This proposal would make pay earned by active-duty members of the Armed Forces tax‑free at the federal level. It says that “gross income shall not include any amount earned by an active duty member of the Armed Forces,” which means their military earnings would no longer count toward federal income tax calculations. A summary from the Library of Congress explains the same idea: amounts earned by active-duty servicemembers would be excluded from gross income for federal tax purposes.

Key points:

• Who is affected: Active-duty members of the U.S. Armed Forces.
• What changes: Their earnings would be excluded from gross income and not taxed by the federal income tax.
• When: The provided text does not state an effective date.