[Congressional Record Volume 148, Number 71 (Tuesday, June 4, 2002)]
[House]
[Pages H3089-H3092]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                              {time}  1515
             HOLOCAUST RESTITUTION TAX FAIRNESS ACT OF 2002

  Mr. SHAW. Mr. Speaker, I move to suspend the rules and pass the bill 
(H.R. 4823) to repeal the sunset of the Economic Growth and Tax Relief 
Reconciliation Act of 2001 with respect to the exclusion from Federal 
income tax for restitution received by victims of the Nazi Regime.
  The Clerk read as follows:

                               H.R. 4823

       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 ``Holocaust Restitution Tax 
     Fairness Act of 2002''.

     SEC. 2. REPEAL OF APPLICABILITY OF SUNSET OF THE ECONOMIC 
                   GROWTH AND TAX RELIEF RECONCILIATION ACT OF 
                   2001 WITH RESPECT TO EXCLUSION FROM FEDERAL 
                   INCOME TAX FOR RESTITUTION RECEIVED BY VICTIMS 
                   OF NAZI REGIME.

       Section 901 of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 is amended by adding at the end 
     the following new subsection:
       ``(c) Exception.--Subsection (a) shall not apply to section 
     803 (relating to no federal income tax on restitution 
     received by victims of the Nazi regime or their heirs or 
     estates).''.

  The SPEAKER pro tempore (Mr. Culberson). Pursuant to the rule, the 
gentleman from Florida (Mr. Shaw) and the gentleman from Maryland (Mr. 
Cardin) each will control 20 minutes.
  The Chair recognizes the gentleman from Florida (Mr. Shaw).
  Mr. SHAW. Mr. Speaker, I yield myself such time as I may consume.
  (Mr. SHAW asked and was given permission to revise and extend his 
remarks and include extraneous material.)
  Mr. SHAW. Mr. Speaker, I am honored to be the sponsor of this 
important piece of legislation, H.R. 4823, the Holocaust Restitution 
Tax Fairness Act. It exempts Holocaust survivors from taxation any 
restitution claims they received for the crimes committed against them 
by Nazi Germany.
  The bill permanently extends a provision of The Economic Growth and 
Tax Reconciliation Act that makes such claims tax-free. Like the rest 
of the tax cut signed into law by President Bush last year, this 
provision sunsets in 2010. Today we are taking action to provide that 
for as long as the victims and their heirs receive Holocaust-related 
claims, they will be tax-free.
  In recent years settlement agreements worth billions of dollars for 
Holocaust survivors have been reached. Although no amount of money 
could ever compensate the victims of the Holocaust for the crimes 
committed against them, it would be wrong for the United States Tax 
Code to treat these modest settlements as some sort of financial 
windfall. Current estimates are that there will be 88,000 Holocaust 
survivors in 2010 when the tax cuts sunset, many of whom reside in my 
South Florida district. Congress should be prepared to give these 
survivors the security of at least knowing that their settlement claims 
will not be subject to the hands of the Internal Revenue Service.
  Mr. Speaker, it is as simple as this: When something is stolen from 
you,

[[Page H3090]]

you should not be taxed when it is returned. The idea that Uncle Sam 
might take a bite out of these claims because of the tax cut sunset is 
real appalling. This bill is supported by the Jewish Council for Public 
Affairs, the Conference of Jewish Material Claims Against Germany, the 
Jewish Community Relations Council of Greater Miami, the American 
Jewish Committee, the American Gathering/Federation of Jewish Holocaust 
Survivors, and the International Commission on the Holocaust Era 
Insurance Claims.
  I submit these letters of support from the organizations that I have 
mentioned.
  Mr. Speaker, this provision must be made permanent, not because it 
will simplify the tax code, nor will it stimulate our recovering 
economy, nor do we need to do this because it will directly affect 
millions of Americans' pocketbooks. This needs to be done because it is 
right.
  With that in mind, I urge my colleagues to send a strong message of 
support to the victims of the Holocaust and their families by voting 
for this bill.
                                         Jewish Council for Public


