[Congressional Record Volume 147, Number 122 (Wednesday, September 19, 2001)]
[Senate]
[Pages S9506-S9507]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. ALLEN (for himself, Mr. Warner, Mr. Campbell, and Mr. 
        Craig):
  S. 1433. A bill to amend the Internal Revenue Code of 1986 to provide 
tax relief for victims of the terrorist attacks against the United 
States on September 11, 2001; to the Committee on Finance.
  Mr. ALLEN. Mr. President, I rise today to talk about a bill I 
introduced this morning. The first cosponsor of this measure is my good 
friend and colleague, Senator John Warner of Virginia. The bill is the 
Victims of Terrorism Relief Act of 2001, which would modify current tax 
policy to provide needed relief and compassion to the victims of the 
terrorist attacks that occurred on September 11, 2001.
  As you well know--and all Americans know--on September 11, 2001, the 
world was stunned by what may prove to be the most vile, most 
horrifying act of hate and terror against a nation's people.
  While many questions will remain unanswered in the weeks and months 
to come, what is immediately clear is that the conduct of war, as 
previously waged by the enemies of the United States, has been suddenly 
altered. That conduct of war is so different than what we ever imagined 
as a civilized Nation. This new war does not differentiate between a 
military and a civilian target. The enemies of liberty and democracy do 
not distinguish between a trained soldier and an unarmed child. The 
Federal Government, and the Congress, have previously recognized, and 
rightfully so, the special circumstances of some of our citizens who 
voluntarily serve their country in potentially dangerous regions 
outside of the United States.
  Current law provides a reduction in the death tax liability of the 
estates of members of the Armed Forces who are killed while serving in 
a combat zone or die as a result of injuries suffered while serving in 
a combat zone.
  In addition, current law provides an exemption from the Federal 
income tax, on the income earned in the year of death, by Federal 
military and civilian employees who die during, or as a result of, 
injuries suffered in a military or terrorist attack outside of the 
United States.
  These brave and honorable individuals put their lives on the line for 
our country. It is only right that we recognize their extraordinary 
dedication and their sacrifice.
  Unfortunately, the advent of a new type of warfare means many 
provisions in our Tax Code, which were designed to provide tax relief 
to Federal military and civilian employees killed in service to their 
country, are now inadequate in the face of new threats. These benefits 
do not extend such relief to civilians who may be likewise killed in 
enemy attacks now indiscriminately aimed at civilian targets, as well 
as military installations.
  As we recognize that our world and the rules of war, as the 
terrorists use them, have changed, we, too, must change the tax 
benefits of those citizens and their families who are adversely 
affected.
  To address these inadequacies in the current Tax Code, I introduced 
the Victims of Terrorism Tax Relief Act of 2001 which would extend and 
expand current law benefits to any individual who died as a result of 
the terrorist attacks occurring on September 11, 2001.
  Specifically, my legislation eliminates all Federal death taxes on 
the estates of any individual killed during, or as a result of injuries 
derived from, the September 11, 2001 terrorist attacks.
  It exempts from Federal income tax, in the year of death, any income 
earned by any individual killed during, or who died as a result of 
injuries resulting from, the September 11, 2001, terrorist attacks.
  It ensures that all our citizens--law enforcement, firefighters, 
rescue and relief workers, nurses, doctors, anyone--are recognized for 
their heroism and their sacrifice.
  On September 13, 2001, the House of Representatives unanimously 
passed H.R. 2884, demonstrating overwhelming bipartisan support for 
extending current law tax benefits to civilian victims of the September 
11, 2001, terrorist attacks. While I do not believe the legislation 
went far enough, in that it does not provide for full relief from 
Federal death taxes, it takes a very strong stand, sending a message of 
unity from Washington.
  This is a recognition that all of those who lost their lives, in a 
violent act of war on the United States, on September 11, 2001, whether 
they are military personnel, civilian personnel, rescue workers, 
firefighters, police, nurses, citizens trying to help, citizens in 
their offices, children taking a plane trip, passengers on a plane, 
pilots of planes, all of these individuals have left us a legacy. 
Indeed, it is an enduring legacy of purpose, a legacy of compassion, a 
love of liberty, and a quest for justice.

