[Congressional Record Volume 149, Number 157 (Monday, November 3, 2003)]
[Senate]
[Pages S13833-S13834]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
GIVING PRIORITY TO PASSING TAX RELIEF LEGISLATION FOR MILITARY
PERSONNEL
Mr. McCONNELL. Mr. President, I ask unanimous consent that the Senate
proceed to the immediate consideration of S. Res. 257, submitted
earlier today by Senator Landrieu.
The PRESIDING OFFICER. The clerk will report the resolution by title.
The legislative clerk read as follows:
A resolution (S. Res. 257) expressing the sense of the
Senate that Congress should give priority to passing
legislation to provide tax relief for United States military
personnel and should offset the cost of such tax relief with
legislation preventing individuals from avoiding taxes by
renouncing United States citizenship.
There being no objection, the Senate proceeded to consider the
resolution.
Ms. LANDRIEU. Mr. President, today the Senate passed the Military Tax
Fairness Act of 2003, about $1.1 billion in tax relief for our military
families. I support this bill. We all support this bill. In fact, we
passed this unanimously or near unanimously on a coupe of previous
occasions. We are visiting this bill again today because the House of
Representatives does not like the offset we used to pay for the bill.
We paid for it by taxing individuals who renounce their United States
citizenship in order to avoid paying U.S. taxes.
It is astounding to me that this bill keeps getting bounced back and
forth between the Senate and the other body over this issue. We are
talking about tax relief for military families and we want Americans
who are exploiting tax loop holes to step up and make that relief
possible. Most of these people have known great financial success. They
were blessed by the economic opportunity that our nation's liberty
gives us and the free enterprise system which make those fortunes
possible.
[[Page S13834]]
Those blessings were secured by our military personnel. Every year, the
United States Treasury loses about $80 million on individuals who
decide that they would prefer to have their cake and eat it too. They
want American markets, they want American prestige, they want American
stability, but they do not want the obligations that accrue to American
citizenship. All the Senate was saying is if you benefited from this
nation's security, you should be willing to pay for it.
When the Senate first considered this legislation, I had hoped to
include a tax credit for the private sector employers of our National
Guard and Reserve. When our Guard and Reserves answer the call to serve
they leave jobs, homes, and most of all, their families behind. Many
employers continue to pay all or part of the salaries of those
employees who get called up. My legislation would provide those
patriotic employers with a tax credit for paying up to 50 percent of
the salaries for their Guard and Reserve employees.
I understand that my legislation cannot be included in this bill. So
I am introducing a sense of the Senate resolution to put us on record
as supporting these employers. The resolution states that we should pay
for this tax credit by closing the expatriation loophole.
The facts are simple, and they are laid out in this resolution. Since
2001, the President has signed tax cuts amounting to $1.75 trillion.
Today, military families will get their first taste at direct relief.
Yet, this bill amounts to less than .1 percent of the tax relief that
the Government has doled out. No one could justify this to voters. So
it's been happening behind closed doors--in conference reports, and
parliamentary maneuvering. This resolution is a first step to putting a
bright, hot spotlight on the truth. The leadership of the House Ways
and Means Committee is more interested in protecting expatriate
corporations, than it is in providing meaningful tax benefits to the
men and women of our Armed Forces.
I am glad for what we are doing in this bill, but there is so much
more that can be done and should be done. Personally, I believe that a
military tax vehicle should be used to discuss military tax issues.
However, the Senate cannot stand in the way of immediate relief to the
families of those who have given the ultimate sacrifice in battle. For
that reason, we are passing this resolution today to send a signal that
this imbalance must come to an end.
I appreciate the chairman and ranking member of the Finance Committee
for agreeing to this resolution in conjunction with the underlying
bill. I look forward to working with them in the future on giving this
tax relief to America's employers.
Mr. McCONNELL. Mr. President, I ask unanimous consent that the
resolution and preamble be agreed to en bloc, that the motion to
reconsider be laid upon the table, and that any statements relating to
the resolution be printed in the Record, without intervening action or
debate.
The PRESIDING OFFICER. Without objection, it is so ordered.
The resolution (S. Res. 257) was agreed to.
The preamble was agreed to.
The resolution, with its preamble, reads as follows:
S. Res. 257
Whereas Congress is responsible for providing United States
military personnel with the equipment, supplies, and other
resources needed to preserve our freedom;
Whereas Congress is responsible for providing United States
military personnel with a comprehensive compensation package;
Whereas, since 2001, Congress has passed and the President
has signed legislation providing for $1,750,000,000,000 in
tax relief;
Whereas the Senate has passed legislation providing for
$1,100,000,000 in additional tax relief for United States
military personnel and their families;
Whereas United States citizens benefit from economic
opportunities which arise from the liberty protected by
United States military personnel;
Whereas the United States loses approximately $80,000,000
per year in tax revenue from individuals who renounce United
States citizenship;
Whereas the Senate has unanimously passed legislation which
prevents individuals from avoiding taxes by renouncing United
States citizenship as an offset to the cost of providing tax
relief for the 1,400,000 active duty military personnel and
the 1,200,000 members of the National Guard and Reserves; and
Whereas Congress has asked the Comptroller General of the
United States to conduct a study on the total compensation
package provided for United States military personnel in
order to ensure that the unique needs of military personnel
are addressed: Now, therefore, be it
Resolved, That it is the sense of the Senate that--
(1) Congress should give priority to passing legislation to
provide tax relief for--
(A) United States military personnel, including those
serving in the National Guard and Reserves; and
(B) the employers of active duty members of the National
Guard and Reserves; and
(2) the cost of such tax relief should be offset by
legislation which prevents individuals from avoiding taxes by
renouncing United States citizenship.
____________________