                                                      Affairs,

                                           New York, May 31, 2002.
     Hon. E. Clay Shaw,
     Rayburn House Office Building, Washington, DC.
       Dear Congressman Shaw: On behalf of the Jewish Council for 
     Public Affairs, I am writing to thank you for introducing 
     legislation to repeal the sunset provisions in the last tax 
     package that provides exclusion from federal income tax for 
     restitution payments received by victims of the Nazi regime 
     (H.R. 4823). As you know, the Jewish Council for Public 
     Affairs is the public affairs arm of the organized American 
     Jewish community and serves as the national coordinating body 
     for the 13 national and 122 local agencies comprising the 
     field of Jewish community relations.
       Holocaust survivors have been receiving various types of 
     compensation payments from Germany and Austria since the 
     1950s. Although the Internal Revenue Service had issued 
     several rulings exempting certain Holocaust compensation 
     payments from taxation, (such as Rev. Rul. 56-518 and Rev. 
     Rul. 69-212), until last year the Congress had never passed 
     legislation that would provide broad tax exemption for all 
     Holocaust-related payments.
       Recent efforts to secure compensation payments for former 
     slave and forced laborers who suffered under the Nazi regime, 
     and to obtain restitution of stolen Holocaust-era assets, 
     have and will continue to result in survivors receiving 
     additional payments over the next several years. In light of 
     these developments, there is a need to ensure forever that 
     all compensation and restitution payments received by 
     Holocaust survivors and/or their heirs are not subject to 
     federal taxation.
       No amount of money can ever compensate Holocaust survivors 
     for the horrors they endured. However, this legislation would 
     at least enable survivors to benefit fully from the token 
     compensation and restitution payments they will receive in 
     the future.
           Sincerely,
                                                 Hannah Rosenthal,
     Executive Director.
                                  ____



                                The American Jewish Committee,

                                     Washington, DC, May 28, 2002.
     U.S. House of Representatives,
     Washington, DC.
       Dear Representative: The American Jewish Committee, the 
     nation's premier human relations organization, with some 
     110,000 members and supporters and offices in 32 cities 
     nationwide, urges you to support H.R. 4823, the Holocaust 
     Restitution Tax Fairness Act of 2002, introduced by 
     Representative Clay Shaw.
       The Holocaust Restitution Tax Fairness Act would remove 
     sunset provisions currently applicable to legislation enacted 
     last year that grants tax relief to Holocaust survivors. With 
     the passage of H.R. 1836, the Economic Growth and Tax Relief 
     Act, the Congress decided last year that Holocaust 
     restitution payments should not be a part of a beneficiary's 
     taxable income. Between 1933 and 1945, Nazi Germany 
     systematically stripped European Jews of their property. 
     Given the complications resulting from the Jewish people's 
     displacement following World War II, compensatory payments to 
     Holocaust survivors have been slow in coming. In recent years 
     there have been important developments in this area, but 
     there are still may survivors who have not received 
     restitution.
       Because the tax relief offered to Holocaust survivors was 
     enacted as part of H.R. 1836, it is subject to a sunset 
     provision. Because of this, property and monetary 
     compensation received by Holocaust survivors after 2001 will 
     no longer be tax-free. The Holocaust Restitution Tax Fairness 
     Act of 2002 would remove the sunset clause from H.R. 1836 
     insofar as it is applicable to Holocaust compensation 
     payments. Instead of arbitrarily ending tax relief for 
     Holocaust survivors. H.R. 4823 will continue the status quo 
     so that this compensation will continue to be tax-free. 
     Additionally, H.R. 4823 ensures that Holocaust survivors who 
     receive property through restitution will not have to pay 
     capital gains taxes should they immediately sell this newly 
     received capital.
       We strongly urge you to support the Holocaust Restitution 
     Tax Fairness Act. Passage of this bill will demonstrate 
     Congress' commitment to preserving principles of just 
     compensation for all Holocaust survivors, so that all 
     families will receive the modicum of justice that these tax-
     free payments reflected, no matter how long it may take. 
     Thank you for considering our views.
           Sincerely,
                                                Richard T. Foltin,
     Legislative Director and Counsel.
                                  ____

