In passing the SECURE Act today, the House pushed through a fix first introduced by Congresswoman Elaine Luria (VA-02) that would provide urgent relief to Gold Star Families impacted by the 2017 tax law that caused America’s most heroic families to see drastic tax increases.
“I was proud to introduce the Gold Star Family Tax Relief Act to draw attention to this terrible taxation problem – and fix it,” Congresswoman Luria said. “It’s a triumph for both parties and America that the House got relief for Gold Star Families as part of the legislative package that passed today.”
Today’s development follows this week’s House passage of Congresswoman Luria’s Cost of Living Adjustment Act for America’s veterans.
Relatives of fallen service members receive two forms of compensation to help them cope in the aftermath of their loss. In order 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 brought changes to how children’s assets are taxed, many 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 House’s SECURE Act would repeal the portions of the tax law that have been problematic to Gold Star Families. This results in taxing the income at the child’s parent’s tax rate, rather than at the rate for trusts and estates, thereby significantly reducing the family’s tax burden.
Attracting 155 cosponsors and the endorsement of 20 service, veteran, and survivor organizations, Congresswoman Luria’s Gold Star Family Tax Relief Act first sought the repeal of the relevant provisions in the tax law and provided momentum for today’s result for Gold Star Families.
The SECURE Act also includes other provisions to expand opportunities for Americans to increase their retirement savings.
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