Pryor has put forward legislation to address an inequity first uncovered by the U.S. General Accounting Office showing that combat pay is excluded from taxation for soldiers in the field, but income excluded under the provision is also excluded from income when computing the federal Earned Income Tax Credit and the federal child care credit.
The result of the exclusion, Pryor said is that many serving in combat see their EITC or child credit reduced or eliminated.
Pryor introduced legislation in May to address the problem that, according to the GAO, found the amount of the tax benefit loss could be up to $4,500 for enlisted personnel and $3,200 for officers.
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