         The International Commission on Holocaust Era Insurance 
           Claims,
                                     Washington, DC, May 31, 2002.
     Hon. E. Clay Shaw,
     United States House of Representatives, Washington, DC.
       Dear Representative Shaw: As Chairman of the International 
     Commission on Holocaust Era Insurance Claims (ICHEIC), I 
     would like to voice my support for H.R. 4823.
       One of the greatest tragedies of history is that so many 
     victims of the Holocaust and their families were denied the 
     justice they deserved.
       One area where the U.S. Government can attempt to ease the 
     burdens felt by Holocaust survivors and their families is to 
     permanently remove the tax burden of restitution payments. 
     This is not justice, nor should it be considered as such. It 
     is simply the least that can be done to ease some of the 
     ongoing suffering that still remains from the Holocaust.
       I fully support your efforts to permanently make Holocaust 
     restitution payments tax-exempt. It is impossible for anyone 
     to say at this point if some of the claims funds or 
     humanitarian funds will still be functioning after December 
     2010. But in the event that they are, why should we allow an 
     issue of taxation to tarnish the may efforts that are being 
     made currently to bring final resolution to this matter?
           Sincerely,
                                          Lawrence S. Eagleburger,
     Chairman.
                                  ____

         American Gathering/Federation of Jewish Holocaust 
           Survivors,
                                       New York, NY, May 31, 2002.
     Representative Clay Shaw,
     Committee on Ways and Means, House of Representatives, 
         Washington, DC.
       Dear Representative Shaw: The United States Congress 
     created an important provision for Holocaust survivors in 
     this country receiving compensation and restitution payments 
     from Germany and other countries when it passed legislation 
     last year exempting such payments from taxation.
       I ask you now to help ensure that this legislation becomes 
     permanent. Exempting these payments from taxes sends a strong 
     statement that the United States government believes that 
     victims of Nazism are entitled to the full amount paid to 
     them. As Chairman of the American Gathering of Jewish 
     Holocaust Survivors, I can tell you that these payments are 
     an acknowledgment of the indescribable suffering endured by 
     Jews under the Nazis, and as such should not be treated as 
     normal income.
       As you are aware, the legislation enacted last year expires 
     in 2010. There are thousands of survivors in the U.S. who 
     will continue to receive payments after that date. It is 
     important that this taxation exemption continue as long as 
     there are Holocaust survivors alive and receiving 
     compensation and restitution.
           Sincerely,
     Roman Kent.
                                  ____



                           Jewish Community Relations Council,

                                          Miami, FL, May 31, 2002.
     Hon. E. Clay Shaw,
     U.S. House of Representatives,
     Washington, DC.
       Dear Congressman Shaw: Thank you for sponsoring H.R. 4823, 
     a bill that will make permanent the exclusion from taxes of 
     proceeds from Holocaust restitution payments. As you know, 
     South Florida is home to one of the largest Holocaust 
     survivor communities in the United States and the Miami 
     Jewish community has actively advocated on their behalf for 
     many years.
       We know that no amount of money can ever compensate 
     Holocaust survivors for the horrors they endured. However, 
     your tax-exempt legislation would at least enable survivors 
     to benefit fully from the token compensation and restitution 
     payments they will receive.
       We support your efforts to permanently exempt restitution 
     payments received by victims of the Nazi regime from federal 
     income tax.
           Sincerely,
     Samuel J. Dubbin,
       Chairman.
     Judy Gilbert-Gould,
       Director.
                                  ____

         Conference on Jewish Material Claims Against Germany, 
           Inc.,
                                       New York, NY, May 28, 2002.
     Representative Clay Shaw,
     Committee on Ways and Means, House of Representatives, 
         Congress of the United States, Washington, DC.
       Dear Representative Shaw: The Claims Conference was founded 
     in 1952 by twenty

