SECRETARY OF DEFENSE, WILLIAM J. PERRY, STATEMENT ON PROPOSED TAX RELIEF BILL FOR PERSONNEL IN THE FORMER REPUBLIC OF YUGOSLAVIA
"Secretary (of the Treasury Robert E.) Rubin and I are very pleased to
announce a bill allowing significant and favorable tax treatment for Department
of Defense personnel serving in and around the former Republic of Yugoslavia.
President Clinton will send the legislation to Congress this week. This
proposal demonstrates the Clinton Administration's deep appreciation for the
hardships endured by the men and women who are enforcing the Dayton Peace
"When we first deployed our men and women to the area of operation, we wanted
to ensure that they and their families were well supported. Our people
received the best training while they were preparing to deploy. They also
receive additional pay and allowances, and free mailing privileges. We paid
special attention to family members back home by setting up family readiness
briefings and support groups and implemented assistance groups to work with
children of deployed service members. We put into place a robust system of
acute health care in the field and ensured there would seamless health care for
those who remain at our overseas bases. This proposal is one more way the
Administration is showing its commitment to the well being of our troops
serving in Joint Endeavor.
"There are many tangible benefits to this proposal. Service members in the
`Joint Endeavor Area of Operations', about 25,000 of them, would obtain the
same kind of tax treatment as our service members did in Operation Desert
Storm. These individuals would receive all of the combat zone tax benefits of
the Internal Revenue Code, such as an exclusion of military pay for federal
income tax purposes, for the period of time designated by the Executive Order.
Other tax benefits would also be available for these individuals, as well as
DoD civilian personnel and deployed service members supporting the mission
outside of imminent danger pay areas. These benefits include additional time to
file returns upon return from the operation, and waivers of interest and
penalties on amounts owed."
"This bill proposes the foundation for recognition of service in an arduous,
dangerous environment. I applaud Secretary Rubin for this initiative, and hope
that these important changes are enacted."