[Congressional Record Volume 149, Number 154 (Wednesday, October 29, 2003)]
[House]
[Pages H10058-H10062]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
FALLEN PATRIOTS TAX RELIEF ACT
Mr. SAM JOHNSON of Texas. Mr. Speaker, I move to suspend the rules
and pass the bill (H.R. 3365) to amend title 10, United States Code,
and the Internal Revenue Code of 1986 to increase the death gratuity
payable with respect to deceased members of the Armed Forces and to
exclude such gratuity from gross income.
The Clerk read as follows:
H.R. 3365
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 ``Fallen Patriots Tax Relief
Act''.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) The tragic events of September 11, 2001, and subsequent
worldwide combat operations in the Global War on Terrorism
and in Operation Iraqi Freedom have highlighted the
significant contributions of members of the Armed Forces in
support of the national security of the United States and the
sacrifices made by those members in the defense of freedom.
(2) The sacrifices made by the members of the Armed Forces
are significant and are worthy of meaningful expressions of
gratitude by the Government of the United States, especially
in the case of sacrifice through loss of life.
(3) The death gratuity payment made by the United States
Government for deaths while in military service has
historically been tax exempt.
(4) The military death gratuity payment should remain tax
exempt in order to assist families of fallen patriots to
continue their quality of life during their greatest time of
need.
(5) The Congress should periodically increase the amount of
the military death gratuity payment to ensure that its value
is not diminished.
SEC. 3. INCREASE IN DEATH GRATUITY PAYABLE WITH RESPECT TO
DECEASED MEMBERS OF THE ARMED FORCES.
(a) Amount of Death Gratuity.--Section 1478(a) of title 10,
United States Code, is amended by striking ``$6,000'' and
inserting ``$12,000''.
(b) Effective Date.--The amendment made by subsection (a)
shall take effect as of September 11, 2001, and shall apply
with respect to deaths occurring on or after that date.
SEC. 4. RESTORATION OF FULL EXCLUSION FROM GROSS INCOME OF
DEATH GRATUITY PAYMENT.
(a) In General.--Paragraph (3) of section 134(b) of the
Internal Revenue Code of 1986 (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 on or before the date of the
enactment of this subparagraph.''.
(b) Conforming Amendment.--Section 134(b)(3)(A) of such
Code 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.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Texas (Mr. Sam Johnson) and the gentleman from New York (Mr. McNulty)
each will control 20 minutes.
The Chair recognizes the gentleman from Texas (Mr. Sam Johnson).
Mr. SAM JOHNSON of Texas. Mr. Speaker, I yield myself such time as I
may consume.
Mr. Speaker, I rise today in support of this bill, the Fallen
Patriots Tax Relief Act. It is important to me, and I think to the
whole Congress, that we get this enacted right away. It is
unconscionable to me that a knock at the door by a military chaplain is
followed by a knock on the door from the tax man.
Sadly, this is the case. I had the distinct honor of serving my
country in the Air Force for about 29 years. So my family and I know
something about this part of military life, and I will never forget,
after I got home from being a prisoner of war, that my wife said that
one of her worst moments was when the military chaplain pulled up in
front of the house after I was shot down and her heart just stopped.
She did not know what they were going to say, but she knew it was not
going to be good, and I cannot imagine today the unspeakable despair of
a family who just lost the loved one in service of their country only
to be followed up by the horror of a visit from the tax man. That is
just wrong. This bill fixes that. We need to change that law today.
This bill permits the entire amount of the death benefit gratuity to
be tax free. It also increases the amount of the death benefit to
$12,000, which is more in line with the value of these benefits when
they were initially created.
This is a clean bill. There is absolutely no good reason for it to
get fouled up in the same legislative back water that stalled three
previous provisions of this bill.
Sadly, every day we hear of deaths in Iraq and other military hot
spots around the globe. In the 2 years since 9/11, it has been
increasingly important that we eliminate the unfair, immoral tax on the
death benefit of a servicemember's loved ones who receive that from the
Armed Forces.
Mr. Speaker, I reserve the balance of my time.
Mr. McNULTY. Mr. Speaker, I yield myself such time as I may consume.
