[Congressional Record Volume 149, Number 44 (Wednesday, March 19, 2003)]
[House]
[Pages H1964-H1968]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 ARMED FORCES TAX FAIRNESS ACT OF 2003

  Mr. THOMAS. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 1307) to amend the Internal Revenue Code of 1986 to provide 
a special rule for members of the uniformed services in determining the 
exclusion of gain from the sale of a principal residence and to restore 
the tax exempt status of death gratuity payments to members of the 
uniformed services, and for other purposes.
  The Clerk read as follows:

                               H.R. 1307

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

     SECTION 1. SHORT TITLE; REFERENCES.

       (a) Short Title.--This Act may be cited as the ``Armed 
     Forces Tax Fairness Act of 2003''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this Act an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a

[[Page H1965]]

     section or other provision of the Internal Revenue Code of 
     1986.

     SEC. 2. SPECIAL RULE FOR MEMBERS OF UNIFORMED SERVICES IN 
                   DETERMINING EXCLUSION OF GAIN FROM SALE OF 
                   PRINCIPAL RESIDENCE.

       (a) In General.--Subsection (d) of section 121 (relating to 
     exclusion of gain from sale of principal residence) is 
     amended by adding at the end the following new paragraph:
       ``(10) Members of uniformed services.--
       ``(A) In general.--At the election of an individual with 
     respect to a property, the running of the 5-year period 
     referred to in subsections (a) and (c)(1)(B) and paragraph 
     (7) of this subsection with respect to such property shall be 
     suspended during any period that such individual or such 
     individual's spouse is serving on qualified official extended 
     duty as a member of the uniformed services.
       ``(B) Maximum period of suspension.--Such 5-year period 
     shall not be extended more than 5 years by reason of 
     subparagraph (A).
       ``(C) Qualified official extended duty.--For purposes of 
     this paragraph--
       ``(i) In general.--The term `qualified official extended 
     duty' means any extended duty while serving at a duty station 
     which is at least 150 miles from such property or while 
     residing under Government orders in Government quarters.
       ``(ii) Uniformed services.--The term `uniformed services' 
     has the meaning given such term by section 101(a)(5) of title 
     10, United States Code, as in effect on the date of the 
     enactment of this paragraph.
       ``(iii) Extended duty.--The term `extended duty' means any 
     period of active duty pursuant to a call or order to such 
     duty for a period in excess of 180 days or for an indefinite 
     period.
       ``(D) Special rules relating to election.--
       ``(i) Election limited to 1 property at a time.--An 
     election under subparagraph (A) with respect to any property 
     may not be made if such an election is in effect with respect 
     to any other property.
       ``(ii) Revocation of election.--An election under 
     subparagraph (A) may be revoked at any time.''.
       (b) Effective Date; Special Rule.--
       (1) Effective date.--The amendment made by this section 
     shall take effect as if included in the amendments made by 
     section 312 of the Taxpayer Relief Act of 1997.
       (2) Waiver of limitations.--If refund or credit of any 
     overpayment of tax resulting from the amendment made by this 
     section is prevented at any time before the close of the 1-
     year period beginning on the date of the enactment of this 
     Act by the operation of any law or rule of law (including res 
     judicata), such refund or credit may nevertheless be made or 
     allowed if claim therefor is filed before the close of such 
     period.

     SEC. 3. RESTORATION OF FULL EXCLUSION FROM GROSS INCOME OF 
                   DEATH GRATUITY PAYMENT.

       (a) In General.--Paragraph (3) of section 134(b) (relating 
     to qualified military benefit) is amended by adding at the 
     end the following new subparagraph:
       ``(C) Exception for death gratuity adjustments made by 
     law.--Subparagraph (A) shall not apply to any adjustment to 
     the amount of death gratuity payable under chapter 75 of 
     title 10, United States Code, which is pursuant to a 
     provision of law enacted before December 31, 1991.''.
       (b) Conforming Amendment.--Section 134(b)(3)(A) is amended 
     by striking ``subparagraph (B)'' and inserting 
     ``subparagraphs (B) and (C)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to deaths occurring after September 
     10, 2001.

     SEC. 4. EXCLUSION FOR AMOUNTS RECEIVED UNDER DEPARTMENT OF 
                   DEFENSE HOMEOWNERS ASSISTANCE PROGRAM.

