Universal National Service Act of 2007 - Declares that it is the obligation of every U.S. citizen, and every other person residing in the United States, between the ages of 18 and 42 to perform a two-year period of national service, unless exempted, either as a member of an active or reserve component of the armed forces or in a civilian capacity that promotes national defense. Requires induction into national service by the President. Allows persons to be inducted only: (1) under a declaration of war or national emergency; or (2) when members of the Armed Forces are engaged in a contingency operation. Requires each person, before induction, to be examined physically and mentally for classification for fitness to perform. Sets forth provisions governing: (1) induction deferments, postponements, and exemptions, including exemption of a conscientious objector from combatant training and military service; and (2) discharge following national service.
Amends the Military Selective Service Act to authorize the military registration of females.
Amends the Internal Revenue Code to permit combat pay otherwise excluded from gross income to be treated as earned income for purposes of the earned income tax credit.
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