There is no need for me to reiterate the details of this bill. The
gentleman from Texas has outlined them. I strongly support the bill,
and I agree with him wholeheartedly, that its passage is long overdue.
I will also say that it is one of my great honors to serve in the
United States Congress with my friend Sam Johnson. He rendered
outstanding service as a member of our Armed Forces over a very long
period of time. He was also, as my colleagues all know, a prisoner of
war for 7 years and endured torture during his service on behalf of our
country. Thankfully, he came back home and has rendered outstanding
service to his community, to his State, and his Nation ever since.
{time} 1400
I am grateful to him, and I am grateful to all of those who served in
our Armed Forces through the years.
As I get older, I work more at keeping my priorities straight. Part
of that for me is to remember that had it not been for all of the men
and women who served in the United States military through the years,
the rest of us would not have the privilege of going around bragging,
as I often do, 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. Part of
that
[[Page H10059]]
price is visible in this Chamber. And today we are talking about those
who made the supreme sacrifice. The gentleman from Texas (Mr. Sam
Johnson) was a prisoner of war in the same war that took the life of my
brother, HM3 Bill McNulty; and I think that is why I feel especially
close to Sam.
Mr. Speaker, this is a very, very minor benefit to the families of
those who made the supreme sacrifice, and we ought to pass it with
dispatch. I strongly support this bill, and I urge all of my colleagues
to vote for it.
Mr. Speaker, I am pleased to yield 4 minutes to the gentleman from
Massachusetts (Mr. McGovern).
Mr. McGOVERN. Mr. Speaker, I thank the gentleman for yielding me this
time and for his long leadership on tax fairness and support for our
men and women in uniform. I also want to publicly express my
appreciation for the leadership and the service of the gentleman from
Texas (Mr. Sam Johnson).
Mr. Speaker, I rise in strong support of H.R. 3365. I had the
opportunity last night to speak about the need to change the current
military death gratuity, so I simply want to thank my colleague from
Arizona (Mr. Renzi) for making sure that the House delays no longer in
acting on this urgent issue. I also want to commend the tireless work
of the gentleman from Texas (Mr. Edwards) and the gentleman from North
Carolina (Mr. Jones), who were pioneers on this issue and so many
others that benefit our military and their families.
I want to thank my good friend and colleague, and the ranking
minority member of the House Committee on Armed Services, the gentleman
from Missouri (Mr. Skeleton), for ensuring that language to increase
the death gratuity and to make it retroactive to September 11, 2001,
will be included in the defense authorization conference report.
Mr. Speaker, I heard from many military veterans in my district about
this issue. In April, Mr. Philip Kurdulis of Worcester, Massachusetts,
in particular, motivated me to fix the problems with the death
gratuity. He wrote: ``Dear Representative McGovern: I was shocked to
find out that the death benefit for our servicemen and women is only
$6,000, and that $3,000 of that is taxed. We need to do the right thing
as a country for the brave men and women who have made the ultimate
sacrifice for their country. The Congress had no problem coming up with
$1.6 million each for the families and survivors of the World Trade
Tower victims. I do not begrudge this money; however we should do much
more for the brave men and women we sent to avenge them. Deaths in our
current war in Iraq and the conflict in Afghanistan have been
relatively few in number. I believe it should be affordable, therefore,
to increase the death benefit. I propose legislation to correct this
grossly inadequate compensation. As a 10-year veteran of the Army
Reserve, I ask you to `Achieve the Honorable' in this matter.''
Mr. Speaker, I also want to thank Mr. Gary Brown, who is the director
of the VA office in Marlborough, Massachusetts, who encouraged me to
introduce legislation to remedy the problems with the current death
gratuity, which I did on September 5 when I introduced H.R. 3019, a
bill that is basically identical to the one we are considering today.
Mr. Speaker, as of this morning, 352 American military personnel have
lost their lives in Iraq. At least 67 others have perished in Operation
Enduring Freedom, mainly in Afghanistan. Among the fallen, nine are
from Massachusetts. In the face of such loss, Members of Congress stand
united in our need to express our condolences and respect to the
families who have lost a loved one and to ensure that their most
immediate needs are provided for. Today, the House will do the right
thing by our military families and pass H.R. 3365; but, Mr. Speaker, we
cannot stop there. We must make sure that this bill reaches the
President's desk before we adjourn. Only then can we be sure that
grieving military families will not be burdened with an unexpected tax
bill.