       (a) In General.--Subsection (a) of section 132 (relating to 
     certain fringe benefits) is amended by striking ``or'' at the 
     end of paragraph (6), by striking the period at the end of 
     paragraph (7) and inserting ``, or'' and by adding at the end 
     the following new paragraph:
       ``(8) qualified military base realignment and closure 
     fringe.''.
       (b) Qualified Military Base Realignment and Closure 
     Fringe.--Section 132 is amended by redesignating subsection 
     (n) as subsection (o) and by inserting after subsection (m) 
     the following new subsection:
       ``(n) Qualified Military Base Realignment and Closure 
     Fringe.--
       ``(1) In general.--For purposes of this section, the term 
     `qualified military base realignment and closure fringe' 
     means 1 or more payments under the authority of section 1013 
     of the Demonstration Cities and Metropolitan Development Act 
     of 1966 (42 U.S.C. 3374) (as in effect on the date of the 
     enactment of this subsection).
       ``(2) Limitation.--With respect to any property, such term 
     shall not include any payment referred to in paragraph (1) to 
     the extent that the sum of all such payments related to such 
     property exceeds the amount described in clause (1) of 
     subsection (c) of such section (as in effect on such 
     date).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to payments made after the date of the enactment 
     of this Act.

     SEC. 5. EXPANSION OF COMBAT ZONE FILING RULES TO CONTINGENCY 
                   OPERATIONS.

       (a) In General.--Subsection (a) of section 7508 (relating 
     to time for performing certain acts postponed by reason of 
     service in combat zone) is amended--
       (1) by inserting ``or when deployed outside the United 
     States away from the individual's permanent duty station 
     while participating in an operation designated by the 
     Secretary of Defense as a contingency operation (as defined 
     in section 101(a)(13) of title 10, United States Code) or 
     which became such a contingency operation by operation of 
     law'' after ``section 112'',
       (2) by inserting in the first sentence ``or at any time 
     during the period of such contingency operation'' after ``for 
     purposes of such section'',
       (3) by inserting ``or operation'' after ``such an area'', 
     and
       (4) by inserting ``or operation'' after ``such area''.
       (b) Conforming Amendments.--
       (1) Section 7508(d) is amended by inserting ``or 
     contingency operation'' after ``area''.
       (2) The heading for section 7508 is amended by inserting 
     ``OR CONTINGENCY OPERATION'' after ``COMBAT ZONE''.
       (3) The item relating to section 7508 in the table of 
     sections for chapter 77 is amended by inserting ``or 
     contingency operation'' after ``combat zone''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to any period for performing an act which has not 
     expired before the date of the enactment of this Act.

     SEC. 6. MODIFICATION OF MEMBERSHIP REQUIREMENT FOR EXEMPTION 
                   FROM TAX FOR CERTAIN VETERANS' ORGANIZATIONS.

       (a) In General.--Subparagraph (B) of section 501(c)(19) 
     (relating to list of exempt organizations) is amended by 
     striking ``or widowers'' and inserting ``, widowers, 
     ancestors, or lineal descendants''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 7. CLARIFICATION OF THE TREATMENT OF CERTAIN DEPENDENT 
                   CARE ASSISTANCE PROGRAMS.

       (a) In General.--Subsection (b) of section 134 (defining 
     qualified military benefit) is amended by adding at the end 
     the following new paragraph:
       ``(4) Clarification of certain benefits.--For purposes of 
     paragraph (1), such term includes any dependent care 
     assistance program (as in effect on the date of the 
     enactment of this paragraph) for any individual described 
     in paragraph (1)(A).''.
       (b) Conforming Amendments.--
       (1) Section 134(b)(3)(A) (as amended by section 102) is 
     further amended by inserting ``and paragraph (4)'' after 
     ``subparagraphs (B) and (C)''.
       (2) Section 3121(a)(18) is amended by striking ``or 129'' 
     and inserting ``, 129, or 134(b)(4)''.
       (3) Section 3306(b)(13) is amended by striking ``or 129'' 
     and inserting ``, 129, or 134(b)(4)''.
       (4) Section 3401(a)(18) is amended by striking ``or 129'' 
     and inserting ``, 129, or 134(b)(4)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2002.

     SEC. 8. CLARIFICATION RELATING TO EXCEPTION FROM ADDITIONAL 
                   TAX ON CERTAIN DISTRIBUTIONS FROM QUALIFIED 
                   TUITION PROGRAMS, ETC., ON ACCOUNT OF 
                   ATTENDANCE AT MILITARY ACADEMY.

