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This bill would make the regular pay that active-duty service members earn not count as taxable income. In simple terms, your normal military paycheck would be tax-free. The IRS would update paycheck withholding so less (or no) tax is taken out up front.
There is a special rule: if a person has served as a Member of Congress in the past 10 years, they would not get this tax break. The change would start with the 2025 tax year. The bill also tells a federal efficiency office to find spending cuts that match the amount of tax revenue lost.