[Congressional Record Volume 143, Number 55 (Thursday, May 1, 1997)]
[Extensions of Remarks]
[Pages E817-E818]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




     EXTENDING STRUCTURED SETTLEMENT RULES TO WORKERS COMPENSATION

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                            HON. JIM RAMSTAD

                              of minnesota

                    in the house of representatives

                         Thursday, May 1, 1997

  Mr. RAMSTAD. Mr. Speaker, I am pleased to join today with Mr. Shaw 
and Mr. Stark

[[Page E818]]

and other colleagues on the Ways and Means Committee from both sides of 
the aisle in introducing legislation to extend structured settlement 
rules under section 130 of the Internal Revenue Code to workers' 
compensation.
  I am a strong supporter of structured settlements. I have seen 
firsthand in Minnesota how structured settlements can help victims of 
severe physical injuries put their lives back together in the wake of a 
disabling injury, help support their families, and instill some hope 
for the future.
  Structured settlements give crucial financial security to victims and 
their families by providing an assured stream of payments into the 
future to cover medical expenses and basic living needs. Structured 
settlements also save taxpayer dollars by ensuring that injury victims 
will not be required to seek indigent care.
  For all these reasons, Congress has sought to promote the use of 
structured settlements through specific tax rules that have been 
enacted in the Internal Revenue Code. Extending the Code section 130 
structured settlement rules beyond physical injuries caused by torts to 
include physical injuries under workers' compensation would provide the 
same financial protection to victims who have suffered serious, long-
term physical injuries in the workplace.
  I understand the Treasury Department testified before Ways and Means 
in the last Congress that it does not oppose this proposal and sees no 
distinction for purposes of the structured settlement tax rules between 
physical injuries suffered from torts and physical injuries suffered in 
the workplace. I also understand the Joint Committee on Taxation 
estimated in the last Congress that the proposal would produce only a 
very minimal revenue loss.
  I join with my colleagues in urging prompt enactment of this 
legislation.

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