Taxation of COLA
Overseas COLA is a non-taxable allowance. Stateside COLA, however, is taxed. To offset these taxes, these COLA rates incorporate an 18% increase to cover the average income tax.
Read more about this topic: Cost Of Living Allowance (U.S. Military)
Famous quotes containing the word taxation:
“Every diminution of the public burdens arising from taxation gives to individual enterprise increased power and furnishes to all the members of our happy confederacy new motives for patriotic affection and support.”
—Andrew Jackson (1767–1845)