Should Military Members Receive Special Benefits?
One longstanding tradition in the military is the benefits Congress has enacted on the behalf of military members and veterans. As any military member can attest, military base pay is nothing to write home about (check out 2009 pay charts). Without the benefits included in the compensation package, most military members would not be able to survive, especially if they have a family.
Congress has passed many benefits packages to help military members live a better life. One such example is the proposed extension of the $8,000 First-Time Homebuyer Credit for military mmbers. The proposal was made to offer military members who spent more than 90 days overseas this year the opportunity to take advantage of the $8,000 First-Time Homebuyer Credit, which they wouldn’t have been able to take advantage of since they were overseas. Sounds fair. But some people disagree.
Disagreeing with special military provisions and benefits
The First-time Home Buyer Credit Extension article for military members was posted on the personal finance blog, Bargaineering.com. It elicited multiple comments, including this reader comment by daemondust, that disagreed with the provision (it can be read in full here).
Yes, actually, I do have a problem with a lot of those programs. What makes military personnel special? They chose the job, they weren’t forced into it. Yes, it’s dangerous, and yes, they have to be away from home for long periods of time, but a lot of other jobs have exactly the same problems but don’t get those benefits.
Don’t misunderstand me, they are doing a service to the country, but I don’t see anything that makes their sacrifice so much more than anyone else’s.
If things were different and they were forced into it, i.e. drafted, then I would be all for compensating them in ways like this. But they weren’t. They chose the job.
Why not extend this benefit to everyone? Even just everyone in the original class? I wasn’t looking for a house when it was first introduced, but financially I’m in a place where I will be soon. Why does it expire for me Nov 30, and these special people have another year? It was their choice to enter a job where they would likely be away for extended periods of time.
Freedom of speech. I love it. As a military veteran I fully support an individual’s right to speak his voice disagree with public policy. And I exercise my right to respond. You see, I believe this is an instance of someone not truly understanding how military benefits work, and why the system is set up the way it is.
In response to the comment
Many military personnel volunteer for military service *because* of those benefits you disagree with. These benefits are considered part of the total compensation package. Again, I will point out the basic military pay chart. The lowest pay grade earns less than $17,000 per year. After 5 years and an average promotion rate, a reasonable salary expectation would be roughly $28,000 per year (E-5 at 5 years). Officers earn more, and require a college degree – lowest rate is just under $32,000 per year and after 5 years it should be around $56,700 (O-3 at 5 years). These numbers represent base pay only. Congress has enacted several different benefots provisions to make life easier on military members, however, these are not included in base pay.
The benefits are kept separate from basic pay for several reasons, but the main reason is that military retirement pay is based off base pay. The lower the government can keep base pay, the lower the retirement pay. Other benefits may change by locale, such as Basic Allowance for Housing BAH), or Cost of Living Adjustment (COLA). COLA is a location pay, which is often found in the civilian world as well. You wouldn’t expect to earn the same amount of money for the same job in Wichita, Kansas as in LA or New York City. Benefits such as BAH, COLA, and other benefits are not included in retirement calculations, and are subject to change.
Additional military benefits
There are dozens of different military benefits, however, not all of them are avilable to all military members or veterans. These are two of the most popular benefits.
GI BIll. The GI Bill actually costs service members $1,200 to join. That money is not refundable if the benefits are not used, including if a military member dies in combat. The majority of eligible participants never use their full GI Bill benefits, even though they paid into them.
VA Loans. VA Loans offer military members a way to buy a home without a down payment and avoid paying PMI. It is also easier for veterans with poor credit to qualify for a VA loan than a conventional loan. However, it is still possible to default or foreclose on a VA Loan. In addition, interest rates for VA loans are often slightly higher than comparable conventional loans because of administration fees that go toward paying for the program.
Is military compensation enough?
Congress has enacted special pay and benefits to entice military personnel to continue serving in jobs that are often more dangerous and often pay substantially less in salary than they could earn in the civilian world (even in government civil service). The benefits that are available make life a little easier for some of the people who put their lives on the line everyday.
Military compensation is a complicated topic, and one that requires study to truly understand how much, and in some cases, how little, some military members earn. And even with study, you can still ask the question, “Do Military Members Get Paid Enough?” The answer is not an easy one to answer, as it is easy to create a scenario to make it appear as though someone is vastly under or over paid. On the whole, I think the program does a good job of giving military members the opportunity to live a comfortable, but not extravagant life. And I don’t think that is too much to ask.
Related information about military benefits:
- More information about the GI Bill and additional college funding for veterans).
- Military Discounts.
- GI Bill information.
- VA loan information.
Related posts:2009 Veteran’s Day Discounts
about 6 months ago
Everyone knows that eating your fruits and veggies is one of the best things you can do for a growing body.
I found a website that lists the health benefits of eating fruits and vegetables, so I hope it helps you better than I can explain myself =)
Best of luck!
about 6 months ago
You have been married over 10 years which means she is entitled to half already.
You were screwed when you went past the 10 year mark.
about 6 months ago
told me that it was my job / what will i do if you DON't come back .That last one was the hardest !!! I was on my way to Nam and THAT was what I was thinking but not saying !
about 6 months ago
Congress has improved this plan from the first version that came out last year. Most of the mechanics of the credit will be the same as under the 2008 rules:
•The credit will be claimed on a tax return to reduce the purchaser's income tax liability.
•If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.
Congress Improves Homebuyer Tax Credit
•The credit amount is increased from $7500 to $8000.
•The credit continues to apply only to first-time homebuyers.
•Changes are effective for purchases on or after Jan 1, 2009 and before Dec 1, 2009.
•2009 purchasers can make an election to claim the credit on their 2008 tax return.
•The credit is refundable. The amount of the refund is computed as part of the 1040 tax return filing.
•The unpopular repayment feature of the 2008 version is eliminated for 2009 purchasers. Unfortunately, eligible 2008 purchasers will still be required to repay the credit.
•While the repayment is eliminated for 2009, any credit that is taken for 2009 will be recaptured and paid to the IRS from sales proceeds if the residence is sold within three years of the date of purchase.
•DC homebuyers are eligible for the $8000 credit (In 2008, DC homebuyers had a separate, nonrepayable $5000 tax credit available to them that had already been in effect for several years.)
•Purchasers who finance their 2009 purchases with funds from a state/local housing bond authority will be eligible for credit.
about 6 months ago
No, their Insurance won't cover you, you have to be 16 unless you have a workers permit.