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NEW YORK, NY (December 1, 2017) —
Iraq and Afghanistan Veterans of America (IAVA), the leading Post-9/11
veterans organization representing more than 400,000 members, raised
concerns today that two proposals within the current tax reform bills on
Capitol Hill will hurt veterans. One proposal would remove the Work
Opportunity Tax Credit, which incentivizes employers to hire veterans.
The other proposal removes the student loan interest tax deduction,
which allows individuals to deduct interest on student loans that they
took out while pursuing their studies. These proposals, if passed, would
undoubtedly hurt veterans at a moment when our nation must be investing
in veterans and ensuring that any proposed changes to our tax code
help, not hurt, veterans. While the tax bill may be a partisan issue,
veterans employment and education should not.
Veterans Employment
The Work Opportunity
Tax Credit has been critical in decreasing veterans unemployment by
incentivizing employers to hire veterans. Partially due to this tax
credit, the unemployment rate for veterans has gone from being
shamefully high to being lower than the national average. As of October
2017, the unemployment rate for post- 9/11 veterans was 3.6%, compared
to 2.7% for all veterans and a 4.1% national average. Removing the Work
Opportunity Tax Credit could reverse this positive trend and harm
veterans seeking employment.
Veterans Education
The proposed removal of
the student loan interest tax deduction within the House bill will also
hurt veterans. While many post-9/11 veterans have used the GI Bill to
obtain a college education, it does not always cover all the expenses
that veterans incur while they pursue their education. Many have had to
take out student loans to fill in gaps in funding, and as a result have
accumulated their own fair share of student loan debt. In IAVA’s latest annual member survey 46% of respondents stated that they have taken out student loans to fill in financial gaps related to their education.
If anything, these
types of tax relief should be expanded to further benefit our nation’s
veterans. In addition to current tax policies that benefits veterans,
IAVA has long advocated for other proposals that work to empower
veterans and their families. Examples of some of these proposals,
included in IAVA’s Policy Agenda,
include: 1) Providing tax credits to patriotic employers who pay the
difference between a Reserve or National Guard member’s civilian
salaries and military wages when they are called to active duty, 2)
Allowing taxpayers to designate a portion of their income tax payment to
provide assistance to homeless veterans, and 3) Creating a tax credit
for individual veterans who, within 10 years of separation from service,
complete skills training beyond what their education benefits cover,
among other tax proposals.
IAVA asks that veterans
be given consideration in these debates, and that they be the
safeguarded from proposals that would cause them financial hardship.
If
you, or someone you know, needs help navigating the resources available
to you, our RRRP Veteran Transition Managers (VTMs) are ready to assist. For more information please reference our FAQ page.