Hudson pushes tax break for special operations troops

If a North Carolina congressman gets his way, the families of some special operations troops will have a tax break in their future.

Rep. Richard Hudson, a Republican whose district includes Fort Bragg, is pushing a measure to expand the Combat Zone Tax Exclusion, which protects the income of some deployed troops from federal income tax.

Hudson introduced a bill, the Special Operations Forces Tax Cut Act, earlier this year that would “modernize the law to reflect the current realities of warfare and ensure fairness for service members who serve in combat situations.”

The congressman also introduced a separate measure that has since been adopted as an amendment to the House’s version of the massive defense spending bill, the National Defense Authorization Act.

The Senate approved its version of the NDAA earlier this month, and officials from both congressional bodies are expected to meet in the coming weeks to work on a compromise bill.

If included in the final bill, Hudson’s amendment, which has received support from Republicans and Democrats, would ask the secretary of Defense to evaluate whether troops are paid appropriately “based on the realities of today’s warfare.”

Meanwhile, Hudson’s SOF Tax Cut Act has attracted cosponsors from seven states.

If approved, the legislation would provide tax relief to troops deployed as part of certain missions.

Specifically, it would apply to troops deployed under authorities spelled out in U.S. Code Title 10, Section 127(e) of Chapter 3, which describes the support special operations forces can provide to allies combating terrorism.

“America’s military conducts global operations that don’t easily fit into one nation or geographic region,” Hudson said when he announced the legislation earlier this year. “Oftentimes, it’s our special operations forces who serve in these dangerous corners of the world. These elite soldiers put their lives on the line, and they deserve the exact same tax relief as every other soldier who serves in a combat zone.”

Hudson’s bill would cover some, but not all, of Fort Bragg’s special operations forces.

The 3rd Special Forces Group has an enduring presence in north and west Africa, with about 400 soldiers deployed to more than a dozen countries on the continent on any given day.

In the past year, the group lost four soldiers who were killed during an ambush in Niger in October. And more recently, a soldier who was killed in Somalia in June.

But the majority of the unit’s forces are deployed under other mission sets, such as U.S. Code Title 10, Section 333 of Chapter 15, which describes the train and equip mission that is a staple of Special Forces.

Of the Special Forces teams deployed to Niger last year, most, including the team that was ambushed near Tongo Tongo, were deployed as part of the train and equip mission and would thus be ineligible for Hudson’s tax cut.

Hudson said he was aware that his SOF Tax Cut Act would not cover all deployed special operations troops, but said the legislation was a starting point that could eventually be expanded to those other forces.

“It’s one approach we can take,” Hudson told the Observer. “It doesn’t cover everybody that it ought to cover. This isn’t the comprehensive solution.”

Hudson said his attempts to change the way special operations forces are paid have occurred as he has developed a better understanding of the unique role that the nation’s elite forces have on the global battlefield.

The congressman said he would like to see special duty pay based on missions, not geography.

He said special operations forces, in particular, are often involved in dangerous situations, even if deployed to a country not technically at war.

“We’ve got soldiers all over the globe who are operating in pretty dangerous situations,” Hudson said. “Yet, someone doing a job that isn’t dangerous could receive tax free income.”

Soldiers have already taken notice of his efforts, with several offering praise after Hudson helped spur a policy change after the four 3rd Special Forces Group soldiers were killed in Niger.

Hudson, according to 3rd Group soldiers, quietly pushed for so-called special duty pay, such as imminent danger pay and hostile fire pay, that was available to forces in other parts of the world.

In March, the Department of Defense announced that soldiers serving in parts of Africa, including Mali, Niger and the north and far north regions of Cameroon, would be eligible for additional pay.

The soldiers are now eligible for an additional $225 a month, the same amount received by troops deployed to Iraq, Afghanistan and other countries deemed as dangerous environments by the military. The troops, and the families of the four soldiers killed in Niger, also were eligible to collect back pay under the new rules.

Hudson said the added pay and tax savings would add up to about $500 a month per family.

That’s a relatively small amount in the big picture of the nation’s budget, he said. But a potential big break for the troops and their loved ones.

“It’s a big deal for those families,” Hudson said. “It would be a huge impact on each individual family that’s involved.”