We must also move now to complete our work on the Armed Forces Tax
Fairness Act, which provides additional assistance to our uniformed men
and women, especially our overstressed Guard and Reserves.
It is more than a bit ironic, Mr. Speaker, that yesterday the
majority in the Committee on Ways and Means approved legislation to
provide $140 billion in corporate tax breaks but cannot seem to find
the time to send this very modest bill of tax relief for our military
to the President of the United States.
Mr. Speaker, I would urge my colleagues to vote ``yes'' on H.R. 3365,
and I call upon the House leadership to send the Armed Forces Tax
Fairness Act to the President.
Mr. Speaker, I submit for the Record the names of the servicemen from
Massachusetts who have been killed in combat.
Members of U.S. Armed Forces From Massachusetts Killed in Action or
Died While on Active Duty September 11, 2001-Curent Date
(Information may be partial or incomplete; sources: CNN ``Forces: U.S.
and Coalition Casualities'' and Central Command Public Affairs Office/
U.S. Department of Defense)
Staff Sergeant Joseph P. Bellavia; Age: 28; Unit: 716th
Military Police Battalion, 16th Military Police Brigade,
XVIII Airborne Corps, U.S. Army; Hometown: Wakefield, MA;
Date and Place of Death: October 16, 2003 in Karbala, Iraq.
Specialist Matthew G. Boule; Age: 22; Unit: 2nd Battalion,
3rd Aviation Regiment, 3rd Infantry Division, U.S. Army;
Hometown: Dracut, MA; Date and Place of Death: April 2, 2003
in central Iraq.
Staff Sergeant Joseph Camara; Age: 40; Unit: 115th Military
Police Company, Army National Guard; Hometown: New Bedford,
MA; Date and Place of Death: May 21, 2003 in an area south of
Baghdad, Iraq.
Sergeant Justin W. Garvey; Age: 21; Unit: 1st Battalion,
187th Infantry Regiment, 3rd Brigade, 101st Airborne
Division, U.S. Army; Hometown: Townsend, MA; Date and Place
of Death: July 20, 2003 in Tallifar, Iraq.
Private First Class John D. Hart; Age: 20; Unit: 1st
Battalion, 508th Infantry Regiment, 173rd Airborne Brigade,
U.S. Army; Hometown: Bedford, MA; Date and Place of Death:
October 18, 2003 in Taza, Iraq.
1st Lieutenant Brian M. McPhillips; Age: 25; Unit: 2nd Tank
Battalion, 2nd Marine Division, U.S. Marines; Hometown:
Pembroke, MA; Date and Place of Death: July 27, 2003 in
central Iraq.
Captain Benjamin W. Sammis; Age: 29; Unit: Marine Aircraft
Group 39, 3rd Marine Aircraft Wing, U.S. Marines; Hometown:
Rehobeth, MA; Date and Place of Death: April 4, 2003 in Ali
Aziziyal, Iraq.
Sergeant First Class Daniel H. Petithory; Age: 32; Unit:
U.S. Army; Hometown: Cheshire, MA; Date and Place of Death:
December 5, 2001 in Afghanistan.
Staff Sergeant Bruce A. Rushforth, Jr.; Age: 35; Unit: U.S.
Army; Hometown: Middleboro, MA; Date and Place of Death:
February 21, 2002 in the Philippines.
Mr. SAM JOHNSON of Texas. Mr. Speaker, I reserve the balance of my
time.
Mr. McNULTY. Mr. Speaker, I am pleased to yield 5 minutes to the
gentleman from Missouri (Mr. Skelton), my former colleague on the
Committee on Armed Services and the ranking minority member of the
Committee on Armed Services of the House of Representatives.
Mr. SKELTON. Mr. Speaker, I thank the gentleman for his leadership on
this, and my friend, the gentleman from Massachusetts (Mr. McGovern),
for his hard work in seeing to it this bill gets here; and I thank as
well our friend, the gentleman from Texas (Mr. Sam Johnson).