       (a) In General.--Subparagraph (B) of section 530(d)(4) 
     (relating to exceptions from additional tax for distributions 
     not used for educational purposes) is amended by striking 
     ``or'' at the end of clause (iii), by redesignating clause 
     (iv) as clause (v), and by inserting after clause (iii) the 
     following new clause:
       ``(iv) made on account of the attendance of the designated 
     beneficiary at the United States Military Academy, the United 
     States Naval Academy, the United States Air Force Academy, 
     the United States Coast Guard Academy, or the United States 
     Merchant Marine Academy, to the extent that the amount of the 
     payment or distribution does not exceed the costs of advanced 
     education (as defined by section 2005(e)(3) of title 10, 
     United States Code, as in effect on the date of the enactment 
     of this section) attributable to such attendance, or''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect for taxable years beginning after December 
     31, 2002.

     SEC. 9. ABOVE-THE-LINE DEDUCTION FOR OVERNIGHT TRAVEL 
                   EXPENSES OF NATIONAL GUARD AND RESERVE MEMBERS.

       (a) Deduction Allowed.--Section 162 (relating to certain 
     trade or business expenses) is amended by redesignating 
     subsection (p) as subsection (q) and inserting after 
     subsection (o) the following new subsection:
       ``(p) Treatment of Expenses of Members of Reserve Component 
     of Armed Forces of the United States.--For purposes of 
     subsection (a)(2), in the case of an individual who performs 
     services as a member of a reserve component of the Armed 
     Forces of the United States at any time during the taxable 
     year, such individual shall be deemed to be away from home in 
     the pursuit of a trade or business for any period during 
     which such individual is away from home in connection with 
     such services.''.
       (b) Deduction Allowed Whether or Not Taxpayer Elects To 
     Itemize.--Paragraph (2) of section 62(a) (relating to certain 
     trade and business deductions of employees) is

[[Page H1966]]

     amended by adding at the end the following new subparagraph:
       ``(E) Certain expenses of members of reserve components of 
     the armed forces of the united states.--The deductions 
     allowed by section 162 which consist of expenses, not in 
     excess of $1,500, paid or incurred by the taxpayer in 
     connection with the performance of services by such taxpayer 
     as a member of a reserve component of the Armed Forces of the 
     United States for any period during which such individual is 
     more than 100 miles away from home in connection with such 
     services.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or incurred in taxable years 
     beginning after December 31, 2002.

     SEC. 10. PROTECTION OF SOCIAL SECURITY.