[[Page H3091]]

     two Jewish organizations and since that date has both 
     negotiated Holocaust restitution and compensation agreements 
     on behalf of the Jewish people and has played a pivotal role 
     in the distribution of funds to individuals and allocating 
     funds to institutions that assist Nazi victims.
       The Claims Conference actively supported section 803 of the 
     Economic Growth and Tax Relief Reconciliation Act of 2001 as 
     this provision is of great benefit to Holocaust survivors. 
     Consequently, the Claims Conference would like to express its 
     support for section 1 of H.R. 4823 that repeals the sunset 
     provision of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 with respect to exclusion from 
     Federal Income Tax for restitution received by victims of the 
     Nazi regime.
       As you are aware, the provision enacted last year expires 
     in 2010. Thousands of holocaust survivors in the United 
     States currently receive pensions related to their 
     persecution under the Nazi regime and these survivors will 
     continue to receive such pensions as long as they are alive, 
     which we anticipate in the case of some survivors will be 
     beyond 2010.
       It is important for thousands of holocaust survivors and 
     their families that the sunset clause be repealed in order 
     that the benefit to Holocaust survivors of this legislation 
     can continue during the lifetime of survivors.
           Sincerely yours,
     Israel Singer,
       President.
     Gideon Taylor,
       Executive Vice President.