Mr. Speaker, I rise in support of this bill, and I thank those who
have offered it and have cosponsored it. The bill before us increases
the death gratuity from $6,000 to $12,000; but more important, it would
provide that the entire payment be tax free.
Congress first established the benefit for death back in 1908, and
there is a long history of this. As a result of increasing the benefit
from $3,000 to $6,000, and the way the law was written at the time,
part of that remained taxable. We are now increasing this to $12,000
and making it all nontaxable.
About a month ago, I went to Iraq. I had the opportunity to see some
young men and young women in uniform doing their duty. It is arduous
and difficult, and I felt very proud of them. Whether they had a star
on their shoulder or whether they be buck privates, they were doing
masterful jobs, for which they were well trained. They are the cream of
the crop of our youth in this country. We thank them for that.
Three days our group spent in Iraq, flying in and out of Baghdad from
Kuwait. We had to spend the night in Kuwait, for security reasons, we
were told. The second night, Sunday night, we flew from Baghdad back to
Iraq, and
[[Page H10060]]
in the C-130 airplane there was with us a body bag carrying the body of
a young soldier. It caused me to stop and think that these young
Americans are literally putting their lives on the line, and the best
thing we can do is to show gratitude and appreciation.
Cicero once said that gratitude was the greatest of all virtues, and
I think that he was right. So how do we do that today? We do it with
this bill, introduced by the gentleman from Massachusetts (Mr.
McGovern), the gentleman from Arizona (Mr. Renzi), the gentleman from
New York (Mr. McNulty), and the gentleman from Texas (Mr. Sam Johnson).
This shows gratitude to those unfortunate families that lose a loved
one, and it is a good thing that we can do.
I wholeheartedly support it, both the increase and the tax benefit
therefrom, because gratitude is the greatest of all virtues and this is
one small way we can express it.
Mr. Speaker, I rise to support my colleagues, Mr. Renzi and Mr.
McGovern, in their efforts to provide a tax-free, increased death
gratuity payment to survivors of deceased service members. The bill
before us would increase the death gratuity payment from $6,000 to
$12,000, but more importantly, it would provide that the entire payment
be tax free.
Congress first established the death gratuity payment in 1908. At the
time, it provided six months pay to the survivors of deceased service
members. The death gratuity was necessary because there was no
government life insurance program and career personnel often could not
obtain or afford adequate commercial life insurance. The death gratuity
payment was used to provide immediate financial assistance to families
of deceased military members to meet immediate expenses.
The death gratuity program was repealed in 1917 when Congress
established the predecessor to the current Dependency and Indemnity
Compensation Program. However, only two years later, Congress would
restore this important benefit. Over time as inflation and pay
increases eroded the principle of a six-month pay payment, all
survivors regardless of rank began to receive the higher payment of
$3,000.
The maximum $3,000 tax-free benefit would not see a notable increase
until 1991, as our Nation sent its sons and daughters in uniform to war
in the Persian Gulf conflict. Congress, recognizing the sacrifices that
our military families were experiencing, doubled the death gratuity
payment from $3,000 to $6,000. Unfortunately, the additional increase
of $3,000 was determined to be a taxable benefit.
Today, over 120,000 American troops are back in the Persian Gulf to
help liberate the Iraqi people. Since the start of the Iraq conflict,
over 229 service members have given their lives in combat and another
127 have been killed in the line of duty. In addition, 31 service
members have lost their lives in combat in Afghanistan in Operation
Enduring Freedom, and 58 Armed Forces personnel have been killed in
service to their Nation.
We have a moral obligation to provide assistance to these families
and help them through this difficult time. Increasing the death
gratuity to $12,000 for these military families, and those who may lose
their service member in the war against terrorism, will provide
immediate financial assistance to families in those first turbulent and
stressful weeks.
As my colleagues are aware, the conferees to the defense
authorization bill are also considering a conference provision that
would increase the death gratuity to $12,000 for survivors of deceased
service members.
While I am relatively confident that provision will be accepted by
the conferees, what is really needed is to make this payment tax-free.
Which is why I am pleased that my colleagues from the Ways and Means
Committee are here today to help ensure that the death gratuity
payments paid to military families are tax-free. These families should
not have to worry that this additional money, provided to them in a
time of need, may end up being a financial hardship at the end of the
year.
