[Congressional Record (Bound Edition), Volume 147 (2001), Part 6]
[House]
[Pages 8080-8082]
[From the U.S. Government Publishing Office, www.gpo.gov]



           FALLEN HERO SURVIVOR BENEFIT FAIRNESS ACT OF 2001

  Mr. RAMSTAD. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 1727) to amend the Taxpayer Relief Act of 1997 to provide 
for consistent treatment of survivor benefits for public safety 
officers killed in the line of duty, as amended.
  The Clerk read as follows:

                               H. R. 1727

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Fallen Hero Survivor Benefit 
     Fairness Act of 2001''.

     SEC. 2. CONSISTENT TREATMENT OF SURVIVOR BENEFITS FOR PUBLIC 
                   SAFETY OFFICERS KILLED IN THE LINE OF DUTY.

       Subsection (b) of section 1528 of the Taxpayer Relief Act 
     of 1997 (Public Law 105-34) is amended by striking the period 
     and inserting ``, and to amounts received in taxable years 
     beginning after December 31, 2001, with respect to 
     individuals dying on or before December 31, 1996.''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Minnesota (Mr. Ramstad) and the gentleman from New York (Mr. McNulty) 
each will control 20 minutes.
  The Chair recognizes the gentleman from Minnesota (Mr. Ramstad).
  Mr. RAMSTAD. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, we cannot be considering this important legislation on a 
more appropriate day. Today is Peace Officers Memorial Day. Each year, 
on May 15, America honors the men and women in law enforcement who have 
given their lives to keep the American people safe in their communities 
and on their streets. More than 15,400 brave public safety officers 
have made the ultimate sacrifice since our Nation was founded.
  We just considered a resolution honoring these fallen heroes. Now it 
is time to honor our public safety officers killed in the line of duty 
by offering tangible help to their loved ones left behind. This is 
exactly what the legislation before us does.
  The Fallen Hero Survivor Benefit Fairness Act provides tax-free 
benefits to families of all public safety officers killed in the line 
of duty regardless of when the officer was killed. This bill, Mr. 
Speaker, includes law enforcement officers, firefighters, rescue 
squads, ambulance crews and employees working in disaster or emergency 
areas.
  Under present law, a gross inequity exists because survivor benefits 
are treated differently, depending on when the public safety officer 
died. Currently, survivor benefits are tax free only if a public safety 
officer died in the line of duty after December 31, 1996.
  This inequity, Mr. Speaker, arose from the Taxpayer Relief Act of 
1997 because of revenue constraints. Pursuant to an amendment to that 
legislation offered by the gentlewoman from Florida (Mrs. Thurman) and 
me, families of officers killed in the line of duty became eligible to 
receive survivor benefits tax free for the first time.
  Unfortunately, however, because of the revenue limitations at the 
time, the tax-free benefits were limited to officers killed after 
December 31, 1996.
  As a result, Mr. Speaker, families of our law enforcement heroes, our 
fallen heroes, are being treated differently by the Tax Code depending 
on when the officer was killed. I think all of us in this body and all 
Americans agree that it is absolutely unconscionable to discriminate 
against survivors of fallen officers simply because their husband, 
wife, or parent officer died before 1997.
  The bill before us today is based on an amendment I offered 2 years 
ago in the Committee on Ways and Means, which was unanimously adopted 
in the Taxpayer Refund and Relief Act of 1999. That provision passed 
both the House and Senate, but unfortunately the President at the time 
vetoed the larger bill.
  I want to express my gratitude to the gentleman from California 
(Chairman Thomas) for expediting H.R. 1727 in the Committee on Ways and 
Means. I want to also thank the 13 bipartisan members of the committee 
who joined me in sponsoring this bill and to the other sponsors, 
especially the gentleman from New Hampshire (Mr. Sununu), the 
gentlewoman from Florida (Mrs. Thurman), and the gentleman from 
Michigan (Mr. Stupak), who have worked on this issue over the years.
  I am also grateful to the more than 20 State and national law 
enforcement organizations who sent letters in support of this important 
