Senate BAH proposal is 'misguided,' analyst says

This is how the housing allowance is paid overseas (OHA) and it is horrible. Invariably, the Senate will put some type of "cap" per rank on the allowance and landlords will raise their rents to match the clientele they prefer, this leaving PVT Snuffy no option to move even further from base into the sticks to find affordable housing. Can you guess the 2nd and 3rd order effects of that? (Missed formations, more time away from family, etc...) Leave BAH alone, it ain't perfect but it's not what needs fixing!

“Congress has used the housing allowance to increase cash compensation for the military, and it’s a smart way to do that because it doesn’t incur additional liability for retirement pensions.”

I've always thought this was interesting. When you're AD, BAH being a "benefit" is great, because it isn't taxed, and it keeps you in a lower tax bracket. When you retire, suddenly a huge chunk of your old income isn't considered "pay," so it's not part of your percentage calculation.

This idea seems like it would be very hard to implement since it would require individual commands to verify lease agreements, utility bills, etc... I can see people finding ways to take advantage of this.

TSgt Steve Waide you mean everyone doesn't live in the barracks? And there is the Exchange.