[Congressional Record Volume 145, Number 52 (Thursday, April 15, 1999)]
[Senate]
[Pages S3758-S3761]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             UNIFORMED SERVICES FILING FAIRNESS ACT OF 1999

  Mr. COVERDELL. Mr. President, let me explain for a moment where we 
are here. We have, by unanimous consent, 1 hour equally divided on S. 
767.
  S. 767 is cosponsored by Senators Levin, Roth, Torricelli, Abraham, 
Cleland, McCain, Allard, Helms, Collins, Brownback, Frist, Johnson, 
Hagel, Bryan, DeWine and Grams. Senate bill 767 is identical to the 
legislation that passed unanimously in the House Ways and Means 
Committee, and which will be here later this afternoon at about 4 
o'clock. When that gets here, we will vote on the House version rather 
than the substitute that I just described because there has been an 
objection on the other side. It is a bit perplexing. But we have had an 
objection. We don't want internal differences to in any way for one 
moment delay the intent of this bill. I think everybody will understand 
that in a moment. So we are just simply setting the objection aside and 
we will accept the House version. I am sure it will be an overwhelming 
vote.

  Mr. President, I ask the clerk to report the bill by title.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The clerk will report.
  The legislative assistant read as follows:

       A bill (S. 767) to amend the Internal Revenue Code of 1986 
     to provide a 2-month extension for the date for filing a tax 
     return for any member of a uniformed service on a tour of 
     duty outside of the United States for a period which includes 
     the normal due date for such filing.

  There being no objection, the Senate proceeded to consider the bill.
  Mr. COVERDELL. Mr. President, I rise today to ask my colleagues to 
support legislation that will help our men and women serving in 
Operation Allied Force.
  I might point out that part of the reason we are accepting this House 
version, due to this skirmish on the Senate floor yesterday afternoon, 
is because we only have some 12 hours left. This is April 15. These 
families needed to get this message, frankly, yesterday. But today I am 
confident that this relief, this comfort, that we are offering to the 
men and women who are on the front line today in Kosovo will be of 
enormous comfort and assistance to their spouses and to their families.
  In short, the legislation does three things.
  I might point out that the Senate substitute was identical in 
language to the House version that will be coming here later this 
afternoon on which we will vote.
  The legislation does three things.
  First, it exempts all U.S. troops serving in the Yugoslav theater of 
operations from being taxed on their hazardous duty pay. That is the 
additional pay they receive over their regular pay for being a 
hazardous operation. That will not be taxed when this passes. The 
danger pay that you receive on the periphery of the combat theater will 
not be taxed.
  Second, it grants our troops a 180-day filing extension for their 
1999 income tax return. The 180 days begins when they return from duty 
in the combat zone.
  Third, it exempts our troops from the 3 percent excise tax levied on 
long-distance telephone calls to reduce somewhat the burden of a long-
distance call home whenever they have a chance to do that.
  Several days ago, the President signed an Executive order declaring 
Yugoslavia and certain areas surrounding it a combat zone. This 
declaration in turn provides troops serving in the zone with certain 
tax breaks which this legislation will codify and expand. It will 
expand it, for example, to troops like those in Georgia who are 
fulfilling the refueling missions in the combat zone. The bill takes 
the President's order a step further by providing these same level of 
tax breaks and filing extensions to those personnel who have been 
relocated to the combat zone area and are receiving imminent danger 
pay.

  Mr. President, I believe this is an important additional provision 
that the President by law cannot extend through an Executive order. At 
a time when our men and women are putting their lives on the line in 
the name of freedom, we should do what we can to relieve some of the 
worries associated with income tax burdens and filings associated with 
the timing of the conflict occurring within 2 weeks of income tax day, 
April 15.
  Mr. President, we have several other Senators who are here to speak 
on the measure. Before they get here, let me briefly say that we are 
deeply appreciative for the enormous bipartisan support--and I named 
the coauthors on both sides of the aisle--to get this done. My one 
regret is that we have been delayed a day by ``internal process.'' That 
is the most polite way to describe it. But we are going to get this 
done.
  I hope anybody who is watching or listening to this who is related in 
any way to the families and spouses of those troops for whom we think 
of every minute of every day will tell them that their significant 
income tax relief burden is being lifted so that they ought not have to 
stand in that long car line sometime tonight trying to get this in. 
They have been granted an extension, and a significant one. Depending 
on the pay grades of those involved, there is rather substantial tax 
relief, because, as I said a moment ago, with the passage of this act, 
those additional pays that are received by these troops for hazardous 
duty or imminent danger will not have an income tax applied against 
them. So it should be very meaningful.
  Let me quickly say that this is no windfall. If anybody listening to 
me has ever been around a serviceperson

