U.S. Sen. Tammy Baldwin
Press Release

U.S. Senator Tammy Baldwin’s Bipartisan Legislation to Undo Tax Hike on Gold Star Families Passes Senate

"This bipartisan legislation is a much-needed fix to the 2017 law that unfairly raised taxes on these hardworking families and I’m proud to see it pass the Senate."

By - May 24th, 2019 09:15 am

WASHINGTON, D.C. — U.S. Senator Tammy Baldwin joined her colleagues Senators Bill Cassidy, M.D. (R-LA) and Doug Jones (D-AL) to praise Senate passage of bipartisan legislation providing tax relief for children receiving benefits who have lost a parent serving in the military.

“Wisconsin’s Gold Star families have sacrificed so much for this nation and the freedoms we all cherish,” said Senator Baldwin. “This bipartisan legislation is a much-needed fix to the 2017 law that unfairly raised taxes on these hardworking families and I’m proud to see it pass the Senate.”

“This bipartisan legislation is one step closer to helping those who lost a father or mother serving in the military to protect our freedom,” said Dr. Cassidy. “The Tax Cut and Jobs Act has helped millions. I thank Democratic colleagues for joining to improve the law and ensure more Americans benefit.”

“Gold Star families have sacrificed so much for our nation, and passing this legislation to remove the exorbitant tax on surviving children’s benefits is the least we can do,” said Senator Jones. “We can never truly thank these families enough for the sacrifices that they have made, but we can do everything in our power to honor and care for them. I am proud to have the bipartisan, unanimous support of the entire Senate in passing this bill.”

The Trump tax law made a change that resulted in children who lost a parent serving in the military paying more taxes on Survivor Benefit Plan benefits, an annuity administered by the Department of Defense. Before the tax law, survivor benefits were taxed at the rate of the child’s parents, but under the tax law signed by President Trump, they are now taxed at the same rate as a trust or estate. This legislation would fix the issue by taxing the survivor benefit at the child’s individual tax rate, rather than the higher rate.

Senators Michael Bennet (D-CO), Richard Blumenthal (D-CT), Sherrod Brown (D-OH), Richard Burr (R-NC), Bob Casey (D-PA), Catherine Cortez Masto (D-NV), Mike Crapo (R-ID), John Cornyn (R-TX), Tom Cotton (R-AR), Ron Johnson (R-WI), Steve Daines (R-MT), Chuck Grassley (R-IA), Maggie Hassan (D-NH), Johnny Isakson (R-GA), Angus King (I-ME), Amy Klobuchar (D-MN), Bob Menendez (D-NJ), Patty Murray (D-WA), Gary Peters (D-MI), Pat Roberts (R-KS), Tim Scott (R-SC), Kyrsten Sinema (D-AZ), Jon Tester (D-MT), Pat Toomey (R-PA), Mark Warner (D-VA), and Ron Wyden (D-OR) all cosponsored the legislation.

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