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Bipartisan legislation co-sponsored by Congressman Max Rose, an Army combat veteran, that would repeal a tax hike forcing some Gold Star Families to pay thousands of additional dollars in taxes on survivor benefits passed the House of Representatives yesterday.

“As we remember all of our fallen heroes this Memorial Day weekend, it’s critical that we also honor all the loved ones left behind,” said Rose, a member of the House Committee on Veterans’ Affairs. “So when the ultimate sacrifice is paid, making sure Gold Star Families receive the care and benefits they deserve without egregious tax hikes and headaches isn’t only commonsense, it’s the right thing to do.”

The bipartisan Gold Star Family Tax Relief Act will fix a consequence of the 2017 Tax Cuts and Jobs Act that is causing Gold Star Families to see drastic tax increases. 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, 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 Rose-supported Gold Star Family Tax Relief Act would classify such survivor benefits as earned income, significantly reducing the tax burden.

Rose has made fighting for veterans and ensuring they receive the care and benefits they’ve earned a top priority. Earlier this week, the House of Representatives passed Rose’s legislation, the FIGHT Veterans Suicide Act, which is a key effort in response to recent tragedies of veterans committing suicide on VA campuses. 

Following feedback from local veterans concerned with a lack of transportation options to Department of Veterans’ Affairs (VA) appointments, Rose helped secure language in the VA funding bill to prioritize transportation assistance for veterans. Additionally, earlier this year, Rose successfully passed an amendment to the Veterans Access to Child Care Act to expand childcare coverage from the VA to apply to veterans seeking treatment for addiction.

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