If service members get paid from taxes, why is it that they have to pay taxes as well?

2014-05-25T18:51:55-04:00

I have a question. If someone can answer this in a way that anyone reading it can understand that would be great. The U.S. Military gets payed from taxes that hard honest working citizens pay. There is an estimated 313.9 Mil people in the U.S. and 1,138,044 members in the Military which is a total of 0.0036% of the US population. This includes members from the four major services which include the Army, Air Force, Navy and Marines. So if service members get paid from taxes, why is it that they have to pay taxes as well? In a sense it is as though they am paying a 8th of their own paycheck based on the amount they pay every month.

Response by SSG Robert Burns made May 25 at 2014 7:52 PM

2014-05-25T19:52:06-04:00

Because the source of your waged income is irrelevant to whether or not you pay taxes. Whether it makes sense or not is another question.

Response by Sgt Jennifer Mohler made Sep 5 at 2014 9:47 AM

2014-09-05T09:47:56-04:00

This bothered me to no end while I was in. It just creates red herrings in the government's budget because they are double counting money. I was payed 100% with taxes, why on earth am I taxed again? It makes no sense to me. I am glad I am not the only one to have noticed, and be bothered by this. I wish there was a way to get this noticed on the beltway.

Response by MSgt Bj Jones made Dec 10 at 2014 9:34 PM

2014-12-10T21:34:44-05:00

It's a clever way for the Government to double dip by taxing what has already been taxed. Civilians are double taxed without realizing it. I'd venture some civilians aren't aware Military pay is taxed.

Response by GySgt Wayne A. Ekblad made Apr 15 at 2015 8:09 AM

2015-04-15T08:09:38-04:00

http://www.duffelblog.com/2015/04/tax-day-platoon-sergeant-army/

Platoon Sergeant Claims 38 Soldiers On His Tax Return

In addition to his tax return, Kinchloe is filing another civil suit in an attempt to retrieve a small portion of whatever of left of his soul.

Response by Capt Richard I P. made Apr 15 at 2015 8:47 AM

2015-04-15T08:47:51-04:00

Boggles the mind doesn't it? Like taking money out of one pocket and putting it in the other. Institutional inertia.

Response by Capt Private RallyPoint Member made Apr 15 at 2015 11:38 AM

2015-04-15T11:38:00-04:00

Same question for social security. Or any other government job.

I might point out that much of the military compensation is not taxed i.e. Housing, food and clothing allowances.

Here is a heads up for you for when you collect social security. Once you make enough for SS to be taxed until you make enough to have 85% of SS taxed every dollar you make not only gets taxed, but another dollar of your SS is also taxed.

Therefore for every dollar you make you must pay a tax on 2 dollars.

Perhaps you can tell this is a pet peeve of mine.

Response by CAPT Kevin B. made Apr 8 at 2016 10:52 PM

2016-04-08T22:52:18-04:00

If a law was ever passed that made MILs tax exempt, you can count on a 20% reduction in base pay. You won't see a difference either way. BTW, they capture Medicare, SS, etc. because you'll get the benefit later. Medicare becomes your primary at 65 regardless.

Response by Guillermo Birmingham made Jan 26 at 2017 11:43 PM

2017-01-26T23:43:53-05:00

Why would you stop with the military? We have many more civilians that work directly for the government. Tax law says if one has earned income through labor...regardless of source...it's taxable. Even income not earned directly through one's labor is taxable...(Interest, Passive Income, etc)...Period...

GA Birmingham, CPA