Congresswoman Susan Davis Supports Disabled Veterans Tax Elimination Act

Press Release

Congresswoman Susan Davis (CA-53) added her name as a cosponsor to H.R. 333, the Disabled Veterans Tax Elimination Act. This bipartisan bill would permit retired members of the armed forces with a service-connected disability rating of less than 50 percent to receive payment of both retirement pay and veterans' disability compensation, also known as concurrent receipt.

The bill would also extend eligibility for concurrent receipt to those medically retired from military service with a 30 percent or greater disability rate, known as a Chapter 61 retiree.

"Payments for long-standing service and payments to compensate a veteran for wounds or disability are not related and should not cancel each other out," said Davis. "Many veterans, who gave years of service to their country, are shocked to learn that their retirement pay will be reduced in connection to their disability. This bill sends the message that we value the sacrifice they made on our behalf."

Davis has been a strong advocate in the House for ending the policy of reducing a veteran's retirement pay dollar-for-dollar by the amount of their VA disability benefit.

Concurrent receipt began to be phased in over 10 years in 2004 for veterans with at least a 50 percent disability rating. In 2005, Congress authorized immediate concurrent receipt for those with a disability rating of 100 percent.

H.R. 333 would eliminate the phase in and complete concurrent receipt for all eligible veterans. This would impact approximately 160,000 retirees.

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