Schakowsky Calls for End to Veterans Tax

Park Ridge Journal - 11/13/03

U.S. Rep. Jan Schakowsky (D-9th) joined veterans on Monday, Nov. 10, to demand an end to the "Disabled Veterans Tax" and released a study that concludes thousands of disabled veterans throughout Illinois are being denied their full pension because of the tax.

Veterans who spoke included Colonel Thalia Sipple, who retired from the U.S. Air Force Medical Corps after serving 30 years but is not receiving her full pension because of the tax.

Under current law, veterans who have served 20 years or more and retire with a service-related disability cannot receive their full military pension. Their pension is reduced on a dollar-for-dollar basis by the amount they receive in disability compensation. In other words, disability compensation is taxed at a rate of 100%.

During the conference at the Park Ridge VFW, Schakowsky released a study stating more than 7,000 disabled veterans in Illinois are being denied full benefits totaling $32.6 million annually.