[Congressional Record Volume 147, Number 49 (Thursday, April 5, 2001)]
[Extensions of Remarks]
[Page E564]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              ASBESTOS SETTLEMENT FUND RELIEF LEGISLATION

                                 ______
                                 

                            HON. MAC COLLINS

                               of georgia

                    in the house of representatives

                        Wednesday, April 4, 2001

  Mr. COLLINS. Mr. Speaker, today I rise, along with my colleague from 
Georgia (Rep. John Lewis) to introduce legislation that would help 
companies and victims that are struggling with asbestos liability. 
Distinct and separate from the controversy associated with asbestos 
liability reform, our tax bill has broad and deep bipartisan support. 
Approximately 70 of our colleagues have agreed to be original 
cosponsors of the bill.
  The bill provides fairness for victims and defendants alike. Many 
companies that are paying victims for their injuries cannot deduct 
these costs because the costs exceed their taxable income and these 
costs can only be carried back to a limited number of tax years in 
which their expenses already exceed their income. Many asbestos victims 
rely on settlement funds for compensation. Those settlement funds are 
currently taxed at 39.6%, which increases the costs of financing the 
funds and decreases the amount of money available to victims.
  Our bill, would (1) exempt from federal tax settlement funds 
established for the purpose of paying asbestos victims, and (2) allow 
companies to carry back deductions for the payment of asbestos claims 
to the tax years giving rise to the current asbestos liabilities.
  Our bill will ensure that all companies that pay asbestos claims are 
allowed to deduct those costs and that all of the money in asbestos 
settlement funds will be paid only to asbestos victims.

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