[Congressional Record (Bound Edition), Volume 147 (2001), Part 15]
[Senate]
[Pages 21922-21923]
[From the U.S. Government Publishing Office, www.gpo.gov]



                 SEPTEMBER 11 VICTIMS' TAX LEGISLATION

  Mr. TORRICELLI. Madam President, nearly 2 months have passed since 
the events of September 11. The tragedy and its ramifications have been 
part of the life of every American family in the weeks that have 
followed. Even American schoolchildren can recount not only the images 
but recite the numbers of the dead, the cost, and the consequences.
  In my State there are hundreds of people who did not come home on 
that night. The changes experienced by average Americans cannot 
obviously be compared with the families themselves--wives and husbands, 
children, brothers and sisters who are rebuilding shattered lives. They 
wake up every day reminding themselves of the new reality that will 
follow them throughout their lives.
  Recently, Senator Corzine and I met with a number of the widows and 
widowers. You can only imagine, if this entire Nation has found it 
difficult to accept the reality of these circumstances, what it is like 
for a young mother still recoiling from the experience of informing her 
children, or a father, now left to raise children alone.
  The pain of September 11 is measured on many scales. It has changed 
the finances of this Government. It has forever impacted our national 
sense of safety. But for these few thousand families, it has changed 
lives in ways we could never hope to understand.
  There is little in terms of the things that matter that any of us can 
do to generally offer comfort or consolation. But in the ways that 
Government can measure compassion, there are things we must try to do.
  Families that Jon Corzine and I met with indicated to us that when 
they are not dealing with the pain or the trauma, life has returned to 
much more mundane things: A woman who even as she buries her husband 
thinks about next month's mortgage; the young family who even when they 
are consoling their children are dealing with colleges or grade schools 
on next year's tuition; the young family who may have just started life 
together and bought a home or rented an apartment

[[Page 21923]]

and used all their resources; and now, as a mother thinks about her 
children's future, she is thinking about the groceries next week.
  America can afford to debate this issue philosophically and how it 
may have changed our laws or our lives. That luxury is not available to 
these young families.
  It raises in the Senate an important question about how we can 
respond. Some weeks ago the House of Representatives passed legislation 
to provide tax relief to families of these victims so that as these 
young mothers or fathers received their last paychecks or struggled to 
deal with the financial realities or negotiate perhaps bonuses from 
employers who are themselves struggling to deal with the impact, they 
can at least husband these resources without concern that the Federal 
Government will tax what they have remaining. That legislation has been 
sent to the Senate Finance Committee. These weeks we have been working 
to prepare it and have it ready for committee consideration.
  I want my colleagues to know that enough time has now passed. I am, 
on this day, introducing this legislation to the Senate. I will offer 
it as an amendment when the Senate Finance Committee meets tomorrow to 
consider stimulus and tax legislation as an amendment.
  I commend Senator Baucus for not only his support but his efforts in 
drafting this legislation. I also understand Senator Nickles wants to 
understandably change the legislation to include equitable treatment 
for the victims of Oklahoma City.
  The victims' tax legislation will essentially extend the benefits 
currently offered to military personnel and Government employees who 
die as a result of combat or terrorism to civilians abroad. The 
legislation will waive income tax liability for both this year and last 
year and will refund any income taxes paid in those years to the 
family.
  As I am certain my colleagues would agree, these funds are better 
used by families to rebuild their lives rather than used by the Federal 
Government at this moment.
  There is, however, the question of those employees who lost their 
lives and their families who may have had income so modest, they did 
not pay Federal income tax. Under my legislation, which improves upon 
the version of the House of Representatives, the Senate bill I am 
introducing will refund 2 years' worth of payroll taxes to families of 
those who lost their lives on September 11.
  I have also drafted legislation to include significant estate tax 
relief for families by exempting the first $3 million in assets from 
both Federal and State estate taxes and $8.5 million from Federal 
estate tax.
  These are the funds these families will use for this generation and 
perhaps succeeding generations to bring order and security to their 
lives. They should keep this money. It is not for us. If this is the 
last and only gift a mother or father had to give to their children or 
husband, or wife to their spouse, that is as it should be. It is not 
for us.
  Current law excludes disability benefits from income if a U.S. 
employee is injured in a terrorist attack outside the United States. 
This legislation will also expand this to include those injured in a 
terrorist attack in the United States.
  Every Member of the Senate should feel proud to be part of this 
legislation. We have offered assistance to the States of Virginia and 
New York and New Jersey because of the terrorist attacks. We have 
offered relief to the airline industry to save them from bankruptcy. 
There is debate now on what should be done for the insurance industry. 
These things may all be right and proper. They are not complete.
  No financial arrangement, no change of the law could possibly be 
complete unless we address the question of families themselves. Senator 
Corzine and I made a solemn pledge to these families that we would not 
rest until this is done. I can assure you that promise will be kept. 
There is little else this Government can offer these people. This much, 
Madam President, we can and should do.

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