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Jason Smith - Chairman of the Committee on Ways and Means | Official U.S. House headshot

VSO Equal Tax Treatment (VETT) Act Helps More Veterans Get Critical Services

On the Hill

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Veteran service organizations (VSO) play a crucial role in supporting veterans as they transition back to civilian life and take care of military families. These organizations provide a community that honors the sacrifices made by veterans during their time in the armed forces. However, under current law, donations to VSOs are not tax-exempt if more than 10 percent of their membership are not classified as "wartime veterans."

This unfair distinction has a particularly negative impact on VSOs that serve veterans of recent wars, such as those who have served in Iraq and Afghanistan. These VSOs face challenges in providing critical services and support to the veterans they serve. Recognizing the need for change, the VSO Equal Tax Treatment (VETT) Act has been introduced to address this issue.

The VETT Act, introduced by Rep. Brad Wenstrup (R-OH) and Rep. Jimmy Panetta (D-CA), aims to treat all VSOs equally by allowing deductible charitable contributions to all federally chartered tax-exempt organizations that serve current and former members of the Armed Forces. By removing the current tax-exempt threshold based on the classification of membership, this legislation seeks to level the playing field for VSOs and ensure that they can continue their important work.

The VETT Act has received significant support, including unanimous approval from the Ways and Means Committee. This bipartisan support highlights the recognition of the importance of providing equal tax treatment to all VSOs. The legislation now awaits a vote by the House of Representatives.

Various VSOs have expressed their support for the VETT Act, recognizing the positive impact it could have on their ability to serve veterans effectively. AMVETS, one of the largest VSOs in the country, has voiced its support for the legislation. According to AMVETS National Commander Jan Brown, "The VETT Act is a crucial step towards ensuring that all veterans have access to the critical services they need. We must remove any barriers that prevent VSOs from fulfilling their mission of supporting our veterans."

The Military Order of the World Wars, another prominent VSO, has also expressed its support for the VETT Act. According to its Executive Director, Colonel James F. Moschgat, "The current tax-exempt threshold creates unnecessary obstacles for VSOs, limiting their ability to provide essential services to veterans. The VETT Act will help level the playing field and ensure that all VSOs can continue their important work."

The Jewish War Veterans of the United States, an organization dedicated to serving Jewish veterans, has also welcomed the introduction of the VETT Act. Its National Commander, Burt Rosenthal, stated, "The VETT Act recognizes the importance of supporting all veterans, regardless of their classification. By providing equal tax treatment to all VSOs, we can ensure that no veteran is left behind."

The VETT Act represents a significant step towards ensuring that all VSOs have the resources they need to support veterans effectively. By removing the tax-exempt threshold based on membership classification, this legislation recognizes the value of all VSOs and the critical services they provide to veterans. As the VETT Act awaits a vote in the House of Representatives, the hope is that it will be passed swiftly and become law, allowing more veterans to access the critical services they need and deserve.

To find out more, go to this link: https://waysandmeans.house.gov/what-they-are-saying-vso-equal-tax-treatment-vett-act-helps-more-veterans-get-critical-services/

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