[Congressional Record Volume 142, Number 29 (Wednesday, March 6, 1996)]
[Senate]
[Pages S1608-S1609]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         TAX RELIEF FOR UNITED STATES TROOPS SERVING IN BOSNIA

  Mr. D'AMATO. Mr. President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of H.R. 2778, just received from 
the House.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The clerk will state the bill by title.
  The legislative clerk read as follows:

       A bill (H.R. 2778) to provide that members of the Armed 
     Forces performing services for the peacekeeping efforts in 
     Bosnia and Herzegovina, Croatia and Macedonia, shall be 
     entitled to tax benefits in the same manner as if such 
     services were performed in a combat zone, and for other 
     purposes.

  The PRESIDING OFFICER. Is there objection to the immediate 
consideration of the bill?
  There being no objection, the Senate proceeded to consider the bill.
  Mr. ROTH. Mr. President, the House recently passed legislation to 
provide much needed tax relief for American troops who are performing 
peacekeeping services in Bosnia and Herzegovina, Croatia and Macedonia.
  When our young men and women wear our uniform in these war-torn 
regions, I want them to know that they have my unqualified support. I 
want them to know that they are there for a reason. They are on 
important missions--missions to help free these war-torn areas from 
their undemocratic pasts.
  While I would have preferred to limit our involvement to strategic 
and tactical air and sea support, we must now give our full support to 
our troops. This legislation provides much needed tax relief for our 
troops in Bosnia and Herzegovina, Croatia, and Macedonia.
  Let me briefly outline the major aspects of this legislation. First, 
the bill exempts from Federal income tax military pay received by 
enlisted personnel while performing peacekeeping services in Bosnia and 
Herzegovina, Croatia, and Macedonia.
  Second, the bill exempts military pay received by commissioned 
officers while serving in those areas in an amount equal to the highest 
monthly pay for enlisted personnel which is currently $4,104.80 per 
month.
  Third, military pay received by those hospitalized as a result of 
injuries incurred while performing peacekeeping

[[Page S1609]]

services would be exempt from Federal income tax for up to 2 years 
after termination of peacekeeping activities in the hazardous duty 
area.
  Fourth, the bill extends the time for filing tax returns, paying tax 
and other deadlines to allow our troops to focus on their dangerous 
task rather than on tax deadlines.
  Fifth, the bill reduces Federal estate taxes and forgives Federal 
income taxes for those whose lives are taken while performing the 
peacekeeping mission. Let me just say that I am deeply troubled that 
similar relief was not provided to Americans killed while serving in 
Somalia.

  Sixth, the bill eliminates tax withholding on military pay earned 
tax-free in these hazardous duty areas.
  Seventh, the bill provides special rules for surviving spouses and 
couples who file joint tax returns, as well as an exemption from the 
telephone excise tax for calls made from the hazardous duty area.
  Finally, in addition to the tax relief for military personnel in the 
hazardous duty areas, the bill also postpones various tax deadlines for 
support personnel. To be eligible for such tax relief, the individual 
must be deployed away from such individual's regular duty station and 
performing services outside the United States as part of Operation 
Joint Endeavor. Such relief would be available to Department of Defense 
employees.
  I fully support this legislation and encourage the Senate to pass it 
quickly to ease the tax burden and tax filing requirements on our 
courageous American troops who are serving in these hazardous duty 
areas.
 Mr. DOLE. Mr. President, today is a significant day for our 
troops in Bosnia and Herzegovina, Croatia, and Macedonia. Today the 
Senate will pass important legislation that will provide tax relief to 
our military forces deployed in the former Yugoslavia.
  This relief is essential to ensure that the Internal Revenue Service 
does not make life more difficult for our soldiers than the rigors of 
their Bosnian duty has already. Speaker Gingrich and I announced in 
December our intention to send to the President tax filing and other 
relief for our soldiers. Earlier this week the House passed the 
legislation and I am pleased that the Senate is doing so today.
  I believe that it is critical for Congress to continue demonstrating 
its unequivocal support for our men and women in uniform involved in 
Operation Joint Endeavor and Operation Able Sentry. Our troops have 
more important things to focus on than compiling records, meeting 
paperwork deadlines, or computing their tax liability. And they should 
receive income and estate tax relief for participating in the 
operations.
  I thank my colleagues for voting with me to pass this critical 
legislation.
  Mr. McCAIN. Mr. President, I am pleased to rise in support of H.R. 
2778, a bill designed to provide tax relief for our service men and 
women participating in Operation Joint Endeavor in Bosnia. This bill is 
very similar to S. 1553, a bill I introduced in the Senate on February 
1, 1996, mirroring the efforts of our colleague in the House, 
Congressman Bunning.
  I want to convey my thanks to the House for their quick action in 
approving this bill. The amendments of the House incorporated certain 
modifications and additional provisions which will improve the 
beneficial impact of the bill for our men and women in uniform.
  Whether or not we supported the deployment of United States troops to 
Bosnia, all Americans are considered for the safety and security of our 
fellow countrymen who are deployed as part of Operation Joint Endeavor. 
Although this is a peacekeeping mission, it is clearly not without 
risk. Land mines and sniper fire will continue to threaten our troops 
throughout the duration of this operation. As long as our service men 
and women are on the ground, they may come into harm's way.
  Sadly, we have already experienced the first American casualty in 
Bosnia, and we probably have not seen the last. Let us not forget the 
family of Sfc. Donald Dugan. While enactment of this legislation will 
not return him to his family, it contains provisions which will 
alleviate some of the financial hardships his family may be 
experiencing as a result of his death.
  Because this is a peacekeeping mission and not a war, the President 
has not declared the area of operation to be a combat zone. Therefore, 
existing law does not permit our service members in Bosnia to receive 
any of the tax benefits and relief normally provided to those deployed 
to combat zones. This legislation will extend to American military 
personnel in Bosnia and their families the same benefits available to 
service members who were deployed to the Persian Gulf war.
  The more than 20,000 United States military personnel deployed to 
Bosnia are performing their duties in service to their country. On a 
recent trip to Bosnia, I had the opportunity to personally visit with 
many of our men and women, and I let them know what a fantastic job 
they were doing.
  This bill is a small gesture to show our troops they are not 
forgotten. Its provisions will alleviate their worries about financial 
hardships experienced by their families left at home. It is an import 
expression of our support for their professionalism and patriotism.
  I understand the President has indicated he supports this bill. I 
urge my colleagues to support adoption of this legislation, and I hope 
the President will act promptly to sign it into law.
  Mr. D'AMATO. Mr. President, I ask unanimous consent that the bill be 
deemed read the third time, passed, the motion to reconsider be laid 
upon the table, and that any statements relating to the bill be placed 
at the appropriate place in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  So the bill (H.R. 2778) was deemed read the third time, and passed.

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