Wednesday, October 06, 2004
"Here's another bit of class-warfare demagoguery from Edwards:
The country needs to know that under what they have put in place and want to put in place, a millionaire sitting by their [sic] swimming pool, collecting their statements to see how much money they're making, make their money from dividends, pays a lower tax rate than the men and women who are receiving paychecks for serving on the ground in Iraq.
Wrong, according to the Internal Revenue Service Web site:
If you serve in a combat zone as an enlisted person or as a warrant officer (including commissioned warrant officers) for any part of a month, all your military pay received for military service that month is excluded from gross income. For commissioned officers, the monthly exclusion is capped at the highest enlisted pay, plus any hostile fire or imminent danger pay received.
This page notes that Iraq and neighboring countries have been considered a combat zone since Jan. 17, 1991. Also eligible for the combat exemption are those serving in Afghanistan and parts of the former Yugoslavia and vicinity."