[[Page S3759]]

who was called away for combat, just stop and think about it. All kinds 
of new costs come into play. You have a breadwinner that is somewhere 
else. You are trying to communicate. You have many associated costs.
  So what we are doing here is not a windfall. It is a move to help 
those families deal with the inordinate kinds of problems that are 
associated with taking care of the family when only half the parents 
are still there. In all practicality, this probably doesn't do enough. 
But I hope that for anybody listening this will be a reminder that the 
Congress is trying to do everything it can to be of assistance to those 
troops.
  I see I have been joined by my distinguished colleague from Maine. I 
yield up to 10 minutes to the Senator from Maine on this measure.
  The PRESIDING OFFICER. The Senator from Maine is recognized.
  Ms. COLLINS. I thank the Chair.
  Mr. President, first, I commend the leadership of my good friend from 
Georgia in taking the initiative in this area. It is typical of his 
leadership on so many issues. I am very pleased to join him today on 
the Senate floor.
  I rise today as a cosponsor of the Uniformed Services Filing Fairness 
Act of 1999 introduced by my good friend, Senator Coverdell, and as a 
supporter of H.R. 1376, which we will vote on shortly. These measures 
are intended to demonstrate concretely and clearly our support for the 
men and women serving our country in the region of Yugoslavia by 
providing them with tax relief on their hazardous duty pay, excise tax 
exemptions on their long-distance telephone calls, and an extension to 
allow them to file their tax returns after the April 15 deadline.