I urge my colleagues to recognize the sacrifices and dedication of
those who serve in uniform, and support this effort to provide these
families the additional financial resources to help them during a
heartbreaking and distressing time.
Mr. SAM JOHNSON of Texas. Mr. Speaker, I yield myself such time as I
may consume to thank the gentleman from Missouri for his comments.
Mr. Speaker, I reserve the balance of my time.
Mr. McNULTY. Mr. Speaker, I am pleased to yield 3 minutes to the
gentlewoman from California (Ms. Woolsey), my friend and colleague.
Ms. WOOLSEY. Mr. Speaker, yesterday the 352nd and 353rd American
servicemembers were killed since the start of the war in Iraq. That
means almost twice as many soldiers have died since the President
declared an end to major fighting operations than during the 2 months
of actual war. Something is drastically wrong here.
We are not adequately showing our gratitude to those who have
sacrificed for us. As a result, 353 of our soldiers have lost their
lives, which speaks to the administration's haphazard planning for the
postconflict phase in Iraq, costing those 353 Americans their lives and
thousands who have been wounded.
We must support our brave men and women stationed in Iraq and
Afghanistan, and we must also make a commitment to support the widows
and widowers of those soldiers who are killed halfway around the world.
And we can do that by passing H.R. 3365, doubling the amount paid to
survivors of service men and women killed on the battlefield from
$6,000 to $12,000, at the same time making this benefit completely tax
free. After all, taxing families of patriots does not seem very
patriotic to me.
It appears this bill has strong bipartisan support, and yet we have
not always been so dedicated to our soldiers. On October 20, here in
this House, less than 2 weeks ago, this body voted on an amendment to
the $87 billion supplemental bill that would have added $1,500 as a
bonus for troops serving in Iraq and Afghanistan. Unfortunately, this
amendment failed by a vote of 213 to 213, with most Democrats voting in
favor of the bonus and most Republicans voting against the bonus.
The Republican administration thrust upon us this budget-busting $87
billion supplemental spending bill for Iraq and Afghanistan, and then
the House had the audacity to vote against the bonus for our troops;
our troops who are in harm's way; our troops who have been wounded, and
whose lives will be changed and altered forever; and our troops who
have given up their lives for this country.
We must support our troops. We must compensate them for their service
to this country should disaster strike. As any pundit would have
predicted, and which has happened 353 times to date in Iraq in the last
7 months, we must support the families of those who make the ultimate
sacrifice. Mr. Speaker, this is the very least we can do. To that end,
I am proud to support H.R. 3365.
Mr. SAM JOHNSON of Texas. Mr. Speaker, I reserve the balance of my
time.
Mr. McNULTY. Mr. Speaker, I yield myself such time as I may consume.
I join with the others in commending the gentleman from Arizona and the
gentleman from Massachusetts for their sponsorship of this bill. I
thank the ranking minority member of the Committee on Ways and Means,
the gentleman from New York (Mr. Rangel), for designating me to manage
the bill on the Democratic side.
As I said in the beginning, this is a minor tax benefit that we are
giving to those who have made the supreme sacrifice. I wish we were
doing more, but I strongly agree with my friend and colleague, the
gentleman from Texas, that this is long overdue. We need to do this
with dispatch, and we need to do it for the families of those who have
lost their loved ones.
One of the fundamental principles is that ``life is to give, not to
take.'' Sitting across from me in this Chamber is a gentleman who has
given a great deal throughout his life, and especially during his
military service. Veterans of this country and the families of those
who have lost loved ones could have no better friend than the gentleman
from Texas (Mr. Sam Johnson). He is one of the reasons why, when I get
up in the morning, the first two things I do are to thank God for my
life and veterans, like the gentleman from Texas, for my way of life.
I urge all of my colleagues to support this bill.
Mr. Speaker, I yield back the balance of my time.
Mr. SAM JOHNSON of Texas. Mr. Speaker, I yield myself such time as I
may consume.
Mr. Speaker, I thank the gentleman from New York for his kind words
and support, and the support of all the Democrats, which has happened
in this House previously.
