[Congressional Record Volume 144, Number 137 (Monday, October 5, 1998)]
[Senate]
[Pages S11450-S11451]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. D'AMATO:
  S. 2549. A bill to provide that no Federal income tax shall be 
imposed on amounts received by Holocaust victims; to the Committee on 
Finance.


               holocaust assets tax exclusion act of 1998

 Mr. D'AMATO. Mr. President, today I introduce the ``Holocaust 
Assets Tax Exclusion Act of 1998.'' This act will make all income 
received by Holocaust

[[Page S11451]]

survivors or their heirs from any settlement or adjudication in their 
favor, non-taxable. This legislation is now very much needed because 
survivors of the Holocaust who had assets withheld from them by Swiss 
banks or others have finally received justice in the form of a 
settlement between the banks and the survivors' attorneys in August 
1998. The settlement was for $1.25 billion for survivors worldwide. We 
must remember, one-third of all Holocaust survivors live in the United 
States. This is why this legislation is so needed.
  In addition to these recipients, survivors who are needy, will be 
receiving one-time payments from the Swiss Humanitarian Fund 
established by the Swiss government in 1997. In both cases, payments 
from the Swiss banks and other sources like this should be excluded 
from taxation because they are receiving back what was rightfully 
theirs to begin with. The sum total of payments coming to the needy 
Holocaust survivors in the United States from this fund will be $31.4 
million. It would be a travesty if the IRS were to decide that these 
funds would be taxable.
  Mr. President, it is necessary to understand that the survivors who 
sued the banks and settled in August 1998 did so because this was the 
only avenue left open to them to seek justice. Deprived of their 
assets, or those of their families for over 50 years, survivors fought 
unsuccessfully until now to receive what rightfully belonged to them.
  With the average age of Holocaust survivors at 80, there is little 
time for debate over these payments which will ease life for the 
survivors in their final years. To tax them for the long overdue 
receipt of assets would be wrong. This is why I am offering this 
legislation. The survivors of man's greatest inhumanity to man deserve 
justice. After escaping death at the hands of the Nazis, they were 
again victimized by the Swiss bankers. Now that they have received some 
measure of justice, let us not take their assets from them again.
  Mr. President, I urge my colleagues to support me in this legislation 
and urge its speedy passage.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2549

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. NO TAX ON AMOUNTS RECEIVED BY HOLOCAUST VICTIMS.

       (a) In General.--For purposes of the Internal Revenue Code 
     of 1986, gross income shall not include any amount received 
     by an individual from any person as a result of a settlement 
     or adjudication in the individual's favor arising out of any 
     moral or legal injustice experienced by the individual as a 
     Holocaust victim, including any amount received from the 
     Swiss Humanitarian Fund established by the Government of 
     Switzerland.
       (b) Effective Date.--This section shall apply to amounts 
     received in taxable years beginning before, on, or after the 
     date of the enactment of this Act.
                                 ______