  Mr. Speaker, I reserve the balance of my time.
  Mr. CARDIN. Mr. Speaker, I yield myself such time as I may consume.
  (Mr. CARDIN asked and was given permission to revise and extend his 
remarks.)
  Mr. CARDIN. Mr. Speaker, first, let me thank the gentleman from 
Florida (Mr. Shaw) for bringing forward this bill.
  I strongly support H.R. 4823, the Holocaust Restitution Tax Fairness 
Act of 2002. The gentleman from Florida (Mr. Shaw) has explained the 
purpose of this legislation and I just want to underscore on the 
importance of making sure that the funds that the Holocaust survivors 
receive in restitution are not subject to taxes here in the United 
States.
  We know that the victims and their families have already paid a 
terrible price. No amount of money can compensate for their suffering, 
but Congress can guarantee that the survivors can keep the full amount 
of the money that they receive in partial restitution. Many families 
are depending upon those funds and they do not know now that 10 years 
from now what Congress will do as far as extending the tax law. It is 
important that we clarify it now, and I strongly support this 
legislation.
  As a member of the Commission on Security and Cooperation in Europe, 
commonly referred to as the Helsinki Commission, I have been fortunate 
to help a number of my constituents reclaim their family property that 
has been seized by Nazi or communist regimes during and immediately 
after World War II.
  As we continue to press Europe and former Soviet Republic governments 
to enact nondiscriminatory property restitution laws, Congress should 
take this step to ensure that the United States Government does not 
benefit from the restitution claims.
  The Conference on Jewish Material Claims Against Germany is 
overseeing the distribution of an estimated 60,000 restitution payments 
to individuals residing in the United States. Mr. Speaker, I might add 
that there are other governments and institutions that are now 
participating in restitution claims for the victims of Nazi Germany.
  Mr. Speaker, this bill has a nominal fiscal impact on government 
revenues, and I urge my colleagues to support the legislation.
  Mr. Speaker, I yield such time as he may consume to the gentleman 
from Michigan (Mr. Levin) who is a distinguished member of the 
Committee on Ways and Means.
  Mr. LEVIN. Mr. Speaker, I thank the gentleman for yielding me time, 
my colleague and good friend.
  In a real sense there cannot be restitution, but this is a small way 
that a small part can be restored where people, survivors or their 
heirs lost assets, they were either expropriated or stolen or in other 
ways lost. There is argument over making permanent some provisions of 
the tax bill that was passed earlier in this session. I trust there is 
no dispute about making permanent this provision. It is a small step 
that we can take to bring a small measure of justice when full justice 
cannot begin to be restored. So I would very much rise in support of 
this proposal and urge its unanimous support.
  Mr. SHAW. Mr. Speaker, I yield two minutes to the gentleman from 
Virginia (Mr. Cantor).
  Mr. CANTOR. Mr. Speaker, I thank the gentleman from Florida (Mr. 
Shaw) for yielding me time.
  Mr. Speaker, I rise today in support of H.R. 4823, the Holocaust 
Restoration Tax Fairness Act. Mr. Speaker, in recent years settlement 
agreements worth millions of dollars have been reached to compensate 
Holocaust survivors. Many of these survivors who live in the United 
States receive small payments from these restoration agreements. 
Currently, Holocaust victims are exempt from paying income tax on the 
restoration payments they receive. But a provision in the tax code 
sunsets this exemption on January 1, 2011.
  This heroic group of Holocaust survivors is an aging population and 
current estimates show that there will only be 88,000 living Holocaust 
survivors by the year 2011. If we fail to pass this legislation, many 
of the victims who suffered directly at the hands of the Nazis will be 
forced to share up to one-third of their restoration payments with the 
Internal Revenue Service.
  Mr. Speaker, let us pass this legislation and allow the survivors of 
the Holocaust to fully keep what was and is rightfully theirs.
  Mr. GILMAN. Mr. Speaker, I rise today in support of H.R. 4823 and I 
commend the gentleman from Florida, my friend and colleague Congressman 
Shaw, for introducing it. I strongly urge my colleagues to adopt this 
worthy legislation.
  This act will prevent government taxation from incurring on any 
payments of restitution to holocaust survivors after 2010. This is a 
significant beneficial provision for the Economic Growth and Tax Relief 
act. it is imperative that we make this provision permanent. if not, it 
is possible that holocaust survivors could lose one third of their 
restitory income.
  These payments are quite modest to begin with and by 2010 the 
majority of beneficiaries will be elderly members of the population who 
are already in need of economic aid. The loss of one third of their 
compensation would greatly deprive them. These payments are 
compensation for pain and suffering and should be off limits to the 
government. The IRS has no right in profiting from the pain of others 
and therefore, the act before us should be passed.
  We have a moral obligation to help those who suffered at the hands of 
evil regimes during world war two. It is only fair that these 
unfortunate souls be compensated for their pain without government 
taxation. Accordingly, I urge my colleagues to fully support this 
measure.
  Mr. BENTSEN. Mr. Speaker, I rise in strong support of H.R. 4823, 
important legislation that permanently excludes taxable income all 
forms of restitution payments to victims of the Nazi regime.
  This legislation is a small but important step in recognizing the 
suffering that the Holocaust inflicted on millions of families, 
including several who live in my district, the 25th Congressional 
District of Texas. These individuals, in addition to being displaced 
from their homes, families, and communities, also suffered devastating 
economic loss when the Nazi regime pillaged their finances and assets. 
As the appropriate entities have made necessary restitution payments to 
these victims, it is important to protect these funds that the 
recipients have payed dearly for.
  This is the essence of H.R. 4823, which makes permanent the tax 
protection offered in the Economic Growth and Tax Relief Reconciliation 
Act, H.R. 1836, which excluded these assets from taxable income for the 
fiscal year 2001 to 2011 period, and was enacted into law last June. I 
am also pleased to note that H.R. 4823 is similar to legislation I co-
sponsored in the 106th Congress, H.R. 3511, which unfortunately did not 
become law. Today, however, we can rectify that effort and successfully 
pass the current bill, and help compensate the enormous losses suffered 
by victims of the Holocaust.
  For all these reasons, Mr. Speaker, I urge my colleagues to join me 
in support for H.R. 4823.
  Mr. WELLER. Mr. Speaker, I appreciate the opportunity to offer my 
support for H.R. 4823, a bill which repeals the sunset of a provision 
in the Economic Growth and Tax Relief Reconciliation Act of 2001 which 
provides a Federal income tax exclusion for restitution payments 
received by victims of the Nazi Regime.
  During the 106th Congress, Congressman Robert Matsui and I introduced 
a bill, H.R. 1292, which would have excluded from gross income any 
amount received by an individual, or any heir of the individual from 
any person as a result of any moral or legal injustice experienced by 
such individual as a Holocaust