Mr. Speaker, the House has acted repeatedly on this issue. The
Committee on Ways and Means marked up a similar bill in the committee
on February 27. That has been a long time ago.
[[Page H10061]]
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In the full House we passed a similar bill on March 20 by a vote of
422-0. An amended version of this bill then passed the Senate by a vote
of 97-0, but it did not get out of conference. The House passed the
concept again on April 9 by voice vote, so I guess we are just having a
hard time keeping this bill narrow enough to get it enacted. It is so
narrow now, I do not think we could squeeze it any tighter.
I do not believe the problems with this bill rest on this side of the
Capitol. Unfortunately, House rules do not allow me to talk about where
the roadblocks are to enactment, but it is not on this side of the
Capitol.
I have a provision regarding military academy scholarships and
college savings plans that I would like to get enacted this year, but
if it would mean holding up, for even one more day, the elimination of
this immoral tax on military death benefits, I would forgo having any
other provisions added.
Frankly, I do not care what the reasons are for not having this
concept enacted into law, it is just wrong to tax military death
benefits. And as the gentleman from New York (Mr. McNulty) pointed out,
it is a minor tax bill. Let us pass this bill today with another strong
vote and get the job done before the end of this year. It is the least
we can do for the families who have lost a loved one in service to
their country. It is for America. We need to do it for America.
Mr. RENZI. Mr. Speaker, today the House is considering H.R. 3365, the
Fallen Patriots Tax Relief Act. I am moved by the bipartisanship that
has carried this bill through the House. The outstanding leadership of
my colleagues, Mr. Jones of South Carolina and Mr. McGovern of
Massachusetts, illustrates the dedication of this Congress to support
service members and their families who have sacrificed so much for this
great country. In addition, I want to thank the gentlemen for their
guidance on this bill and for their eager cooperation in drafting H.R.
3365.
This legislation will increase the death gratuity payment to $12,000
and will return the payment to its historical tax-exempt status. This
payment must remain a gift to surviving families as a gesture of a
grateful nation that dignifies their ultimate sacrifice of their loved
ones. At a time when our nation is sending its sons and daughters to
war, it is unconscionable to ask their families to shoulder a tax
burden on a gift of thanks intended to be free from taxation. It is
because of three of my constituents who gave their lives to defend our
freedom that I became involved with this legislation.
Spencer Karol, from Holbrook, Arizona, was a 20-year-old Army
Specialist with the 165th Military Intelligence Battalion. He enlisted
in the Army with two friends and was sent to Iraq. Specialist Karol
died when his vehicle was hit by an explosive device on patrol at Ar
Ramadi looking for enemy combatants on October 6, 2003. This
legislation would give Specialist Karol's mother the ability to meet
the funeral expenses of burying her eldest son.
Specialist Lori Piestewa, was assigned to the 507th Maintenance
Division, and was the first Native American woman killed in action.
Under current law, Lori's family must pay taxes on the death benefit
they have received. This legislation will correct this injustice.
Alyssa Peterson, a 27-year-old Army Specialist, was an athlete and
graduated at the top of her class. She was fluent in several languages
and gracious to her family and friends. I would like to share with you
an essay that this precocious young woman wrote when she was a fifth
grade student at Sechrist Middle School, in Flagstaff Arizona. She
wrote:
What is an American Patriot?
I believe that an American Patriot can be anyone who lives
in America. I think that no matter what anyone does with
their time, they can be a patriot each day. To be a patriot
you need to be a loyal American. You need to stand up for
what is right. You need to be the best person you can be.
A patriot needs to help America be a better place to live.
Cleaning up litter is being patriotic. Obeying traffic rules
is being patriotic. Helping our neighbors and giving of
ourselves is being patriotic. Participating in your school
activities is being patriotic, just like adults participating
in voting for our government leaders and laws is patriotic. A
patriot obeys all the laws of the land.
Patriotism is an attitude which shows up in our everyday
actions. No one needs to wait to be a patriot.
I commend Alyssa's words to your attention. It is now time to pass
this necessary legislation and pay proper tribute to those who have
served our nation.
Mr. SOUDER. Mr. Speaker, I come before you today in support of H.R.
