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Combat personnel would be able to put more of their pay into retirement accounts under a bill passed in the U.S. House of Representatives on Monday. This makes 5th District Rep. Virginia Foxx, R-Banner Elk, the first freshman to create and have pass a policy-changing bill this session

The legislation, entitled the Heroes Earned Retirement Opportunities (HERO) Act will make members of the Armed Forces earning hazard pay eligible to count non-taxed combat pay when figuring Individual Retirement Account contributions. The current tax code establishes that only taxable compensation is what is eligible to be placed in IRAs.

“Hazard pay wages are not taxed – nor should they be. You cannot take out an an IRA unless you have taxable income,” Foxx said Monday. “Some of our the income might be taxable, which would make them ineligible to put any money in an IRA. I believe that those who are responsible enough to save should be able to take full advantage of IRAs – especially since they have served their country.”

A letter from a father of a serviceman in Forsyth County alerted Foxx to the problem with the tax code.

“I am glad this constituent brought this problem to my attention. After contacting the IRS, I decided to do something to solve this problem,” she said. “The best ideas always come from my constituents back home and that's why I spend so much time in the district. I'm pleased to be able to help this soldier and his comrades.”

Foxx said that support for the bill was unanimous. Some of the most significant members of the House, such as 29-year veteran and a former prisoner of war, Sam Johnson, R-Tex., were co-sponsoring the bill.

“I'm humbled by all the support I've gotten. Not a single negative thing was said about it on the floor,” she said. “It's a coup to get a major piece of legislation passed in the House.”

Foxx has already spoken with Sen. Richard Burr, R-N.C., and plans to be in close contact with other members of the Senate as they prepare to hear the bill.

“Sometimes they lump bills together into one,” she explained. “While I'd love for my bill to pass as a standalone, what I want is the idea to pass. As long as our military people get the benefit of this idea.”
“Humbling and exhilarating,” are the words Foxx used to describe being the first freshman to create and pass a policy-changing bill.

“It's a tribute to having a good idea. It takes good ideas and a lot of hard work,” she said.

She also praised her constituents for taking an active part in government and bringing concerns to their representatives.

“I think it's important that we point out that one person can make a difference in this world.”