Policy Brief: Grateful Nation Act of 2025
Title: Grateful Nation Act of 2025
Purpose
To honor the sacrifices of United States military personnel and their families by providing lifetime federal income tax exemption for qualifying personnel and their survivors, symbolizing national gratitude for their service.
Key Provisions
- Eligibility:
- Service members who complete their first term of required service with an honorable discharge are eligible.
- Surviving spouses and dependent children of personnel killed in action or declared missing in action (MIA) are also eligible.
- Retroactive eligibility applies to personnel and survivors from January 1, 1941, onward.
- Tax Exemption:
- Exempts all forms of income from federal income tax beginning January 1, 2025, for qualified individuals.
- Administration:
- Establishes an Office of Military Tax Exemption (OMTE) within the Department of Defense to oversee enrollment, verify survivor applications, and provide annual reports to Congress on July 4th.
- Implementation:
- Effective July 4, 2025, aligning with Independence Day to symbolize national pride and gratitude.
Impact
- Economic Relief: Provides meaningful financial support to military families and veterans.
- Morale and Retention: Encourages recruitment and retention by offering a tangible, lifelong benefit.
- Patriotic Recognition: Demonstrates the nation’s commitment to honoring its service members and their families.
Call to Action
Congress is urged to adopt this legislation as a critical step toward honoring the sacrifices made by the men and women of the United States Armed Forces.