Senate Votes To Protect Veterans' College Benefits From Taxes

Senate stops Collester's plan to tax service members

MAVOCKE, DMG--The Senate voted on Tuesday to protect veterans' college benefits from federal taxation, striking down hopes from President Menuhaeo and the Treasury Department to gain revenue from troops who pursue higher education.

Last month, the Menuhaeo administration proposed laying a 3 per cent tax on veterans' college benefits from the federal government, effectively forcing soldiers who go to college to give up 3 per cent of their benefits to the federal government. The percentage of taxation also would have been variable, depending on the applicant's income.

But yesterday, the Senate struck down the president's idea by proposing and approving a bill of its own that prevents the federal government from collecting taxes on service members' financial aid. The bill was a strong show of bipartisanship, with three Conservative and two Nationalist sponsors. It was easily passed by a vote of 66-24.

Proponents argued that service members are entitled to complete benefits, and the government should not be taxing military members even in difficult financial times.

"These people have fought in fox holes. They've gone through hell. The least we can do for them is give them a basic education so they can go out into the world and continue their service to our country in the civilian sector," Sen. John Yannes (N-POG), a co-sponsor of the bill, said on the Senate floor.

But Sen. John Warner-Patterson (N-WIK), who said he agonized over this bill, said the government requires all citizens to pay taxes, veterans or not.

"I'll be honest with you, I agonized over how I was going to vote on this bill. I was awake all night, couldn't sleep...because I love our military and I love the men and women who serve in it," he said. "But the constitution requires all people, every person, to pay their fair share. And we can't exempt people solely because of their military service."

Conservative Sen. Nancy Lindselli of East Deschire blasted the idea of taxing college benefits for soldiers.

"These kids are returning home from Iraq and Afghanistan, some of them with their hands blown off and some of them are missing legs, and this is how we treat them? By taxing every nickel and dime out of them, as if there aren't already enough taxes on the Grassadellan people? This is ridiculous, and shame on those that think it's okay," Lindselli told the GBC Tuesday afternoon before the vote.

The Department of Tax Revenue and Currency says it recognizes the service of military members, and appreciates their commitment to the country, but "we have a job to do, and that is to collect taxes," Secretary John Rogers-Thurst told GNN News.

"We admire the service of these brave men and women, but we have to collect taxes. That's our job. And in these difficult times, we have to find different areas where we can collect revenue," Rogers-Thurst said.

The National Veterans Organization (NVO) said it was "relieved" the Senate protected veterans from over-taxation.

In a written statement, the group denounced the administration's attempt to "lay burdensome taxes on our military men and women," and criticized the idea, calling it a "slap in the face to those serving our country."

Acting Director of the Department of Veterans' Affairs, Jim Mogoshan, said the administration did not intend to offend veterans.

"The last thing we want to do is offend our veterans. They have served our country admirably, and we respect them and honor them," Mogoshan said.

Sen. Newton Jeffs (C-WIK), who chairs the Senate Military Committee, which oversees veterans' issues, said he was "appalled" at the administration's suggestion of additional taxes on veterans, but added he was pleased the Senate took action. Jeffs also said his committee will look into other issues surrounding veterans and taxes.

A spokesman for Collester said President Menuhaeo will "look some place else" for taxes, and said the president will not try to compromise with the Senate over the issue.