  Today is tax day, a day when millions of Americans rush to their 
local Post Offices to mail their tax returns. However, today some brave 
Americans find themselves thousands of miles away from their hometowns 
engaged in a conflict rather than concerned with a tax filing deadline. 
Today and every day, our troops put their lives on the line. The 
sacrifices they make in serving our Nation both here at home and abroad 
prompt our gratitude. For those forces stationed overseas, the toll is 
especially great. Our troops now serving in the operations in Kosovo 
face tremendous burdens in trying to carry out their missions while 
protecting themselves and their comrades. Our service men and women 
abroad face the additional hardships and stress of being separated from 
their loved ones, their families, their homes, and their friends. These 
troops deserve the opportunity to concentrate on their dangerous 
mission without having to worry about government paperwork at home.
  This legislation is an opportunity to demonstrate our support for our 
troops by our actions, not just with our words. My thoughts and my 
prayers are with those brave men and women and their families here at 
home. I urge my colleagues to support this modest but important 
measure. Again, I commend the Senator from Georgia for his leadership.
  I yield the floor.
  Mr. COVERDELL. Mr. President, I thank my good friend and colleague 
from Maine for her statement and all of her energy, which I appreciate 
and enjoy so much, on so many subjects. I thank her very much for 
speaking on the importance of this measure.
  We deal with so many varied issues that sometimes a very simple, 
clean-cut act like this gets overlooked in the thrashing about that 
goes on in Washington.
  I am pleased that the Congress has been able to do this, and do this 
expeditiously. I just asked my young assistant to make sure that the 
minute this passes, probably between 4 o'clock and 4:30, the Pentagon 
makes sure all of our troops get this message quickly. They need to 
help us make sure the comfort represented by this legislation is 
understood as quickly as possible.
  Mr. LEVIN. Mr. President, we are all keenly aware of the demands that 
we place on our troops, the circumstances in which they must live and 
work, and the unique sacrifices that they make to serve our country. 
Filing tax returns is a duty we all must bear to support our nation, 
but it is particularly difficult for service members overseas, who face 
this burden thousands of miles from home and without the resources and 
assistance available to the rest of us. When those troops are placed in 
harms' way, the burden becomes immeasurably greater.
  Earlier this year, Senator Coverdell and I introduced S. 767, the 
Uniformed Services Filing Fairness Act of 1999. This bill would have 
extended by two months the date by which members of the uniformed 
services on duty abroad must file their Federal income tax returns. 
Current Treasury regulations provide for an automatic two month 
extension for U.S. citizens and residents on military duty outside of 
the United States. S. 767 would have codified this regulation into law, 
thereby ensuring that members of the military would not be subject to 
fines and penalties when they avail themselves of this relief.
  This week, the President addressed the same problem by issuing an 
executive order designating the Kosovo area of operations as a ``combat 
zone'' for the purpose of tax relief benefits. This designation will 
provide the following benefits:
  The deadline for filing and paying taxes will be extended;
  Military pay for months served in the combat zone will be exempt from 
income taxes; and
  Telephone calls out of the combat zone will be exempt from the 
telephone excise tax.
  Today, the Senate will pass and send to the President a House bill 
that is a companion measure to bill that Senator Coverdell and I 
introduced earlier this year. This bill shows Congress' support for the 
President's decision by codifying this executive order into law. In 
addition, the bill extends the area covered by the exemption to include 
not only aircrews flying missions into the combat zone, but also 
members of the armed forces supporting those operations in the area of 
the Federal Republic of Yugoslavia (Serbia/Montenegro), Albania, the 
Adriatic Sea, and the northern Ionian Sea. I think we all know the 
dangers and hardships that our troops in these areas are facing on a 
daily basis, and want to support them in any way we can.
  I am pleased that Congress, by enacting this bill, will join the 
President in showing support for our men and women in combat. I urge my 
colleagues to join me in supporting the enactment of this legislation.
  Mr. COVERDELL. Mr. President, I have been joined by the distinguished 
Senator from Kansas. I yield up to 10 minutes to the Senator from 
Kansas.
  Mr. BROWNBACK. I thank my colleague from Georgia for recognizing me 
and for bringing this bill forward.
  It was 2 weeks ago yesterday that I was at McConnell airbase in 
Wichita, KS, meeting with troops that afternoon heading out to run 
refueling missions and other activities in support of the Kosovo 
operation. They were in their working uniforms with a number of spouses 
and some children present. They were determined and ready to go. They 
said, ``This is our job,'' and they were saluting and saying they were 
off to do it even though they had questions: What is the objective? How 
will we get this done? How long will it last? We did not have good 
answers for them, but I said we would press for those answers.
  In speaking with a couple of the spouses afterwards, they noted their 
husbands had been deployed more than 200 days last year and they were 
having difficulty with that length of time of deployment. Also, they 
said: We love being part of the military, we want to do our job, but we 
feel we are being hamstrung by some of the things required of us.
  They don't believe some of the pay is quite enough, and I don't think 
it is enough for them.
  What I see in this bill of Senator Coverdell is a statement to some 
of the people at McConnell airbase, and others throughout Kansas who 
are serving in the military, that we want to help and do what we can in 
tough situations because you are going into the toughest situation that 
a nation could possibly send you. You are going in to face a hostile 
enemy, putting your lives on the line, your blood on the line. We are 
asking you to do it and you are doing it. The least we can do--God 
bless you, we want to help any way we can--is to do something to help.
  This 2-month extension for the due date for filing a tax return for 
any member of a uniformed service on a

[[Page S3760]]

tour of duty outside the United States for a period including the 
normal due date for such filing is a small statement. It is a small 
act, but it is a good act. It is an important act and an important 
statement for us to tell those people in uniform and their families 
that we do care, we do hear you, and we want to try to respond in any 
way we possibly can.
  We need to do a lot more. We need to up the pay to people in the 
military. We need to be questioning all the places we are sending our 
military around the world, how many times we are deploying them. We 
need to upgrade the military's hardware. I think that is important. One 
thing we recently did for the Nation's defense was to pass on the 
national missile defense bill. We need to do that.
  I noted to those at McConnell airbase and those attending the nine 
townhall meetings I had across Kansas last week a chart showing the 
percentage of the Federal budget going to military defense spending. 
About 17 percent of our budget is now going to military defense 
spending. In 1962--not all that long ago--it was nearly 50 percent 
going into our military budget.
  I noted that the amount we invest in the military--which does the 
very basic thing we are called on to do, which is to provide for the 
common defense--is going to need to go up if we are going to continue 
the far-flung operations that the United States is involved in around 
the world. We cannot maintain this pace in this many places on this 
budget.

