Let‘s not kid ourselves folks. American service wo/men are NOT tax exempt! The only time that they do not pay income tax is while they are serving in a theatre of War, in that case, that specific month would be exempt from taxes.
As for General‘s making $170,000/year and how wrong an increase for them is... I don‘t believe the PM even makes that kind of money.... Just remember that once you are making 6 figures a minimum of 50% of that money is lost to taxes. So a General that has an income of $110,000 (more realistic) will only see $55,000 of that money. While a young corporal who is in the lowest tax bracket will only lose 15-20% of his Gross monthly earnings to taxes. IF he grossed $40,000/year, he would net $32,000/year. That‘s only a difference of $23,000/year NET ! ! !