[Congressional Record Volume 149, Number 90 (Wednesday, June 18, 2003)]
[Extensions of Remarks]
[Page E1298]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  THE ASBESTOS CLAIMS TAX FAIRNESS ACT

                                 ______
                                 

                            HON. MAC COLLINS

                               of georgia

                    in the house of representatives

                        Wednesday, June 18, 2003

  Mr. COLLINS. Mr. Speaker, I rise to introduce the Asbestos Claims Tax 
Fairness Act. Asbestos liability issues have reached crisis stage. The 
costs of the current and potential lawsuits filed against these 
companies by claimants are staggering. More than 200,000 tort claims 
regarding exposure to asbestos are pending today, and more than 50,000 
new claims are being filed each year.
  Many former manufacturers of asbestos stopped using and distributing 
asbestos long before 1986. However, most of these companies or their 
corporate descendants, are bankrupt or nearing bankruptcy. As a result, 
asbestos liabilities are being shouldered alone by the dwindling number 
of former asbestos manufacturers and distributors that remain in 
business. This spiraling cycle into bankruptcy means asbestos victims 
are faced with the decreasing likelihood that they will be compensated 
for their injuries in the future.
  In the 107th Congress, along with more than 125 of our colleagues, my 
colleague from Georgia and I introduced tax legislation that would help 
provide compensation to victims of asbestos and help companies beset by 
asbestos liabilities to continue as viable employers. That bill, H.R. 
1412, was the continuation of efforts begun in the 106th Congress. 
Since the beginning of that effort, the plight for victims has worsened 
and the economic viability of those entities responsible for meeting 
those obligations has deteriorated significantly.
  Today I again introduce a bill that will help to ensure that there 
are funds available to pay victims of asbestos exposure.
  The legislation has two components. First, it would increase the 
amount of resources available to pay injured asbestos victims by 
exempting from federal tax settlement funds established to pay asbestos 
victims. Hundreds of thousands of individuals rely on these funds for 
compensation. Under current law, these funds are taxed at the top 
income tax rate of 35-percent rate.
  Second, the legislation would ease tax-law limitations on asbestos 
defendants who are emerging from bankruptcy. More than 60 companies 
currently paying asbestos victims have been forced into bankruptcy. Our 
legislation would exempt these companies from certain tax-law rules 
that limit use of a bankrupt company's tax assets. This relief would be 
provided only in situations where the company's restructuring in 
bankruptcy results in the company continuing as a going concern.
  Mr. Speaker, the legislation I am introducing today is not intended 
to solve all of the problems caused by the asbestos crisis. But these 
measures will help companies emerge as soon as possible from 
bankruptcy, minimizing the potential for job losses in the economy and 
reducing the risk of lost benefits to asbestos claimants. I urge my 
colleagues to join me in this effort.

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