3365, the Fallen Patriots Tax Relief Act. While there has been debate
over how strong our national defense should be in order to preserve the
freedom of others, I think you will find that everyone in this chamber
is in agreement when it comes to the treatment of our fallen soldiers
and their families. This bill would be an invaluable way of expressing
our country's gratitude to the brave men and women who have died giving
their last full measure of devotion.
In March of this year, Marine Lance Corporal David K. Fribley, from
Atwood, Indiana, and seven of his fellow Marines, were killed in the
opening march of Operation Iraqi Freedom. While the gratuity that is
owed to the Fribley family has historically been exempt from taxation,
an oversight in the tax code after 1991 left half of the $6,000
gratuity subject to taxation. Families who have had to suffer because
of the loss of a loved one are now being asked to pay taxes on what was
set up to be a one time, tax-free gift. It is for this reason and for
families like the Fribley's that I pledge my full support to this bill.
If adopted, this legislation would increase the gratuity payable to
survivors of deceased members of the armed forces to $12,000
retroactive to September 11, 2001, and would make the payment fully
tax-exempt.
As we carry on this struggle against evil, it is a most tragic fact
of war that we are sure to lose more young people like Lance Corporal
David Fribley. As they courageously make the sacrifice for our liberty
and the safety of our world, we must never fail to honor their memory
and see that their loss has not been in vain.
Mr. ORTIZ. Mr. Speaker, the bill we pass today is indeed the least we
could possibly do for the young men and women who have carried our
battle to the enemy in the global war in which we are engaged. We
should be ashamed that the Congress is only now providing enhanced
civil and economic protections for military personnel on active duty.
At a time when we are asking our military to carry an incredibly
heavy burden, the Congress is deeply concerned about making life as
easy as possible for our servicemembers and their families, and this
bill is the way to begin.
While our troops are on duty overseas and elsewhere, separated from
their families and--in the case of Guard and Reserve troops called up--
struggling on less salary than they make in the civilian world, we are
hopeful this legislation will help those military families better cope
with economic challenges.
This bill would increase the death gratuity payable to the families
of deceased members of the Armed Forces and to exclude such gratuity
from gross income. The intent is to assist surviving family of active
duty service members with immediate expenses following notification of
the death of a loved one.
This bill would double the death gratuity from $6,000 to $12,000 and
apply it retroactively to all deaths after September 10, 2001. The bill
would also exempt from taxation the full $12,000 payment. Currently,
only $3,000 of the current payment of $6,000 is exempt from taxation.
Given our experience here in South Texas in helping families who have
lost loved ones, I can tell you that this Congress can do much more
financially to ease their suffering, but I'm pleased that at least we
are no longer taxing their death benefits.
Mr. ALEXANDER. Mr. Speaker, I rise today in support of H.R. 3365/H.R.
3019 (Renzi/McGovern), the Fallen Patriots Tax Relief Act. I am a proud
cosponsor of both of these bills because they honor our fallen service
men and women. This bill doubles the military death benefit paid to
survivors of military personnel killed in the line of duty from $6,000
to $12,000. It also makes the $12,000 death benefit tax-free. The
change would be effective retroactive to deaths occurring on or after
September 11, 2001. (Under current law, the military death benefit is
$6,000, of which $3,000 is subject to federal tax). As a nation and as
Members of Congress, we need to do the best we can for the families of
the brave men and women who have made the ultimate sacrifice for our
country's freedom.
For the last several months, I have supported measures that give our
armed forces the resources necessary to provide our soldiers and their
families with a better quality of life. I have supported restoring the
child tax credit for the families of 260,000 children of active duty
military personnel. I also supported a provision on the house floor to
add a $1,500 bonus for troops serving in Iraq and Afghanistan.
Unfortunately, this provision failed on a tie vote. When Democrats
offered to transfer $3.6 billion from Iraqi reconstruction to providing
more support for our troops--including important quality-of-life
measures such as improved health care benefits I voted yes because I
believe that we should do all we can to protect and care for our men
and women in uniform. H.R. 3566/H.R. 3019 (Renzi/McGovern) is no
different. Support for our troops is a priority for me and I am proud
to support this benefit for their families.