[[Page H3092]]

victim persecuted for racial or religious reasons by Nazi Germany. Many 
of the provisions included in H.R. 1292 were included in the tax bill 
signed by President Bush last year, we are working to make these 
provisions permanent today.
  In August 1998, after many years of effort, Holocaust survivors who 
had assets withheld by Swiss banks or others finally received justice 
through a $1.25 billion settlement. These settlements continue to be 
distributed to Holocaust survivors and their heirs world-wide.
  the settlements return assets to their rightful owners and their 
heirs more than 50 years after they were first entrusted to their care. 
Funds have been established by banks and corporations in France, 
Austria, Italy and Germany to return assets such as bank accounts and 
insurance policies to Holocaust survivors. With the enactment of the 
Economic Growth and Tax Relief Reconciliation Act last year, and with 
H.R. 4823, which we are considering today, we can ensure that any 
payment, from Swiss banks or other similar sources, will not be taxed. 
This is clearly the right thing to do because they are receiving back 
what was always theirs to begin with.
  With the average age of Holocaust survivors at 80, the time left to 
debate these payments is slipping away. Certainly, these payments will 
make life more comfortable for these survivors in their remaining 
years. To tax them on these long overdue payments would simply be 
wrong.
  Mr. Speaker, I encourage my colleagues to support this important 
legislation and I thank you for the opportunity to speak in favor of 
H.R. 4823.

       H.R. 4823--Holocaust Restitution Tax Fairness Act of 2002

       H.R. 4823 will make permanent provisions in the Economic 
     Growth and Tax Relief Reconciliation Act (EGTRRA) that 
     exclude from gross income any restitution payments received 
     by victims of the Nazi Regime or their heirs or estates.
       This bill is supported by Conference of Jewish Material 
     Claims Against Germany (Claims Conference), Jewish Community 
     Relations Council of Greater Miami (JCRC), American Jewish 
     Committee (AJC), American Gathering of Jewish Holocaust 
     Survivors, the Jewish Council for Public Affairs (JCPA), 
     United Jewish Communities (UJC), the Religious Action Center 
     of Reform Judaism (RAC) and International Commission on 
     Holocaust Era Insurance.
       These tax relief provisions expire or ``sunset'' on 
     December 31, 2010. After that any restitution payments could 
     be subject to federal taxation.
       The sunset (i.e. expiration) of the tax provisions in 
     EGTRRA creates significant risk and uncertainty for tax 
     planning and other important personal decisions for victims 
     of the Holocaust and their families.


                   holocaust restitution settlements

       In recent years, settlement agreements worth billions of 
     dollars have been reached to compensate Holocaust survivors. 
     It is unknown what future agreements will occur but U.S. tax 
     law should ensure that any and all future payments be 
     excluded from federal taxation.
       In addition, millions of dollars of restitution payments 
     are made every year to thousands of survivors of the 
     Holocaust in the form of monthly payments. If this tax 
     provision is not made permanent, thousands of Holocaust 
     survivors could lose over one-third of their restitution to 
     the IRS when EGTRRA expires.
       Holocaust survivors are an aging population but current 
     estimates are that there will be 88,000 Jewish Holocaust 
     survivors in 2010 and 37,000 in 2020. A large fraction of 
     these survivors are receiving reparation payments. If this 
     provision is not made permanent, those who suffered at the 
     hands of the Nazis will be forced to share their modest 
     payments with the government.
       Not exempting this income from taxation is tantamount to 
     the federal government ``profiting'' from restitution 
     payments that are compensation for the pain and suffering of 
     Holocaust survivors and their families.


                      International Consideration

       The U.S. provision has served as a model for similar 
     legislation in other countries. Specifically, the Russian 
     government has studied and been influenced by the U.S. 
     legislation when crafting a similar provision exempting 
     Holocaust payments to Russian citizens.

