[Congressional Record Volume 144, Number 85 (Thursday, June 25, 1998)]
[Senate]
[Page S7216]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              SUPREME COURT DECISION ON THE REACHBACK TAX

 Mr. CONRAD. Mr. President, the Senate has often heard me speak 
about the people of North Dakota, and at times I have been compelled to 
speak about the injustices North Dakotans have been forced to endure 
because of something our Federal government has done to them.
  Today, the Supreme Court handed down a decision which should mark the 
beginning of the end for the reachback tax, which has been a terrible 
burden for the largest lignite producer and largest coal industry 
employer in our state.
  This very important part of our economy was unfairly and unjustly 
saddled with the reachback tax under the 1992 Coal Industry Retiree 
Health Benefit Act. The Coal Act has been draining millions of dollars 
from this company every year.
  The Supreme Court, while agreeing that Congress has the power to help 
fund retired unionized bituminous coal miners' health benefits, held 
that Congress did so improperly. We subjected honest, tax-paying 
corporate citizens to a truly onerous levy without an adequate basis 
for doing so. If the Senate had taken the time either in committee or 
in a floor debate to consider fully the scope of this reachback tax, 
perhaps the rebuke Congress received this morning from the Supreme 
Court could have been avoided.
  In the opinion of the Court, the Act places a ``severe, 
disproportionate, and extremely retroactive burden'' on the reachback 
company that brought the action. As such, the Court held that the tax 
imposition it reviewed violates the Constitution's takings clause.
  In short, Mr. President, the Supreme Court has affirmed the arguments 
that many of us have pursued in this body for some time--namely, that 
Congress needs to revisit the whole problem of how to fund the health 
benefits for retired unionized bituminous coal miners.
  Since its inception, I have fought for reform of the Coal Act. Many 
of my colleagues over the years have joined me in this bipartisan 
fight. With the impetus of today's decision by the Supreme Court, the 
Senate should commit itself to fixing the Coal Act soon. I am confident 
that we can devise a plan that assures benefits for affected retirees 
and their families, treats the industry fairly, and passes 
Constitutional muster.

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