ARMED FORCES NEWS
DISABLED VETERANS' TAX TRADEOFF PROPOSED
September 19,2003

Recent legislation created "Combat Related Special Compensation" to reimburse certain disabled military retirees for retired pay they forfeit when drawing VA disability compensation. However, under CRSC, less than five percent of today's disabled military retirees will benefit, according to a letter to the President signed by hundreds of retired flag rank and general officers. Coming on the heels of CRSC, a new plan is being worked out between administration officials and House Republican leaders that would exclude many of tomorrow's disabled retirees. Under one scenario, full concurrent receipt of retired pay and disability compensation would be phased in over a five-year period, according to sources. However, to pay for it, future disability compensation or any increase in current disabilities would go only to those whose disability is linked directly to service. This could cut the number of new claims by 40 percent and prevent increases of disability awards to those whose health deteriorates. 

Veterans Groups Denounce Veterans' Tax Tradeoff 
A plan to revise the VA disability system in order to pay for full concurrent receipt of military retired pay and VA disability pay has drawn heavy fire. For example, the Veterans of Foreign Wars called it a blatant attempt to force one group of veterans to pay for another's disabilities. The American Legion asserted it would not support the tradeoff proposal. The Disabled American Veterans Web site simply proclaimed: "Congress Declares War Against Disabled Veterans." The Military Officers Association of America said that any proposal to change the VA system must be given due legislative process rather than trying to slip major changes into law at the last minute. Although the Fleet Reserve Association called the proposal a positive development, it added that any changes in VA disability rules should be thoroughly evaluated. 

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