to the small number of beneficiaries.
- Implementation is straightforward, building on existing systems for exempting certain types of compensation.