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WASHINGTON, Aug 19, 2006 (UPI via COMTEX) -- As many as 61,000 U.S. military widows lose out on thousands of dollars a year because of a 1972 law disparagingly known as the "widow's tax."
The law, which hits hardest at the widows of lower-ranking service members, reduces the amount of money widows receive from life insurance plans veterans purchase for their wives, The New York Times reported Saturday.
The reduction is equal to the amount of money the widow receives from the Department of Veterans Affairs.
For example, if a widow receives $1,033 in Dependency and Indemnity Compensation from Veterans Affairs, she is not entitled to get an additional $1,000 from the Survivor Benefits life insurance plan that her veteran husband bought for her.
The Senate passed a bill to change the law last year and again this year. But House Republican leaders oppose the change because of its steep price tag, nearly $9 billion over 10 years, Senate aides from both parties say.
URL: www.upi.com Copyright 2006 by United Press International
