re: Active Military Service - Exemption from paying Federal Taxes

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So by your logic does a employee of Lockheed Martin pay taxes when they are working from government contracts? Bc that is where the money is coming from. What about contractors working on a federal highway?

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That is my logic, yes. If you are paid through the means of taxation, then you can't pay taxes on those dollars.

Rather, the taxes one ostensibly pays aren't in any way meaningful towards overall expenditures.

I'm more than happy to be wrong. I just don't see how taxes paid on taxes distributed are anything more than a fiction on net pay.

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but there are programs in place to help them through the award of federal contracts.

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that and minority/women owned businesses too, ruined many a legit business when they came into play

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Military personnel are paid via taxes. They can't possibly contribute to tax revenue.

This is not to demean anyone, it's just a reality.

Anyone who receives their income from the federal government doesn't really pay federal income tax in a real sense.

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They pay taxes in a very real sense --- the pay is deducted from their paycheck.

I get your point that they are not paying the federal gov't "new money" but they are paying them anyway.

As for military, no taxes while on active duty and no taxes on their pension. They should pay taxes on any non-military income they have.

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Not really, still in.

Were you a Fobbit?

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I enlisted but didn't make it through basic training due to injury and emotional stress. I did get medically retired from basic training and so I get a very small retirement check each month.

Woo boy. You're a treat.

Shouldn't pay income tax while on duty.

It's a volunteer force that represents roughly 1% of the population. Those that are most likely to be deployed into war zones to do war fighting are an even smaller portion.

We should all be happy to subsidize these folks while they're on duty.

When they retire, they rejoin the tax base. That said, their pensions should be taxed at the absolute lowest rate(s) possible, how ever formulated...

I’ll take that every single day.

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As it stands, there is no tax revenue to be gained from personnel. It is just an accounting trick. A dollar gained or a dollar given away is all the same for the purposes of overall expenditure.

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Well you'd run out of money faster if you kept pay the same and waived federal taxes. It's not completely circular. If you tax them and they give it back to the government, your argument is they'll turn right back around and give it back to the servicemen. While true, that method stretches the money longer, even if it doesn't increase the total cumulative dollars paid.