,,ii  #aahth ,,congress  #ast ,session  
,s4 #cbdc  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,november #g1  
#bjbc,mr4 ,ricketts introduced the      
following bill2 which was read twice and
 referred to the ,committee on ,finance 
,a ,,bill  ,to amend the ,internal      
,revenue ,code of #aihf to exclude all  
military retirement and related benefits
 from ,federal income tax4  #a4 ,short  
title ,this ,act may be cited as the    
,tax ,cuts for ,veterans ,act of #bjbc4 
#b4 ,exclusion of all military          
retirement and related benefits  7a7 ,in
 general ,section #abb of the ,internal 
,revenue ,code of #aihf is amended to   
read as follows3  #abb4 ,certain        
uniformed services retirement pay and   
related benefits  7a7 ,general rule ,in 
the case of a member or former member of
 the armed forces of the ,united        
,states1 gross income does not include--
 7#a7 any retired or retainer pay paid  
under title #aj or #ad1 ,united ,states 
,code1 or  7#b7 any amounts not         

described in section #ajd7;a77#d7       
received as monthly compensation1       
pension1 pay1 annuity1 or allowance paid
 under title #aj1 #ad1 #cg1 or #ch1     
,united ,states ,code1 in connection    
with a disability or combat-related     
injury or disability or death of a      
member of the armed forces4  7b7        
,certain reduced uniformed services     
retirement pay  7#a7 ,in general ,in the
 case of a member or former member of   
the uniformed services of the ,united   
,states other than a member or former   
member of the armed forces1 gross income
 does not include the amount of any     
reduction in retired or retainer pay    
pursuant to the provisions of chapter   
#gc of title #aj1 ,united ,states ,code4
  7#b7 ,special rule  7,a7 ,amount      
excluded from gross income ,in the case 
of any individual referred to in        
paragraph 7#a71 all amounts received as 
retired or retainer pay shall be        
excluded from gross income until there  
has been so excluded an amount equal to 

the consideration for the contract4 ,the
 preceding sentence shall apply only to 
the extent that the amounts received    
would1 but for such sentence1 be        
includible in gross income4  7,b7       
,consideration for the contract ,for    
purposes of subparagraph 7,a7 and       
section #gb7n71 the term consideration  
for the contract means1 in respect of   
any individual1 the sum of-- 7i7 the    
total amount of the reductions before   
,january #a1 #aiff1 in the individual's 
retired or retainer pay by reason of an 
election under chapter #gc of title #aj 
of the ,united ,states ,code1 and  7ii7 
any amounts deposited at any time by the
 individual pursuant to section #adch or
 #adeb7;d7 of such title #aj4  7c7      
,definitions ,for purposes of this      
section1 the terms armed forces and     
uniformed services have the respective  
meanings given such terms by section    
#aja of title #aj1 ,united ,states      
,code4  4  7b7 ,conforming amendments   
7#a7 ,conforming repeal  7,a7 ,in       

general ,section #adjc of title #aj1    
,united ,states ,code1 is repealed4     
7,b7 ,clerical amendment ,the table of  
sections at the beginning of chapter #ga
 of such title is amended by striking   
the item relating to section #adjc4     
7#b7 ,annuities ,subsection 7n7 of      
section #gb of the ,internal ,revenue   
,code of #aihf is amended by striking   
,subsection 7b7 and inserting ,in the   
case of any member or former member of  
the uniformed services of the ,united   
,states other than a member or former   
member of the armed forces1 subsection  
7b74  7c7 ,clerical amendment ,the item 
relating to section #abb in the table of
 sections for part ,,iii of subchapter  
,b of chapter #a of the ,internal       
,revenue ,code of #aihf is amended to   
read as follows3  ,sec4 #abb4 ,certain  
uniformed services retirement pay and   
related benefits4  4  7d7 ,effective    
date ,the amendments made by this       
section shall apply to taxable years    
beginning after the date of the         

enactment of this ,act4