Crenshaw Cosponsors Bipartisan Bill Providing Gold Star Families With Necessary Tax Relief
WASHINGTON, DC – Congressman Dan Crenshaw cosponsored H.R. 2481, the Gold Star Family Tax Relief Act. The bill, led by fellow member of the For Country Caucus Rep. Elaine Luria, will fix an aspect of the 2017 Tax Cuts and Jobs Act that is causing Gold Star Families to see tax increases.
“Our Gold Star veterans and their families made the ultimate sacrifice for our country,” said Crenshaw. “We are indebted to these families. The least we can do is change this unintended consequence, so that their children aren’t taxed unfairly for a benefit they truly deserve.”
Relatives of fallen service members receive two forms of compensation to help them cope in the aftermath of their loss. To ensure that the family receives all of the benefits they have earned, spouses of the fallen sometimes sign over one of the benefits to their children.
Because the new tax law changed to how children’s assets are taxed, Gold Star Families who formerly were obligated to pay 12 to 15 percent in taxes on such income saw their tax rate jump to 37 percent, according to the Tragedy Assistance Program for Survivors.
The Gold Star Family Tax Relief Act would classify such survivor benefits as earned income, significantly reducing the tax burden.
The For Country Caucus endorsed this legislation.