AZ HCM2017

Urges U.S. Congress to pass the Major Richard Star Act, which would eliminate the "wounded veteran tax" that offsets military retirement pay dollar-for-dollar against VA disability compensation for combat-injured veterans medically retired before 20 years of service.

Affects more than 54,000 combat-injured veterans nationwide and approximately 1,172 in Arizona who were medically retired due to combat-related injuries before completing 20 years of service.

Arizona veterans currently lose approximately $1,200 per month in earned retirement benefits due to this offset, totaling more than $16.9 million per year in lost income statewide.

Military retirement pay and disability compensation serve distinct purposes—retirement pay is earned through service while disability compensation addresses lifelong injury impacts—and veterans should not be forced to choose between them.

Congress has already authorized concurrent receipt for other categories of disabled retirees, and the Major Richard Star Act has bipartisan support from Arizona's congressional delegation.