[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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