Has the rate of backpay ever been challenged?

[Lemuel]

Has anyone ever challenged the rate of Backpay?  I received back pay at 100% TDIU after living in poverty on my in-laws for almost 40 years.  When the Fifth was ratified, the U S was on the Gold Standard.  When Section 4 of the Fourteenth was ratified we were still on the gold standard.

The argument would be that by paying veterans in cheaper prior year dollars the Government is taking property (gold equivalent or goods and services out of our shopping baskets) without just compensation, a right guaranteed under the Fifth and Fourteenth Sec. 4 (specifically to veterans) Amendments.

My 07/06/2020 award would be a good example.  If paid in current dollars it would be over $300,000.00 more.  Enough to have bought a house instead of living on the street in DC.

[brokensoldier244th]

They already account for CPI every year, and they pay based on what it would have been the year it was retroactively awarded. I don't think you are going to find traction with this argument. Sec 4 of the 14th amendment specifically limits it to "insurrection or rebellion", neither of which apply to you. The rest of the 14th, while it mentions deprivation of property, it also says without "due process of law". VA pay is subject to existing law and is apportioned as such. The 5th deals with double jeopardy and criminal conviction- what does that have to do with retroactive veteran pay? 

[broncovet]

I agree with you Lemeul.  In contract law, "Time is of the essence".  They have to get the job done WHEN they promise.  

VA's delays, at the Veterans expense, because they can.  

Its financially beneficial to the VA to delay your claim as long as possible:

1.  They "delay until we die" isnt just made up, many Veterans do die waiting on benefits.  "Unless" their heirs know to file a "substitution of claimant" in a timely manner, the claim dies with the Veteran, and his heirs never get paid.  Result:  The VA saves money with delays.  

2.  "Even when" the Veteran prevails and wins benefits, its paid to the Veteran at deflated dollars of yesteryear, and, of course, "0" interest is due to the Veteran.  However, if Veterans are late on payments (for any reason) we are charged penalties and interest.  Try not paying your taxes on time, and see what the IRS says about "0" interest and zero penalties.  I will save you the trouble:  NO.  The Veteran must pay interest and penalties on any taxes owed, if not paid timely.  

For reasons above, The VA has a "financial incentive" to delay your claim as long as possible.  As long as this financial incentive exists, the delays continue unabated.  

     Again, its only fair.  We have to pay interest and late fees on payments we owe, why not on those owed us?  

[broncovet]

The VA "gets away with this" because they have 500 lawyers on staff and we cant afford to fight them, up to , and including the SCOTUS.  

You may be the guy to challenge them on this.  File a nod, appeal it, (because retro was paid in deflated dollars without interest.)  Then take it to the board, after denial.  

Then appeal the board denial, and the cavc denial, and, likely federal circuit denial.  

Maybe Mr. Ken Carpenter can help you.  

Edited August 1, 2020 by broncovet (see edit history)

[brokensoldier244th]

You are also not being taxed on any of it-ever. Pretty sure that would eclipse any interest that might have accrued if you were taxed on it at whatever bracket it would fall into at the time its deposited and had to pay that, too, along with the yearly taxes continuing forward. 

[Lemuel]

1 hour ago, brokensoldier244th said:

They already account for CPI every year, and they pay based on what it would have been the year it was retroactively awarded. I don't think you are going to find traction with this argument. Sec 4 of the 14th amendment specifically limits it to "insurrection or rebellion", neither of which apply to you. The rest of the 14th, while it mentions deprivation of property, it also says without "due process of law". VA pay is subject to existing law and is apportioned as such. The 5th deals with double jeopardy and criminal conviction- what does that have to do with retroactive veteran pay? 

1. The fact that they account for CPI every year since? only holds to the fact there is a value difference in todays dollars and yesterdays.

2.  Fifth Amendment--in part, "nor shall private property be taken for public use without just compensation."

3.  Fourteenth Amendment, Sec. 4, in part after the stiffing of the Revolutionary War veterans, the War of 1812 veterans, the public was demanding a change which is included with the separation of rebels from federal veterans,  "The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned."

My argument is simply that if you take four eggs from my shopping basket that I would have had if you paid that debt that, "shall not be questioned" you have run afoul of the "private property taken for public use without just compensation."

[Lemuel]

19 minutes ago, broncovet said:

The VA "gets away with this" because they have 500 lawyers on staff and we cant afford to fight them, up to , and including the SCOTUS.  

Thanks for the support, Bronco.  I'm going to take a whack at it.

As for the "tax" it is part of the award to be tax free.  Compensation is nowhere near tort claims.  And Bronco, you are absolutely right.  This needs to be addressed if for no other reason than the continued delays.  The 34 years 9 months that I was delayed is a bit much.  And there are just too many that were delayed to poverty stricken suicide.

[brokensoldier244th]

But they aren't witholding pay earned already at the time, like during the Revolutionary war, or the War of 1812 that was for services rendered. That pay was already earned.

Up until the time you are awarded disability benefits you weren't owed anything. There was no debt for the government to satisfy.  In any case, that you are being paid tax free dollars both at the time of the award, and for the duration of your life is just compensation, in my opinion. Dept of Labor lawsuits pay lump sum retroactive benefits, too, with interest, even. However, once you get that lump sum payment you are taxed at whatever applicable bracket applies to the award.  Federal Contract Compliance Manual Dept of Labor Sec. 7C06 (f) and (g). 

[broncovet]

Veteran's compensation is paid to Vets "taxes already deducted"...so we get less.  For example, a 100 percent Veteran gets 3106.04 per month or 37,272 per year.  However, the median income is 61,900 per year.  Source:

https://www.census.gov/library/stories/2019/09/us-median-household-income-up-in-2018-from-2017.html#:~:text=Real median household income in,1.8% and 3.3% annually.

(VA income is supposed to replace income from working lost due to the injuries).  So, instead of paying us 61,900 per year, they give us 37,000 per year and this is justified because we "dont have to pay taxes" (seperately).  We pay taxes on food, cars, everything else we buy, and even VA income is countable for pension purposes, so you cant get VA disability income and pension.  

 

Workmen's compensation is not taxable, mostly because the compensation given to workers "has already" had the taxes deducted.  Otherwise, workers would get "regular pay" with benefits for an injury, which would be much more.  

https://www.thehartford.com/workers-compensation/taxable#:~:text=The%20quick%20answer%20is%20that,taxes%20on%20workers'%20comp%20benefits.

Ditto for VA benefits.  The idea is we can accept much less because its "tax free".  Municipal bonds is the same thing.  Muncipal bonds are tax free, but pay a lower interest rate than taxable bonds.  

Its like Verizon "giving you a free phone" by subscribing to the service.  Do you think the phone is "really free"?  I dont.  We pay for it, our bill just does not "seperate it out".  

I would rather have my 61,900 per year and pay taxes on it than the 37,000 I get without taxes.  The VA is fooling us into thinking we arent paying taxes...they just already deducted them, and didnt give us a seperate accounting.  Just like Verizon giving us a free phone. 

More importantly, we were injured making our country free.  Our country exists because of brave men and women who fought and died for freedom.  Freedom isnt free, and Veterans fully deserve our benefits.  We earned them just like employees earn retirement, pensions, health insurance, etc...only more so.