End the wounded veteran tax
That’s what veterans’ advocates call it: a penalty that takes retired pay back from service members because they were injured badly enough in combat to end their careers.
A medevac helicopter on approach in Logar province, Afghanistan, 2013. U.S. Army photo by Staff Sgt. Todd Pouliot
What the “tax” is
Military retired pay is earned by service. VA disability compensation is paid for an injury or illness caused by service. They’re two different payments for two different reasons.
When combat injuries force a service member into medical retirement before 20 years, federal law reduces their retired pay, dollar for dollar, by the VA compensation they receive. That reduction is the offset. A partial program, Combat-Related Special Compensation (CRSC), gives some of it back, but for many combat-injured retirees with under 20 years, not all of it.
Veterans who reach 20 years with a 50% or higher VA rating can generally receive both payments in full. The veterans hurt badly enough to be forced out early can’t. How the offset works
Who pays it
Combat-injured veterans medically retired before 20 years. Estimates put it at about 54,000–60,000 people.
Sources: MOAA · WWP (via House VA Committee Democrats) · Star Act Alliance
What would the money cover?
Rent. A car that works. Therapy. A daughter’s braces. Tell us what the money taken from you would pay for.
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One thing you can do today
Ask your representative and senators to pass the clean, standalone Major Richard Star Act. It takes a few minutes.
The Star Act Alliance, the coalition of major veterans organizations fighting for this bill, uses the hashtag #EndTheWoundedVeteranTax. So do we.