       The amounts transferred to any trust fund under title II of 
     the Social Security Act shall be determined as if this Act 
     (other than this section) had not been enacted.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
California (Mr. Thomas) and the gentleman from New York (Mr. Rangel) 
each will control 20 minutes.
  The Chair recognizes the gentleman from California (Mr. Thomas).
  Mr. THOMAS. Mr. Speaker, I yield myself such time as I may consume.
  This particular provision is called the Armed Forces Tax Fairness Act 
of 2003, and a couple of examples, I think, will make it quite obvious 
as to why it is the tax fairness part of the title that we should focus 
on. As we now know for some years now, you have been able to exclude 
the capital gain on a home if you lived in that home as your principal 
residence for 24 months out of a 5-year period. Of course, we all know 
that the military as to where they live is subject to the exigencies of 
the world and the need for military personnel to be dispersed sometimes 
literally around the world. I think it is entirely appropriate to 
examine this kind of a piece of legislation in the context of where we 
are vis-a-vis the President's decision to perhaps move militarily 
against Iraq.
  So what this says is that if, in fact, you are not able to meet that 
24-months-out-of-5-year period for exclusion from the capital gains, 
and the reason you are not able to is because you have been transferred 
away from home on official extended duty during that 5-year period, you 
would be exempt from that regulation.
  There follow a series of other changes in the Tax Code that very much 
are representative of that kind of approach in treating the military 
differently because the military does not have the ability at times, 
the individuals in the military, to control decisions that affect them 
directly.
  That is the purpose of the bill. It is as it was originally 
introduced. For purposes of determining the above-the-line deduction 
for overnight travel expenses for military reservists, this bill, as 
some people know, passed the House twice in the last Congress, and in 
negotiating with the Senate, the agreement at that time was that the 
exemption should be up to $1,500 for reservists who serve more than 100 
miles away from home. That was an agreement that had been negotiated 
between the House and the Senate, and this particular bill includes 
that agreement so that we could reach quick settlement in a conference 
between the House and the Senate.
  Mr. Speaker, I reserve the balance of my time.
  Mr. RANGEL. Mr. Speaker, I yield myself such time as I may consume.
  I rise in support of this suspension bill and congratulate the 
chairman of the committee for taking the bulbs and baubles and whistles 
off the Christmas tree that they stacked on this bill initially. I am 
disappointed that we were not able to do more for our reservists, but I 
am pleased that we are doing more than they had originally thought on 
the other side of the aisle. And I am glad to see that we are bringing 
a clean bill to the floor and that is not bogged down with fish tackle 
boxes and foreign bettors on horse races.
  I do hope during these very sober hours and days that the majority 
will think more and more about how we can be of assistance to those 
brave men and women who have volunteered or who are in the Reserve to 
see what we can do to not only give them political support, but 
legislatively to give them real support for the dedication that they 
continuously show not only in defense of this great country, but now in 
following the mandates of the President.
  I would like to say that during time of war, we have become 
historically accustomed to the fact that we share sacrifices. Soon our 
chairman will be presenting to us an obscene tax bill that is anything 
but sacrifice, but would reward the wealthy. I do hope that as the 
House has caused the committee's leadership to change its mind and try 
to do things fairly, that we will see a change in attitude as this 
country is on the brink of war where shared sacrifice means exactly 
what the President said it would mean, and that is that we all be 
prepared to give support.
  I support the Armed Forces tax fairness bill. I do hope we will see 
more bills of this kind in the future.
  Mr. Speaker, I reserve the balance of my time.
  Mr. THOMAS. Mr. Speaker, it is my pleasure to yield such time as he 
may consume to the gentleman from North Carolina (Mr. Jones), who has a 
measure included in this bill, which was a separate bill, which is a 
significant piece of legislation.
  Mr. JONES of North Carolina. Mr. Speaker, as Members know, I 
represent the Third District of North Carolina, which is the home of 
Camp Lejeune and Cherry Point and Seymour Johnson Air Force Base. A 
bill that I introduced, H.R. 693, the Military Death Gratuity 
Improvement Act, I want to thank the chairman and the ranking member 
for including that bill, or the language from that bill, into this 
major bill that I think is of great benefit to our men and women in 
uniform.

                              {time}  1100

  I would like to give very briefly the history of this provision 
because the death gratuity was reaffirmed as a tax free benefit when 
the Congress amended the Tax Code in 1986; and about a year ago I 
happened to be driving back to the Congress, and I was listening to a 
talk show and they were talking about how the fact that our men and 
women in uniform who received the death gratuity, should they die while 
serving this Nation, that the families are taxed; and to the chairman 
and ranking member, this just really bothered my heart, to be honest 
about it.
  So I called my staff and I asked John Weaver if he would look into 
this, and I thought there must have been some mistake along the way. 
And actually there was and when the mistake took place was in 1991 when 
the Congress actually increased the death gratuity from $3,000 to 
$6,000; and what happened was the Committee on Armed Services did not 
send the bill to the Committee on Ways and Means, so therefore there 
was a tax on the second $3,000. And Mr. Speaker and Members of the 
Congress, as our wonderful men and women in uniform are ready to go to 
war and to die for this country, I think this is an excellent bill not 
just because of this provision but because of the other provisions in 
this major bill that will help our men and women in uniform. So by the 
passage of this bill today, we are taking the tax off the death 
gratuity when the government says to the families of those who have 
lost loved ones that they are receiving this small amount, but yet 
important amount, of $6,000, that they will not get a bill from the IRS 
at the end of the year.
  So with that I want to thank the chairman and ranking member for 
including the language from H.R. 693, the Military Death Gratuity 
Improvement Act, in this bill to help our men and women in uniform. 
This is just a small portion of the bill, but I thank them very much.
  Let me say in closing, Mr. Speaker, to the chairman and the ranking 
member that the men and women in my district, and again it is Camp 
Lejeune, Cherry Point, Seymour Johnson Air Force base, are very 
appreciative of how we have worked together to bring this bill forward 
to help our men and women in uniform. So with that I thank the chairman 
for yielding me this time and God bless America.
  Mr. RANGEL. Mr. Speaker, I yield 3 minutes to the gentleman from 
Maryland (Mr. Cardin), an outstanding member of the Committee on Ways 
and Means.
  Mr. CARDIN. Mr. Speaker, let me thank the gentleman from New York 
(Mr. Rangel) for yielding me this time.
  I want to thank the gentleman from California (Mr. Thomas), our 
chairman, and the gentleman from New York (Mr. Rangel), ranking member, 
for developing a process where we could act quickly on this bill. I 
think this is the

