This week, the Army, Air Force and Marine Corps each announced an increase of reservists on active duty in support of the partial mobilization. The Navy announced a slight decrease. The net collective result is 4,194 more reservists than last week. The total number of reserve personnel currently on active duty in support of the partial mobilization for the Army National Guard and Army Reserve is 150,071; Naval Reserve, 9,494; Air National Guard and Air Force Reserve, 33,365; Marine Corps Reserve, 20,089; and the Coast Guard Reserve, 3,792. This brings the total number of reservists and National Guard members on active duty to 216,811.
There are 3,459 Iowa National Guard members and reservists currently on active duty. There may be others who live in Iowa but belong to units in neighboring states. The Iowan who just died in Iraq was a Marine reservist from the Peoria, Ill.-based 6th Engineer Support Battalion.
Under current law, workers can exclude from their taxable income up to $5,000 of employer-provided child-care expenses. A separate provision of the federal tax code excludes from income benefits provided to members of the uniformed services, but it's unclear whether child-care benefits were intended to be included in that provision. The military provides extensive child-care benefits. The tax bill passed by the Senate today would clarify that child-care benefits provided to military personnel would be excluded from income.
The bill passed today also provides that military appointments would be treated as scholarships for the purposes of educational savings accounts. This means that families would not face a tax penalty for planning ahead for secondary education in the event that a child has the opportunity to serve at one of the military academies.
The bill's cost of $1.1 billion over ten years is completely offset by an extension of Internal Revenue Service user fees on certain products, a provision authorizing the IRS to enter into agreements that provide for partial payment, and reforming the tax treatment of individuals who expatriate.
"This bill pays respect to the men and women making sacrifices and, in many cases, risking their lives to protect and defend freedom," Grassley said. "I hope the Senate and House will quickly resolve the differences in their respective bills, allowing for final passage and getting these tax measures signed into law as soon as possible. It's important to remember that the bill would be in effect for the 2003 tax year, so the military men and women serving our country now would be able to take advantage of this new tax fairness when they file their 2003 taxes next year."
Last year, in the last Congress, the Finance Committee and then the full Senate passed a very similar bill to the legislation passed today. That bill, also co-authored by Grassley, underwent changes in the House of Representatives and never received final approval before Congress adjourned for the year.