  We must honor all of those who lost their lives in this vile act of 
war on the United States and never forget; for their memory has truly 
unified a very diverse nation and has made it an even stronger and more 
respectful nation. We will honor and always remember them.
  The U.S. Senate must rise to the occasion and stand in solidarity 
with the House of Representatives. The Senate must promptly pass this 
important legislation. It matters to those victims and their families.
  I have personally talked to many, too many, of those family members--
brothers, children, and wives--who have lost loved ones because of this 
dastardly terrorist attack. They are in a time of great grief. That 
grief will continue until the day they pass from this earth and reunite 
with their loved ones in heaven.
  In this new war against the United States, the enemy is making all 
Americans, whether they are military or civilian, young or old, 
parents, children or spouses, targets for their attacks.
  In this effort, the Federal Government must adapt its death benefits 
to take into consideration this sad truth: that the traditional line 
between combatants and noncombatants is not always respected. I have 
told those folks that their husband or their brother or their father is 
a hero and that they were killed because they were here in America. 
These grieving families need our assistance as much as do the families 
of our brave military personnel.
  What they do not need in this time of mourning is the added worry of 
filling out tax forms. It is going to be hard enough for them to get by 
emotionally, much less financially.
  For the Senate to act promptly on this legislation, would be to send 
a positive, reassuring message to these families: you are not going to 
have to worry about any of these tax forms, or how to afford new taxes 
in a time of grief--you are not alone in this. We must let them know we 
appreciate them as the heroes they are. We will always remember them, 
their acts of martyrdom and heroism unifying this Nation like I have 
never seen it unified in all of our history.
  I hope my Senate colleagues, as they all start coming back after the 
holy days, will rise in applause, and help to ensure that our tax 
benefit laws reflect the realities of the new war against civilians, 
allowing them the same sort of benefits that we provide for our brave 
military personnel.

[[Page S9507]]

  I ask unanimous consent that the text of my legislation introduced 
earlier in the day be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1433

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Victims of Terrorism Relief 
     Act of 2001''.

     SEC. 2. INCOME TAXES OF VICTIMS OF TERRORIST ATTACKS.

       (a) In General.--Section 692 of the Internal Revenue Code 
     of 1986 (relating to income taxes of members of Armed Forces 
     on death) is amended by adding at the end the following new 
     subsection:
       ``(d) Certain Individuals Dying as a Result of September 
     11, 2001, Terrorist Attacks.--
       ``(1) In general.--In the case of any individual who dies 
     as a result of wounds or injury incurred as a result of the 
     terrorist attacks against the United States on September 11, 
     2001, any tax imposed by this subtitle shall not apply--
       ``(A) with respect to the taxable year in which falls the 
     date of such individual's death, and
       ``(B) with respect to any prior taxable year in the period 
     beginning with the last taxable year ending before the 
     taxable year in which the wounds or injury were incurred.
       ``(2) Exception.--Paragraph (1) shall not apply to an 
     individual whom the Secretary determines was a perpetrator of 
     any such terrorist attack.''.
       (b) Conforming and Clerical Amendments.--
       (1) The heading of section 692 of such Code is amended to 
     read as follows:

     ``SEC. 692. INCOME TAXES OF MEMBERS OF ARMED FORCES ON DEATH 
                   AND VICTIMS OF CERTAIN TERRORIST ATTACKS.''.

       (2) The item relating to section 692 in the table of 
     sections for part II of subchapter J of chapter 1 of such 
     Code is amended to read as follows:

``Sec. 692. Income taxes of members of Armed Forces on death and 
              victims of certain terrorist attacks.''.
       (3) Section 5(b)(1) of such Code is amended by inserting 
     ``and victims of certain terrorist attacks'' after ``on 
     death''.
       (4) Section 6013(f)(2)(B) of such Code is amended by 
     inserting ``and victims of certain terrorist attacks'' after 
     ``on death''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years ending on or after September 11, 
     2001.

     SEC. 3. RELIEF FROM ESTATE TAX.

       (a) In General.--Section 2201 of the Internal Revenue Code 
     of 1986 is amended--
       (1) in the first sentence by inserting ``(a) In General.--
     '' before ``The additional estate tax''; and
       (2) by adding at the end the following:
       ``(b) Victims of Certain Terrorist Attacks.--No tax imposed 
     under this subtitle shall apply to the transfer of the 
     taxable estate of any individual who dies as a result of 
     wounds or injury incurred as a result of the terrorist 
     attacks against the United States on September 11, 2001. The 
     preceding sentence shall not apply with respect to any 
     individual whom the Secretary determines was a perpetrator of 
     any such terrorist attack.''.
       (b) Clerical Amendments.--
       (1) The heading of section 2201 of such Code is amended to 
     read as follows:

     ``SEC. 2201. COMBAT ZONE-RELATED DEATHS OF MEMBERS OF THE 
                   ARMED FORCES AND DEATHS OF VICTIMS OF CERTAIN 
                   TERRORIST ATTACKS.''.

       (2) The item relating to section 2201 in the table of 
     sections for subchapter C of chapter 11 of such Code is 
     amended to read as follows:

``Sec. 2201. Combat zone-related deaths of members of the Armed Forces 
              and deaths of victims of certain terrorist attacks.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to estates of decedents dying on or after 
     September 11, 2001.
                                 ______