[[Page H1967]]

first of, I am sure, other actions that we will be able to do as a body 
to show our support for the men and women that are in harm's way that 
are ready to answer the call of our Nation. I think all of us want to 
do everything we can here to support our troops, as today they are 
ready to act on behalf of our Nation.
  I also want to thank the chairman and ranking member for including 
the provision in here that was brought to our attention from those 
families of students that are in our military academies. I have the 
honor of representing Annapolis where the Naval Academy is located. 
There was a provision in our code that discriminated against families 
of those that were in the academies in their ability to withdraw moneys 
from educational savings accounts without penalty. So I want to thank 
them for including that provision. There are many other provisions in 
there bill that provide equity for those who serve in our military, and 
I know all of us are going to show strong support for this legislation. 
I just really want to express my appreciation to the chairman and 
ranking member.
  Mr. THOMAS. Mr. Speaker, I yield as much time as he may consume to 
the gentleman from New York (Mr. Houghton), a member of the Committee 
on Ways and Means.
  Mr. HOUGHTON. Mr. Speaker, I would like to just make a few comments 
on H.R. 1307, and of course ask my colleagues to support it.
  Last summer I introduced a bill that contained two of the present 
provisions, very modest. The bill increased the tax-free death benefit 
from $3,000 to $6,000 to members of our Armed Forces. Second, the bill 
made a change to allow members of the Armed Forces to have the 5-year 
rule, the so-called 5-year rule, deferred during the period they are 
assigned away from their principal residence. What this does is to 
allow individuals to take advantage of the law that excludes gain on 
the sale of a residence up to $250,000 or $500,000 per couple and if 
they resided in the property for 2 of the 5 years preceding the sale, 
and that was that. The bill passed the House. Both of these provisions 
are in and are part of H.R. 1307. The bill also expands the definition 
of ``member'' to include ancestors and lineal descendants for purposes 
of certain requirements of tax-exempt veterans organizations. These are 
all good changes. I recommend them. I support them.
  Mr. RANGEL. Mr. Speaker, I yield 4 minutes to the gentleman from 
Missouri (Mr. Skelton), the ranking member of the Committee on Armed 
Services on the Democratic side.
  Mr. SKELTON. Mr. Speaker, I appreciate the ranking member recognizing 
me on this very important bill, the Armed Forces Tax Fairness Act of 
2003. So I rise in support of this bill which is much-needed tax relief 
for our men and women in uniform. And although there was some delay, I 
am glad that the majority has agreed to remove the extraneous 
amendments and bring a clean bill to the floor, and we thank them for 
that. A bill to provide tax relief for brave men and women is not the 
appropriate vehicle for extraneous amendments.
  I hope that this bill will now be able to move forward expeditiously 
so that our servicemen and women, particularly those in the Guard and 
Reserve, will be able to receive meaningful and proper tax relief.
  Since the end of the Persian Gulf conflict in 1991, our reliance on 
the Reserve components has steadily increased. In 1993, for example, 
Reservists and National Guardsmen provided 5.7 million man-days' worth 
of support to our military. In the wake of the attacks on September 11, 
2001, Reservists provided more than 41 million man-days of support to 
meet military requirements, primarily because of operations Noble 
Eagle, which of course is protecting the United States, and Enduring 
Freedom, which was liberating Afghanistan. The demands on our 
Reservists to participate in military operational missions have more 
than doubled in recent years.
  The global war on terrorism has also increased burden on the Reserves 
and National Guard. Following the terrorist attacks on September 11, 
some 85,500 Reserve and National Guardsmen personnel were mobilized for 
active duty. Thousands were sent to guard our Nation's airports. This 
provided security for bridges and power plants and water treatment 
facilities and other important infrastructures that are vital to the 
American economy. Today, more than 50,000 Reservists still remain 
mobilized for the global war on terrorism, and almost 20,000 
Reservists, and I will say there again, almost 20,000 Reservists face a 
second year of involuntary active duty.
  The last several months have seen the number of mobilized Reservists 
soar to over 120,000 to meet potential demands for our conflict in 
Iraq, and these numbers continue to rise daily. Allowing travel expense 
deductions for Reservists is the least we can do for these brave men 
and women.
  Last year the House and the Senate passed similar tax measures to 
