[Congressional Record Volume 148, Number 57 (Wednesday, May 8, 2002)]
[House]
[Pages H2169-H2170]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              STOP TAXING MILITARY STUDENT LOAN REPAYMENTS

  (Mr. GARY G. MILLER of California asked and was given permission to 
address the House for 1 minute and to revise and extend his remarks.)
  Mr. GARY G. MILLER of California. Mr. Speaker, our military uses 
students loan repayment to recruit for shortages in critical military 
occupational specialties such as the Medical Corps. If you are on 
active duty, tuition assistance is not taxed as income. If you have 
been honorably discharged and received education assistance through the 
GI bill, it is not taxed as income. However, if the military needs to 
recruit an individual for an occupation specialty that is needed, the 
student loan repayment is taxed as income.
  For example, if the military pay is $24,000 per year and he or she 
receives $20,000 that year to pay a student loan, they are taxed at an 
income level of $44,000 and the tax payment has to come out of a 
$24,000 salary.

[[Page H2170]]

  This is wrong. Support H.R. 4555 to correct this.

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