  That is all they are asking. They are saying: I will put my life on 
the line, I will subject my family to this, I believe in the United 
States, and I believe in our cause, but, gosh, can't you help us out a 
little bit? Can't you make sure that people aren't on food stamps? 
Can't you address some of these issues? And we should.
  This is a bill to help some of those people. Some Members may have 
conflicting opinions on our involvement in Kosovo, but we can all agree 
that our service men and women should not be penalized for their 
service to our country. We owe them a debt of gratitude for risking 
their lives to represent our country. Our soldiers defend the liberties 
we hold dear, and we should not be arbitrarily penalizing them in our 
Tax Code for their work to protect our country.
  With that, I say to my colleague from Georgia I am very appreciative 
of the bill the Senator has put forward, of the effort to recognize the 
needs of our people in uniform. I support wholeheartedly this bill and 
say God bless to our soldiers who are in uniform and in harm's way 
today.
  I yield the floor.
  Mr. COVERDELL. Mr. President, I thank the Senator from Kansas for his 
support and for his observations of his visit with the troops about to 
depart. That is always an emotional time.
  I think it is worthy to note that of every discussion--and there has 
been considerable debate about this operation--one thing for which 
there is no debate is the loyalty, the dedication, and the precision 
with which these troops have exercised what their Government told them 
to do. That loyalty and that desire to do it, do it well, and do it 
right, cannot go unnoticed by anybody who is in their presence. I am 
glad the Senator referred to that particular incident.
  How much time remains on our side?
  The PRESIDING OFFICER. The Senator has 12\1/2\ minutes.
  Mr. COVERDELL. I will not need the 12\1/2\ minutes. I do want to 
reiterate that this legislation does three very specific things to 
bring comfort to our troops in the combat zone. It exempts all U.S. 
troops serving in the Yugoslavian theater of operations from being 
taxed on their hazardous duty pay. They will not be taxed on that. 
Hopefully, that will help them deal with the extra costs related to 
performing this duty.
  No. 2, it will grant a 180-day filing extension for their 1998 income 
tax return, and the 180 days begins on the day they leave the combat 
zone.
  Third, it exempts our troops from the 3 percent excise tax levied on 
long-distance telephone calls.
  We will notify the Pentagon, as I said, later this afternoon, and 
hope they will assist us in making sure the troops in the operation 
theaters are aware of this so it can help bring some comfort. I know 
all of us in America understand the confusion that surrounds tax day. I 
have been on the phone about five times. So, I hope mitigating that 
pressure will be of help and make it a little easier for them as they 
perform the missions they have been assigned by the United States of 
America.
  I yield the floor.
  The PRESIDING OFFICER. Who yields time?
  Mr. COVERDELL. Mr. President, I ask unanimous consent that all time 
be yielded back with respect to S. 767.
  The PRESIDING OFFICER. Is there objection?
  Mr. BAUCUS. Mr. President, how much time is allocated on this side?
  The PRESIDING OFFICER. There remains 30 minutes.
  Mr. BAUCUS. Is the Senator asking that all time is yielded?
  Mr. COVERDELL. It was my understanding all time was to be yielded on 
the measure. I am sorry. I yield back all of our time.
  Mr. President, it is my understanding the House bill will arrive at 
approximately 4:15. A rollcall vote will occur on passage of this bill 
as soon as it arrives from the House.

