To amend title 10, United States Code, to permit retired members of the Armed Forces who have a service-connected disability rated less than 50 percent to receive concurrent payment of both retired pay and veterans' disability compensation, to eliminate the phase-in period for concurrent receipt, to extend eligibility for concurrent receipt to chapter 61 disability retirees with less than 20 years of service, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Disabled Veterans Tax Termination Act''.
SEC. 2. CONCURRENT RECEIPT OF BOTH RETIRED PAY AND VETERANS' DISABILITY COMPENSATION FOR MILITARY RETIREES WITH COMPENSABLE SERVICE-CONNECTED DISABILITIES.
(a) Inclusion of Retirees With Service-Connected Disabilities Rated Less Than 50 Percent.--Subsection (a) of section 1414 of title 10, United States Code, is amended-- (1) by striking ``Compensation'' in the subsection heading and all that follows through ``Subject'' and inserting ``Compensation.--Subject''; (2) by striking ``qualifying service-connected disability'' and inserting ``service-connected disability''; and (3) by striking paragraph (2). (b) Repeal of Phase-In of Concurrent Receipt of Retired Pay and Veterans' Disability Compensation.--Such section is further amended-- (1) in subsection (a), as amended by subsection (a) of this section, by striking the final sentence; (2) by striking subsection (c) and redesignating subsections (d) and (e) as subsections (c) and (d), respectively; and (3) in subsection (d), as so redesignated, by striking paragraphs (3) and (4). (c) Inclusion of Disability Retirees...