Bill would exempt all active-duty military from taxes

Current law only exempts members who serve directly in combat zones.

Last week, Culberson sent a "Dear Colleague" to lawmakers asking them to support the legislation that he initially introduced in the 107th session.

"There are over 1.3 million men and women in our active force, who pay a staggering $2.5 billion in federal income taxes," wrote Culberson. "These men and women deserve our support, both moral and financial."

Meanwhile, Rep. Gresham Barrett, R-S.C., will soon introduce legislation to allow guardsmen or reservists who are activated for at least 90 days to make one-time penalty-free early withdrawals from their individual retirements accounts.

In his "Dear Colleague," Barrett said that many guardsmen and reservists have been called into service since the Sept. 11, 2001, terrorist attacks and again for action in Afghanistan and now the war in Iraq, taking drastic cuts in pay.

"I think we owe it to them to ensure that these families are able to use all their resources to cover their bills during this time," Barrett wrote.

The legislation would cover any withdrawal since Sept. 11, 2001, and extends through Sept. 12, 2005.