support the troops. In the waning days of the Congress, the measure was 
tied up by extraneous provisions, which ultimately led to its demise 
before adjournment. On the eve of our Nation going to war, and that is 
what we are going to do, I urge my colleagues to support this measure 
so that we can move forward in ultimately adopting a bill that will 
provide significant tax relief for those who wear the uniform of the 
United States of America.
  Mr. THOMAS. Mr. Speaker, I yield myself such time as I may consume.
  I agree with the gentleman from Missouri that the House and the 
Senate have indeed acted, but not in concert and let the Record note 
that the House acted in July and again in October. That perhaps was not 
enough lead time for the Senate; so we are moving in March, and we 
believe that may be sufficient lead time for the Senate to be able to 
act.
  Mr. Speaker, I yield such time as he may consume to the gentleman 
from Florida (Mr. Foley), a member of the Committee on Ways and Means.
  Mr. FOLEY. Mr. Speaker, I thank the gentleman from California (Mr. 
Thomas) for bringing this very important bill, H.R. 1307, to the floor, 
the Armed Forces Tax Fairness Act. I am pleased to have played a part 
in the Committee on Ways and Means and delighted it is here on the 
floor today.
  Our forces will soon be engaging the enemy. We pray for their safety 
and also for a quick and decisive victory. We have about a quarter of a 
million of our soldiers, sailors, airmen and Marines poised for combat 
in the Middle East. In addition, thousands upon thousands of our 
military personnel are patrolling our skies, protecting key domestic 
sites, and fighting the war on terror both here at home and abroad. Our 
military families, active duty, the Reserves, and the National Guard 
are feeling increased pressure from frequent and longer deployments. 
This legislation brings tax relief and fairness to those who are 
protecting our freedoms.
  I would like to focus quickly, if I may, on the Reserve component. 
One of the most important provisions of this bill would provide a 
$1,500 above-the-line deduction for their nonreimbursable overnight 
travel expenses. Let me underscore these travel expenses are not just 
for casual jaunts. These are for them to do their training required of 
them by this government so that they will be ready in fact to provide 
the backup needed for our active duty troops. Many give up time from 
their families, certainly leaving their loved ones, to be ready to 
combat the evil that may occur in this country or in fact abroad.
  For too long our Reservists have incurred significant out-of-pocket 
costs associated with traveling to and from their Reserve stations. Our 
men and women in uniform should not be financially punished for serving 
their country, and thankfully this legislation fixes that problem. Our 
men and women in uniform deserve nothing less, and again I reiterate 
our prayers today go out to all families and particularly those who are 
in harm's way as they lead freedom in Iraq and certainly lead us away 
from terror in the United States.
  Mr. RANGEL. Mr. Speaker, I yield 3 minutes to the gentleman from New 
York (Mr. McNulty), an outstanding member of the Committee on Ways and 
Means.
  Mr. McNULTY. Mr. Speaker, I thank the gentleman from New York (Mr. 
Rangel), my friend and colleague, for yielding me this time.
  As I have said many times on this floor, as I get older, I try to 
keep my

[[Page H1968]]

priorities straight. And part of that is to remember that had it not 
been for all of the men and women who have worn the uniform of the 
United States military through the years, people like me would not have 
the privilege of going around bragging about how we live in the freest 
and most open democracy on the face of the Earth. Freedom is not free. 
We have paid a tremendous price for it. And I try not to let a day go 
by without remembering with deepest gratitude all of those who, like my 
own brother Bill McNulty, made the supreme sacrifice; and all of those 
who served and put their lives on the line like the gentleman from New 
York (Mr. Rangel), like the gentleman from Texas (Mr. Sam Johnson), 
like other people in this Chamber. Thankfully they came back home and 
rendered outstanding service in the community and raised beautiful 
families to carry on in their fine traditions. We all should be deeply 
grateful for that. And that is why when I get up in the morning, my 
first two priorities are to thank God for my life, and then veterans 
for my way of life.
  Today more than a quarter of a million brave Americans are overseas 
poised for military action. Let us remember them in our thoughts and 
prayers every day. This proposal is a very modest proposal; but it is 
well earned, it is deserved, and I am deeply grateful to the chairman 
of the committee and the ranking member for bringing it to the floor. I 
urge all members to support it.

                          ____________________