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]

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.