Purpose: To provide comprehensive tax relief for veterans with a disability rating of 50% or higher, particularly during periods of wartime, ensuring they are supported without the burden of federal taxes.
Section 1: Elimination of Federal Income Tax
(a) Veterans with a disability rating of 50% or higher shall be exempt from federal income tax during periods of declared wartime.
(b) This exemption shall apply to all forms of income, including wages, pensions, and other earnings.
Section 2: Elimination of Capital Gains Tax
(a) Capital gains tax shall be eliminated for veterans with a disability rating of 50% or higher during wartime.
(b) This provision applies to gains from the sale of investments, property, and other assets.
Section 3: Definition of Wartime
(a) For the purposes of this Act, “wartime” shall be defined as any period during which the United States is engaged in armed conflict or has declared a state of war.
(b) The President shall notify Congress of the commencement and conclusion of any wartime period.
Section 4: Implementation
(a) The Department of the Treasury shall implement the necessary regulations to ensure that eligible veterans are informed about their tax exemptions.
(b) A streamlined process for tax exemption claims shall be established to facilitate easy access for qualifying veterans.