I am glad that the Renzi/McGovern bill makes the military death
benefit tax-exempt. It is wrong that one-half of the military death
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benefit is currently subject to taxation. Families of patriots should
not be penalized on a benefit meant to show the nation's gratitude for
their sacrifice. We must restore the original intent of this benefit
and not unduly burden families with an unexpected tax bill. The death
benefit paid to the survivor of a military member has historically been
exempt from taxation. An oversight in the tax code after the gratuity
was increased to $6,000 in 1991 left half of this payment subject to
taxation. Only the passage of H.R. 3566/H.R. 3019 (Renzi/McGovern) will
remedy this unfair taxation problem for our military families.
I commend my colleagues Representatives McGovern and Renzi for
sponsoring this important measure, and I look forward to supporting
this bill and supporting our troops.
Mr. SAM JOHNSON of Texas. Mr. Speaker, I rise today in support of
H.R. 3365, the Fallen Patriots Tax Relief Act. It is important that we
get this bill enacted into law right away. It is unconscionable that a
knock at the door by a military chaplain is followed by a knock on the
door from the tax man. But sadly, this is the case.
I had the distinct honor of serving my country in the Air Force for
about 29 years. So my family and I know something about military life.
And my wife, Shirley, has said that one of her worst moments was when
the military chaplain pulled up in front of the house after I was shot
down in Vietnam, and her heart just stopped. She didn't know what they
were going to say, but she knew it was not going to be good.
I can't imagine the unspeakable despair of a family who just lost a
loved one in service of their country, only to be followed up by the
horror of a visit from the taxman. That is just wrong. So this bill
fixes that. Let us change this law today.
This bill permits the entire amount of the death benefit gratuity to
be tax free. It also increases the amount of the death benefit to
$12,000, which is more in line with the value of these benefits when
they were initially created. This is a clean bill. There is absolutely
no good reason for it to get fouled up in the same legislative
backwater that has stalled three previous versions of this bill.
You know, there a lot of good stories out there that don't get
reported. For example, I've heard of a company of marines that left
Iraq this summer without one casualty. That's great news. But, more
common is the news we see on T.V. As President Bush says, ``Iraq is
still a dangerous place.''
Sadly, nearly every day we hear of deaths in Iraq and other military
hot spots around the globe. In the two years since 9/11 it has been
increasingly important that we eliminate the unfair, immoral tax on the
death benefit a service member's loved ones receive from the Armed
Forces. In fact, this bill reaches back to that terrible day and also
applies to families who will be receiving a visit from a chaplain in
the future. I find it shameful that we continue to tax one-half of the
death benefits paid to families.
This must change before the end of the year. It is the least we can
do. These families have given the ultimate sacrifice for our country.
We must not take any more from them.
Ms. SOLIS. Mr. Speaker, I rise in strong support of H.R. 3365, the
Fallen Patriots Tax Relief Act.
The Fallen Patriots Tax Relief Act is a positive step in honoring the
men and women of the Armed Services, who have made the ultimate
sacrifice and given their lives while serving our country.
Unfortunately, the current death gratuity paid to the survivors of a
military member is not adequate to cover funeral expenses, leaving them
with the extra burden of covering these unexpected costs. The vast
majority of the men and women in uniform come from hard working low-
income backgrounds, whose families should not be expected to cover
these costs.
On October 13, 2003, Private Jose Casanova, Jr. became the second
constituent of mine to lose his life in Iraq.
The financial assistance provided to the Casanova family for burial
expenses was not sufficient. The family still had to pay money from
their own funds despite having the funeral home and the local police
department waive numerous fees and provide some services for free.
This situation is not acceptable. Military families, like the
Casanova family, deserve to be relieved of unnecessary financial costs
associated with their fallen family members' deaths. This is the least
we can do as a country.
In honor and in memory of our fallen patriots, I strongly urge my
colleagues to support this bill.
Mr. SAM JOHNSON of Texas. Mr. Speaker, I yield back the balance of my
time.
The SPEAKER pro tempore (Mr. Terry). The question is on the motion
offered by the gentleman from Texas (Mr. Sam Johnson) that the House
suspend the rules and pass the bill, H.R. 3365.
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. SAM JOHNSON of Texas. 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.
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