[Congressional Record Volume 144, Number 151 (Wednesday, October 21, 1998)]
[Senate]
[Page S12943]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    FARMERS' COOPERATIVE ACT OF 1997

  Mr. LOTT. Mr. President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of Calendar No. 291, H.R. 2513.
  The PRESIDING OFFICER. The clerk will report.
  The legislative clerk read as follows:

       A bill (H.R. 2513) to amend the Internal Revenue Code of 
     1986 to restore and modify the provision of the Taxpayer 
     Relief Act of 1997 relating to exempting active financing 
     income from foreign personal holding company income and to 
     provide for the nonrecognition of gain on the sale of stock 
     in agricultural processors to certain farmers' cooperatives.

  The PRESIDING OFFICER. Is there objection to the immediate 
consideration of the bill?
  There being no objection, the Senate proceeded to consider the bill.


                           Amendment No. 3839

  Mr. LOTT. Mr. President, I understand Senator Moynihan has a 
substitute amendment at the desk.
  The PRESIDING OFFICER. The clerk will report.
  The legislative clerk read as follows:

       The Senator from Mississippi (Mr. Lott), for Mr. Moynihan, 
     proposes an amendment numbered 3839.

  The amendment is as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. EXEMPTION FROM FEDERAL TAXATION OF REWARD PAID IN 
                   UNABOMBER CASE IF USED TO COMPENSATE VICTIMS 
                   AND THEIR FAMILIES OR TO PAY CERTAIN ATTORNEYS' 
                   FEES.

       (a) In General.--For purposes of the Internal Revenue Code 
     of 1986, if the requirements of subsection (b) are met with 
     respect to the amounts received by David R. Kaczynski of 
     Schenectady, New York, and his wife, Linda E. Patrik, from 
     the United States as a reward for information leading to the 
     arrest of Theodore J. Kaczynski in the ``Unabomber'' case, 
     then--
       (1) their gross income shall not include (and no deduction 
     shall be allowed to them with respect to) such amounts; and
       (2) any payment by them to victims and their families in 
     such case shall not be treated as a gift for purposes of 
     subtitle B of such Code and shall not be included in gross 
     income of the recipients.
       (b) Requirements.--For purposes of subsection (a), the 
     requirements of this subsection are met if all of the amounts 
     described in subsection (a) are used only for the following 
     purposes:
       (1) Payment by Mr. David R. Kaczynski and Ms. Linda E. 
     Patrik before September 15, 1998, to their attorneys for 
     attorneys' fees incurred by them in connection with the 
     ``Unabomber'' case.
       (2) Payment by Mr. David R. Kaczynski and Ms. Linda E. 
     Patrik of State and local taxes on such amounts.
       (3) Payment of all remaining amounts by Mr. David R. 
     Kaczynski and Ms. Linda E. Patrik no later than 1 year after 
     the date of the enactment of this Act to the victims and 
     their families in the ``Unabomber'' case or to an irrevocable 
     trust established exclusively for the benefit of such victims 
     and their families.
       (c) Victims and Their Families.--For purposes of this 
     section, the Attorney General of the United States or her 
     delegate shall identify the individuals who are to be treated 
     as victims and their families in the ``Unabomber'' case.

  Mr. LOTT. Mr. President, I ask unanimous consent that the amendment 
be agreed to, the bill, as amended, be read three times, and passed, 
and the motion to reconsider be laid upon the table, that the title be 
appropriately amended, without any intervening action.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment (No. 3839) was agreed to.
  The bill (H.R. 2513), as amended, was considered read the third time 
and passed.
  The title was amended so as to read:
  Amend the title so as to read: ``A bill to provide tax-free treatment 
of reward monies devoted to the victims of ``Unabomber'' Theodore 
Kaczynski.''
  Mr. MOYNIHAN. Mr. President, the Senate has done the right thing by 
agreeing to support David R. Kaczynski in his effort to donate more 
money to the victims of his brother, ``Unabomber'' Theodore J. 
Kaczynski. I hope the House of Representatives will now follow suit. 
This is a rare opportunity for Congress to write a happy ending to a 
sad story, and we should seize it. The U.S. Congress should not be in 
the business of discouraging acts of altruism.
  In August, Mr. Kaczynski and his wife, Linda E. Patrik, constituents 
of mine from Schenectady, New York, received a $1 million reward from 
the FBI for information leading to the 1996 arrest of Theodore 
Kaczynski. Immediately upon receiving the reward, David Kaczynski 
pledged that after payment of taxes and attorney's fees, all reward 
monies would go to the Unabomber's victims and their families. Mr. 
Kaczynski then contacted my office to ask whether Congress could 
provide, through legislation, that no tax be imposed so that a greater 
amount would be passed on to the victims. The uniquely compelling case 
for this measure was clear from the moment David Kaczynski first 
contacted me. I agreed and immediately introduced legislation, which 
was cosponsored by Senators D'Amato, Baucus and Burns.
  Since then, our legislation has received the support of others. 
Senators Roth, Hatch, Dodd, Lautenberg, and Moseley-Braun have all 
stated their strong support for the measure, and in the House, 
Congressman Mike NcNulty and Amo Houghton of New York, both Ways and 
Means Committee members, have introduced companion legislation.
  The Kaczynski family's decision was a wonderful, selfless act of 
humanity. Congress ought to applaud and support this fine example. It 
is good public policy to encourage reward recipients to donate those 
proceeds to the victims of violent crime. Without this legislation, 
federal taxes on the reward would total approximately $355,000. In 
other words, the Federal Treasury would get that money instead of the 
victims. It would be unjust for the Federal government to take that 
money when we have the power to pass it on to the victims.
  I thank Senators for supporting this important measure, and I urge 
its early enactment.

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