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Members of the armed forces benefit — rightly so — from the Combat Zone Tax Exclusion for every month in which they serve a minimum of one day in or, under certain circumstances, above a qualifying combat zone.

Contractors working in qualifying zones benefit from the Foreign Earned Income Exclusion — for 2009 this is the first $91,400 earned annually — if either the residency or physical presence tests is satisfied. The government pays the company, which then pays the contractor. Contractors must be present in the qualifying zone for 330 days of the tax year.

Any days lost due to war, civil unrest or similar adverse condition can also be counted toward the 330 days.

Federal employees have no such benefit. All income paid by the U.S. government directly to civilian U.S. government employees is subject to normal and full taxation. These individuals serve shoulder to shoulder, figuratively speaking, with an untaxed soldier on one side and a largely untaxed contractor on the other.

Federal employees serve on the same battlefields within the same combat zones, enduring many of the same threats and hardships as the soldiers and contractors. Moreover, these employees may serve in "emergency essential" positions, requiring their continued presence in hostile areas under the same conditions and during the same periods for which portions of the contractor’s 330-day requirement may be waived.

I submit that this disparity effectively constitutes a discriminatory tax policy toward civilian U.S. government employees serving in qualifying combat zones.

Legislation titled Federal Employee Combat Zone Tax Parity Act was attempted in the 109th and 110th Congresses and enjoyed bipartisan support, but died in committees. One has to wonder what possible political winds could be blowing in order to allow this discrimination to continue. This discriminatory taxation is just as unfair today as ever, and even more so considering the time that continues to lapse.

Stanley HarrellCamp Arifjan, Kuwait

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