  In the meantime, following the statement of the Senator, I ask 
unanimous consent there be a period of morning business with Members 
limited to 10 minutes each, with the exception of Senator Roth for up 
to 30 minutes and Senator Grams for up to an hour.
  Mr. BAUCUS. Parliamentary inquiry. When the Senator refers to ``this 
bill,'' is he referring to the House-passed bill?
  Mr. COVERDELL. Yes.
  The PRESIDING OFFICER. Is there objection?
  Mrs. BOXER. Reserving the right to object.
  The PRESIDING OFFICER. The Senator from California.
  Mrs. BOXER. Mr. President, I just wanted to make a brief statement in 
support of this move to help our service men and women and to point out 
that I tried to amend the Senate bill with a very straightforward sense 
of the Senate which just said we should ask the Pentagon to ensure, if 
there are parents of minor children called up and both are sent to 
combat, that they do everything in their power to ensure that one of 
those parents is not actually in combat.
  Unfortunately, as the Senator from Georgia said, there was objection 
for some reason to this approach. I just want to say again, I do not 
understand that. We passed something very similar during the gulf war. 
We care about the tax burden of our men and women in uniform, and we 
should. How about caring about their families, their children?
  Many of us have seen ``Saving Private Ryan,'' or know the story. I 
cannot understand why we could not simply amend the Senate version of 
this bill with this very simple sense of the Senate asking the Pentagon 
to do what they could to ensure a mother and father were not sent into 
combat leaving behind a small child.
  Having said that, I hope I can bring that up in the future as a 
freestanding measure, and I certainly do support the House bill that is 
coming over to give our people relief. They deserve it and they also 
deserve protection for their children, should a husband and wife be 
called into combat.
  Mr. President, I will not object to us yielding back the time.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. BAUCUS addressed the Chair.
  The PRESIDING OFFICER. The Senator from Montana.
  Mr. BAUCUS. Mr. President, I am very pleased the House Ways and Means 
Committee began to act on this issue by passing this bill and the bill 
passing the full House will come over to the Senate, which we can also 
then pass. Clearly, our service men and women, particularly those in 
harm's way, deserve all the support we can possibly give them. The 
provision we are now discussing which releases them of income tax 
liability during the time they are serving in a zone of danger, 
particularly in Kosovo, is the very least we can do.
  Similarly, the provisions in the bill coming over from the House 
which provide for all men and women on active duty wherever they may be 
serving overseas to get the 60-day extension, and also have penalties 
potentially against them for late filing waived--that, too, is very 
important. Mr. President, I think it is the very least we can do at 
this point.

[[Page S3761]]

  In addition to our service men and women, there are also other 
Americans in harm's way in the war zone, performing above and beyond 
the call of duty. I am talking about employees of the State Department. 
I am talking about other groups of people over there, serving, doing 
their utmost, who are in equally dangerous situations. At some future 
point I believe they also deserve due recognition in the same way as 
our military. We support our Americans. We deeply support our fellow 
Americans serving in the Balkans. I am very pleased the House has 
acted, and the Senate will be acting very soon.
  I might say, I am also pleased the House approached this matter in 
the proper way. That is, they brought it up in the House tax-writing 
committee, the Ways and Means Committee, where the bill was discussed. 
It was marked up in the committee and then went to the House floor. 
That is the preferable way of doing business.

  In this case, there was an attempt for a bill to be filed at the desk 
and then brought up directly on the floor on this issue, not going 
through the Senate tax-writing committee, the Senate Finance Committee. 
I hope we go back to the usual course of business as a general rule 
where tax bills go through the Finance Committee before they are 
brought to the floor. I say that because the legislation will be much 
better. It will be thought through. There is a chance to correct 
mistakes. There is a chance to add on measures that should be added on 
or subtract out measures that should be subtracted out.
  Having said that, obviously time is of the essence in this case, and 
the House Ways and Means Committee has acted; that is, the authorizing 
committee in the other body did act so we did have at least that 
assurance this has been looked at with some considerable examination.
  I will be very pleased when the House bill comes over. We will be 
able to vote on it. That will probably be within the hour. As I said, I 
hope after we do that we can give also the same kind of thought to 
other Americans who are also serving in the zone who are also 
sacrificing to a great degree in serving our country.
  I yield the remainder of our time.
  (Pursuant to the order of April 14, 1999, the bill (S. 767) was 
returned to the Calendar.)

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