[Congressional Record Volume 143, Number 92 (Thursday, June 26, 1997)]
[Senate]
[Page S6479]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    HEART AND HYPERTENSION BENEFITS

  Mr. DODD. Mr. President, I wish to speak briefly about an amendment 
that I have submitted with my colleague from New York, Senator D'Amato, 
to benefit firefighters and law enforcement officers in our respective 
states of Connecticut and New York.
  For the firefighters and police officers of Connecticut, this 
amendment seeks simply to correct a wrong that, while unintentional, 
has cost these committed public servants a great deal of money and 
anguish. It has always been the intention of the state of Connecticut 
to provide its police officers and firefighters heart and hypertension 
benefits tax-free by considering them workmen's compensation for tax 
purposes. Based on that intention, these individuals accepted benefits 
with the understanding that they were not taxable.
  However, the original version of Connecticut's Heart and Hypertension 
law contained language which made the benefits from the statute taxable 
under a ruling by the IRS in 1991. As a result of the problem with the 
state law, and through no fault of their own, these citizens have been 
charged with millions of dollars in back taxes, interest, and penalties 
by the IRS.
  Connecticut has since amended its law, but that change does not help 
those police officers and firefighters who received benefits prior to 
the amendment. This legislation would remove their tax liability for 
heart and hypertension benefits for the years prior to the IRS ruling 
(1989, 1990, and 1991). The bill is narrowly drafted to accomplish that 
limited purpose, and would not affect the tax treatment of benefits 
awarded after January 1, 1992.
  Mr. President, the police officers and firefighters of Connecticut 
serve our state's citizens with courage and compassion. The least we 
can do is provide them with this small measure in recognition of their 
bravery and commitment. I urge my colleagues to support this amendment.
  The measure has been scored to cost $11 million for FY98 only.

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