[Congressional Record (Bound Edition), Volume 145 (1999), Part 13]
[Senate]
[Pages 19103-19104]
[From the U.S. Government Publishing Office, www.gpo.gov]



                      HOLOCAUST SURVIVORS' ASSETS

  Mr. ABRAHAM. Mr. President, I rise today to discuss the Holocaust Era 
Assets Tax Exclusion Act amendment to the Taxpayer Relief Act of 1999. 
I am pleased that this amendment was cleared on both sides of the aisle 
and has been accepted by the full United States Senate. The passage of 
the Abraham-Fitzgerald-Moynihan-Schumer Holocaust Era Assets Tax 
Exclusion Act amendment by unanimous consent, demonstrates beyond 
shadow of a doubt the United States Senate's firm solidarity with those 
who suffered during the Holocaust. In addition, I would like to offer 
my sincere gratitude to Chairman Roth for his leadership and support 
during this process, without which we might not have had this 
opportunity to pass such important legislation.
  The passing decades have not obscured the horrors of the Nazi regime 
and the horrors it committed during its 12 years in power. Many people 
in America and around the world live every day with memories of 
atrocities they suffered during this terrible time. Rounded up, placed 
in ghettoes or death camps, left to starve or tortured and murdered, 
millions had their lives taken from them, figuratively and literally.
  We must never forget these atrocities. Thanks to the hard work of 
many, particularly within the Jewish community, we have numerous 
reminders of this inhumanity which can and should increase our 
awareness and our commitment to preventing any such events from 
occurring ever again. But there is more that we must do. Only recently 
has public attention been properly directed toward another great crime 
of the Nazi regime and those who cooperated with it: the systematic 
looting of Jewish economic assets. In addition to committing outright 
theft and looting, the Nazis seized liquid assets that could be 
converted easily into cash, such as insurance policy proceeds and bank 
accounts. Documents discovered over the past several years show that 
the Nazis specifically targeted insurance policies held by Jews as a 
source of funding for their expansionist, totalitarian regime.
  I am sorry to say that some insurance companies also specifically 
(and illegally) targeted Jewish families. Knowing that Jewish policy 
holders soon would be taken to concentration camps, these firms sold 
specifically tailored policies, taking as much cash as possible up 
front, with no intention of honoring their obligations.
  After the war, Holocaust survivors struggling to restart their lives 
tried

[[Page 19104]]

to collect on their policies, access their bank accounts and/or reclaim 
assets that had been illegally seized from them. Unfortunately, 
governments, banks, and insurance companies failed to fulfill their 
duty to treat Holocaust victims with justice and dignity. Instead, they 
refused to honor policies or return stolen assets. In this way, 
survivors of the Holocaust were victimized twice, first by the Nazis, 
then by the financial institutions that deprived them of their assets.
  Today, after over 50 years of injustice, Holocaust survivors and 
their families are finally reclaiming what is rightfully theirs. It is 
high time these victims of oppression finally got back some of the 
property stolen from them. It also is time, in my view, that the rest 
of us stood up to protect them from further raids on their assets. 
Under current law, any money received by Holocaust survivors in their 
settlements with banks and other organizations that once cooperated 
with the Nazis is treated as gross income for federal tax purposes. And 
that's just plain wrong.
  My colleagues and I offer this amendment to prevent the federal 
government from imposing income tax on any settlement payments, 
received by Holocaust survivors or their families resulting from a 
Holocaust claim. We do so because we feel it is morally imperative that 
we stand with the victims of this injustice, and that this nation not 
treat as income what is in fact the return of what had been stolen.
  Specifically, our amendment would allow a Holocaust survivor or the 
surviving heirs to receive a tax exemption for any monies received as 
payment resulting from a Holocaust claim from any international fund 
for survivors.
  This would include settlements from the action ``In re Holocaust 
Victims' Asset Litigation'' or any other similar lawsuit, including 
actions already settled.
  Also included would be the value of any land recovered from a foreign 
government as a result of a settlement arising out of the illegal 
confiscation of such land in connection with the Holocaust.
  The victims of the Holocaust have suffered far too much for any such 
taxation to be just. These settlements represent but a fraction of what 
is owed to those who suffered under Nazi tyranny. To treat them as 
income subject to taxation would be to add a new injury to the old.
  Mr. President, we cannot undo the evil acts of the Nazi regime. But 
we can put ourselves firmly on the side of those who suffered so 
unjustly by passing this amendment. By excluding Holocaust settlement 
monies from taxation, we will show that we understand what justice 
demands of us as we face the continuing consequences of an unjust 
regime.

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