[Congressional Record Volume 151, Number 114 (Tuesday, September 13, 2005)]
[Senate]
[Pages S9988-S9989]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. GRASSLEY (for himself, Mr. Baucus, Mr. Lott, Ms. Landrieu, 
        Mr. Vitter, Mr. Cochran, and Mr. Shelby):
  S. 1696. A bill to provide tax relief for the victims of Hurricane 
Katrina, to provide incentives for charitable giving, and for other 
purposes; to the Committee on Finance.
  Mr. President, a little over 2 weeks ago, the Gulf Coast region 
endured a tragedy of historic proportions. I have heard personal 
accounts of how Americans across this country have come together in a 
communal effort to help those affected. Congress needs to come together 
to pass tax relief that will help those in need.
  The total damage left in the wake of Hurricane Katrina is unknown. 
But the latest numbers are overwhelming. 377,000 displaced persons are 
spread across 33 States and the District of Columbia. They have sought 
refuge in shelters, hotels, homes, and with family all over the 
country. They are hungry. They are homeless. And they need our 
immediate help.
  Millions of Americans immediately swung into action to help by 
donating goods, time, and money to their Gulf Coast neighbors. In my 
home State of Montana, thousands have risen to the occasion to offer a 
helping a hand to those who have been hit by the effects of Hurricane 
Katrina.
  Four firefighters have been dispatched from Kalispell to New Orleans 
to act as community liaisons. Forty-four Montana Red Cross volunteers 
are already assisting Katrina victims.
  Students at Rose Park Elementary School in Billings are making 
handmade cards to raise money. Players and coaches of the Billings 
Bulls hockey will hold an auction next week. Each will provide one 
day's worth of labor and the proceeds will go directly to the Red 
Cross.
  In Three Forks, volunteers with the Veterans for Foreign Wars and Boy 
Scouts will be combing the streets with buckets asking for donations.
  In Bozeman, the local National Guard members and Gallatin County 
emergency service workers collected

[[Page S9989]]

cash donations from spectators at the first Montana State University 
home football game last Saturday. Immediately after the game, a free 
concert took place and the Red Cross was present to accept 
contributions.
  The Gallatin County Sheriff's Office sent 120 dolls and blankets to 
children caught in the disaster.
  The Greater Gallatin United Way has decided to ``adopt'' Alexandria, 
Louisiana, a town that has taken in more than 6,500 evacuees, in an 
effort to focus its giving on one geographic area. Mount Ellis Academy 
students raised nearly $10,000 for the United Way last Sunday 
afternoon.
  And businesses are also rising to the cause. Ag Express, a Billings-
based trucking company, is collecting donations of clothing, blankets, 
diapers, water and other supplies. The company is working with FEMA and 
plans to leave Thursday to deliver the load to Baton Rouge, LA.
  Wheat Montana Bakery, Carpet One and Corcoran Trucking worked 
together to send 4,600 loaves of bread and 41,000 hamburger buns to the 
Astrodome in Houston, TX.
  In Three Forks, Hegar's Septic Service is giving $5 to the Red Cross 
for every septic tank it pumps.
  First Security Bank in Bozeman, MT is sending a freight truck with 
bottled water and medical supplies. They are also donating eight ATM 
machines to the Louisiana Banker Association. They will be hooked up to 
temporary banking stations in areas that already have electricity.
  Mr. President, I am proud of the spirit and generosity of the 
citizens and businesses of Montana and across this country. It is with 
this spirit in mind that I offer a tax relief package for the victims 
of this tragedy. My good friend Senator Grassley and I worked closely 
with our Senate Colleagues in this effort. All six Senators from the 
affected States are cosponsors.
  The relief package is aimed at four needs of the victims of the 
hurricane. One, they need cash and they need it fast. Two, they need 
jobs. Three, they need decent housing. And four, charities need help 
from Congress so they can help the victims of the hurricane.
  First, displaced persons need money. Some of these displaced persons 
left everything behind. They need cash to buy basic essentials such as 
food and water.
  Our bill allows victims of Hurricane Katrina to access retirement 
accounts for immediate cash assistance. Under current law, there is a 
10 percent penalty for early distributions of money in these accounts. 
We waive that penalty and allow displaced persons to re-contribute to 
the retirement account over a 3-year period.
  Second, many of these displaced persons want to get back into the 
workforce. We provide businesses with the tools they need to hire 
displaced workers. The Work Opportunity Tax Credit allows employers to 
claim a credit against wages paid to new workers that face barriers to 
employment. It applies to low-income families, veterans and other 
targeted groups. We expand the Work Opportunity Tax Credit to cover all 
survivors of Hurricane Katrina who lived in the disaster zone and 
became unemployed as a result of the hurricane.
  We also allow employers located in the disaster zone to take a 40 
percent tax credit on wages paid to employees on the first $6,000 of 
pay.
  Third, the people affected by this tragedy need shelter. They need a 
warm, safe place to rest. Many folks across the country have opened up 
their hearts and opened up their homes. But it is not easy. It means 
extra living expenses--the water bill will be higher, the electric bill 
will be higher, and the grocery bill will be higher. This is a 
considerable burden that folks are doing voluntarily, out of the 
goodness of their hearts. We need to help.
  That's why we allow individuals to claim an additional personal 
exemption of $500 for each displaced person they shelter for a minimum 
of 60 days. This money will help offset the costs incurred by these 
generous individuals.
  Finally, the victims need the generosity of individuals and 
businesses across this country. There has been a surge in giving to 
charitable organizations and we should encourage this activity. Our 
bill provides incentives for corporations to increase gifts of cash, 
food, books and other items sorely needed in the affected areas and 
communities.
  We also allow taxpayers to transfer money in retirement accounts to a 
charitable organizations tax free.
  The Nation is depending on Congress to act, and to act quickly. I 
think we have responded with a good bill that provides swift relief for 
the millions affected by this catastrophe.
  Hurricane Katrina will exacerbate the existing problems of poverty 
and the working poor. The images we have seen of Katrina's poverty-
stricken victims over the last few weeks should serve as a wake-up call 
to policymakers--we must do more to help them help themselves.
  I am currently drafting changes to the tax code which will enhance 
current incentives for the working poor and especially those with 
children. I look forward to working with my Colleagues in this effort 
as we continue to help those affected by Hurricane Katrina get back on 
their feet.

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