[Congressional Record Volume 154, Number 86 (Friday, May 23, 2008)]
[Extensions of Remarks]
[Pages E1077-E1078]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         HEROES EARNINGS ASSISTANCE AND RELIEF TAX ACT OF 2008

                                 ______
                                 

                               speech of

                          HON. BETTY McCOLLUM

                              of minnesota

                    in the house of representatives

                         Tuesday, May 20, 2008

  Ms. McCOLLUM of Minnesota. Mr. Speaker, I rise in strong support of 
H.R. 6081, the Heroes Earnings Assistance and Relief Tax (HEART) Act 
and to commend Speaker Pelosi and Chairman Rangel for their 
perseverance in getting this important bill to the President's desk.
  H.R. 6081 includes vital tax provisions that help military families 
facing significant financial hardships due to extended deployments. 
According to a Department of Defense survey, 55 percent of married 
National Guardsmen and Reservists suffer a loss of income when they are 
called to active duty. The Heart Act helps to fix this problem by 
providing a tax credit of up to $4,000 for small businesses that 
continue to pay National Guard and Reserve employees when they are 
called to serve.
  This important bill makes permanent several IRS provisions that 
relieve economic hardships as a result of military service including 
the Earned Income Tax Credit for families of soldiers in combat. H.R. 
6081 also allows more military families to be eligible for the economic 
stimulus rebates and makes it easier for veterans to become homeowners 
through low-interest loans.
  The Heart Act is fully offset and will not increase our national 
debt. It pays for these tax breaks by closing an offshore loophole that 
allows government contractors, who receive millions or billions in 
taxpayers' dollars, to set up companies in foreign countries to avoid 
paying Social Security and Medicare taxes. For example, defense 
contractor KBR, has reportedly avoided paying over $100 million in 
Social Security and Medicare taxes by creating

[[Page E1078]]

shell companies in the Cayman Islands. H.R. 6081 also stops tax 
benefits for Americans who renounce their citizenship in order to avoid 
paying U.S. taxes.
  The men and women of the armed forces who serve this country with 
honor during times of war should be assured that their families will 
not suffer financially from being deployed. I urge my colleagues to 
support this important bill.

                          ____________________