{
  "id": "RL33230",
  "type": "CRS Report",
  "typeId": "REPORTS",
  "number": "RL33230",
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  "source": "EveryCRSReport.com, University of North Texas Libraries Government Documents Department",
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      "id": 347706,
      "date": "2008-01-10",
      "retrieved": "2016-04-07T03:50:42.638937",
      "title": "Proposed Federal Income Tax Exclusion for Civilians Serving in Combat Zones",
      "summary": "Legislative proposals have been made to extend the combat zone income tax exclusion to civilian employees who are on active service in a combat zone. Under present tax law, the designation of an area as a \u201ccombat zone\u201d confers tax benefits only to military personnel serving in the combat area. No comparable provision under present tax law provides tax relief for civilian or contract employees serving in combat. However, certain income tax exclusions exist for U.S. citizens who work overseas. As an example, the proposed combat zone exclusions in the Federal Employee Combat Zone Tax Parity Act (H.R. 1974 and S. 1166) would grant added tax relief to federal civilians who are not eligible for existing exclusions.\nIn the case of extending an exclusion to federal civilian employees or civilian contract employees serving in a \u201ccombat-type\u201d zone, the primary issues revolve around the purpose of the extension, which has not been stated by proponents. The purpose could be to provide additional compensation for certain individuals serving in combat and thus facilitate recruitment for such work. Alternatively, the purpose could be one of equity, to make civilian employee benefits equal to those of the Armed Forces.\nIf the purpose of the extension is to provide additional compensation to individuals serving in combat, than a question of efficiency arises as to whether a tax subsidy is more appropriate than a direct payment. Direct spending programs are often more successful at fulfilling policy objectives than indirect subsidies made through the tax system.\nIf the purpose of extending the combat zone exclusion to civilians is to make civilian benefits equal to those of the Armed Forces, then the distinctions between military service and civilian employment become important in the analysis of the policy. In that context, it has been observed that military personnel cannot resign when facing danger; they cannot refuse assignment; they are considered to be on duty 24 hours a day, every day; and they may be required to work until the job is done with no specific relationship to compensation. Whereas military personnel must perform those duties, civilian employees may or may not, depending on for whom they work or the contracts they have negotiated, and those contracts could include monetary and other incentives for working in combat zones not available to military personnel. Also, there are distinctions between civilian DOD employees and civilian contractors that complicate the issue of\u00a0equalization.\nThis report provides information about the tax treatment of both the earned income of members of the Armed Forces serving in combat zones and the earned income of U.S. citizens working overseas. A brief discussion of the possible expansion of income tax exclusion to government civilian employees in a combat zone and an analysis of the relevant policy issues is also included.\nThis report will be updated as warranted by legislative events.",
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      "source": "University of North Texas Libraries Government Documents Department",
      "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc811458/",
      "id": "RL33230_2007Apr23",
      "date": "2007-04-23",
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    {
      "source": "University of North Texas Libraries Government Documents Department",
      "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc819139/",
      "id": "RL33230_2006Apr13",
      "date": "2006-04-13",
      "retrieved": "2016-03-19T13:57:26",
      "title": "Proposed Federal Income Tax Exclusion for Civilians Serving in Combat Zones",
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      "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc815046/",
      "id": "RL33230_2006Jan30",
      "date": "2006-01-30",
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    },
    {
      "source": "University of North Texas Libraries Government Documents Department",
      "sourceLink": "https://digital.library.unt.edu/ark:/67531/metacrs8371/",
      "id": "RL33230 2006-01-10",
      "date": "2006-01-10",
      "retrieved": "2006-02-28T09:03:00",
      "title": "Proposed Federal Income Tax Exclusion for Civilians Serving in Combat Zones",
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      "topics": [
        {
          "source": "LIV",
          "id": "Taxation",
          "name": "Taxation"
        },
        {
          "source": "LIV",
          "id": "Military personnel",
          "name": "Military personnel"
        },
        {
          "source": "LIV",
          "id": "Income tax",
          "name": "Income tax"
        },
        {
          "source": "LIV",
          "id": "Defense policy",
          "name": "Defense policy"
        }
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  "topics": [
    "Foreign Affairs"
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}