  Mrs. MALONEY of New York. Mr. Speaker, the United States has a long 
tradition of recognizing the importance of tax exemptions for the 
restitution of assets lost during World War II. The tradition began 
with military law 59 in 1947 and was continued by three treaties with 
Germany. While I voted against last year's H.R. 1836, I did support the 
provision exempting restitution payments for Holocaust survivors. That 
provision proves that the United States has retained its sensitivity to 
the extraordinary nature and penitent purpose of Holocaust restitution 
payments.
  H.R. 4823 seeks to continue this proud tradition. This bill makes 
permanent the provision in H.R. 1836 excluding payments to Holocaust 
victims from taxable income. Without this bill, the exclusion for 
holocaust restitution payments, like all aspects of H.R. 1836, will 
expire on December 31, 2010.
  While no amount of money can truly compensate Holocaust survivors for 
the horrors they endured, in a world where Holocaust denial lives, it 
is crucial to make strong statements of support for Holocaust 
survivors. The increase over the past year of Anti-Semitic incidents in 
Europe makes it an especially important time to stand with those who 
refuse to condone Anti-Semitism.
  Many of the restitution payments have maximum income qualifications. 
Therefore, much of the restitution goes to individuals with yearly 
incomes under $20,000. Furthermore, according to the Jewish Council for 
Public Affairs, as many as 1.4 million people may receive claims, 
cutting the payments to individuals to a relatively small amount. For 
this money to have any real, rather than merely token, significance, 
the tax exemption must remain.
  Australia, Canada, Finland, France, Greece, Hungary, The Netherlands, 
The United Kingdom, and Israel currently exempt restitution payments 
from taxation. So do 46 out of the 50 dates. The Federal government 
must continue to lead the way in supporting Holocaust Survivors. H.R. 
4823 ensures that the support will not disappear in 2010.
  Mr. CRANE. Mr. Speaker, I rise today in support of H.R. 4823. I am 
glad that we are moving forward to make permanent the provisions in the 
Economic Growth and Tax Relief Reconciliation Act.
  The Holocaust was one of the worst atrocities committed by man 
against man. This simple provision will exclude compensatory payments 
made to victims and their heirs from taxation. Given the fact that an 
entire generation was nearly wiped out and that those who survived will 
never fully recover from the emotional horrors of the Holocaust, this 
is a small way of compensating the victims. The current tax provisions 
are due to, ``sunset,'' or expire on December 31, 2010. This 
instability makes it difficult for Holocaust victims and their families 
to plan their financial futures.
  I find it deplorable to think that the Federal Government would seek 
to profit from restitution payments that are meant to compensate 
Holocaust victims and their families. These people have suffered 
enough. They must not be subjected to legislation that would rob them 
of over one-third of their rightful compensation.
  Mr. Speaker, my brother-in-law and best friend, Andy Ross, survived 
the Holocaust. He was imprisoned in Belsen concentration camp until 
being freed by the Allied Forces. I'm not certain if he's eligible for 
compensation under the agreements worked out in Europe, and quite 
frankly, that doesn't really matter. What does matter is that while 
there is absolutely nothing we can do to ever erase the horrors of the 
Holocaust that are imbedded in the minds and hearts of those, like 
Andy, who survived this tragedy, we can avoid making it worse by taxing 
their compensation.
  The thought of us promoting such a scheme as taxing these payments 
makes me absolutely ill.
  Today, we are making a decision that might very well be the model for 
other nations. Therefore, I urge you, to be a role model and vote in 
favor of H.R. 4823
  Mr. CARDIN. Mr. Speaker, I have no further requests for time, and I 
yield back the balance of my time.
  Mr. SHAW. Mr. Speaker, I have no further requests for time, and I 
yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Florida (Mr. Shaw) that the House suspend the rules and 
pass the bill, H.R. 4823.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds of 
those present have voted in the affirmative.
  Mr. SHAW. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.

                          ____________________