legislation. But most of all, Mr. Speaker, I am eternally grateful to 
the fallen heroes and their families we honor today.
  As cochair of the Congressional Law Enforcement Caucus, I understand 
the risks and sacrifices made by our officers every time they put on 
their badge. Over the past 15 years, I have spent over 1,600 hours 
riding with Minneapolis and suburban police back home. I have 
accompanied high-risk entry teams on 65 search warrants. So I have 
seen, firsthand, officers in harm's way simply because they are doing 
their job to keep our streets and communities safe.
  Each year, an average of 62,000 assaults are committed against peace 
officers, resulting in more than 21,000 injured officers. On the 
average, it was just said by the previous speakers, an officer is 
killed every 57 hours in America. Just last year, 150 peace and police 
officers gave their lives, which represents, by the way, a 12 percent 
increase in police fatalities over the previous year.
  The average age of slain peace officers is only 38 years. Seventy-two 
percent of these officers were married, and the largest percentage had 
young children.
  Of course the financial hardship on these families can be devastating 
on top of dealing with an unbearably painful loss.
  So, Mr. Speaker, let me conclude by saying this legislation, H.R. 
1727, is long overdue. Just a few short hours ago, a memorial service 
for fallen police officers was held here at the Capitol. Flags on all 
Federal buildings are currently flying at half-staff. It is time to 
honor our fallen heroes with deeds as well as words.
  I urge my colleagues to support this bill which will ensure that all 
families, all families of slain police officers receive survivor 
benefits tax free, regardless of when the officers were killed. It is 
the very least we can do for families of our fallen heroes who have 
made the ultimate sacrifice.
  Mr. Speaker, I reserve the balance of my time.
  Mr. McNULTY. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, today H.R. 1727 comes to the House with strong 
bipartisan support. This bill was approved by the Committee on Ways and 
Means by unanimous vote. I strongly support this legislation.
  H.R. 1727 would bring fairness to our Tax Code for a small but very 
special group of taxpayers. The bill would extend uniform tax treatment 
to certain payments received by the surviving spouse or children of a 
public safety officer killed in the line of duty. This legislation 
would extend current-law treatment to amounts paid under a survivor 
annuity with respect to a public safety officer killed in the line of 
duty before December 31, 1996 with respect to payments received after 
December 31 in the year 2001.
  The Tax Relief Act of 1997 provided that amounts paid pursuant to a 
survivor annuity with respect to public safety officers who were killed 
in the line of duty are excluded from the income of the officer's 
surviving spouse or children if the officer's death occurred on or 
after December 31, 1996. The annuity must be provided under a 
government plan.
  For this purpose, public safety officers include, not only law 
enforcement officers, but also firefighters, rescue squad members, or 
ambulance crews.

[[Page 8081]]

  As demonstrated under present law, this tax treatment is provided for 
annuity payments received with respect to public safety officers who 
lose their lives due to risks inherent in their jobs. These officers 
risked their lives on a daily basis to protect our families and our 
communities. This sacrifice obviously is shared by their families.
  Under H.R. 1727, we are acknowledging that, when a public safety 
officer is killed in the line of duty, the officer's family has paid 
the ultimate sacrifice. The sacrifice is no less great because the 
officer was killed before December 31, 1996.
  This is why H.R. 1727 extends current law to families of all officers 
killed in the line of duty without regard to date of death. All 
surviving spouses and all children of public safety officers killed in 
the line of duty should receive the same tax treatment.
  H.R. 1727 provides that all payments received under a survivor 
annuity as prescribed above after December 31, 2001 would be excluded 
from income.
  I urge all of my colleagues to support H.R. 1727 in the name of all 
of those who put their lives on the line for us 365 days a year.
  Mr. Speaker, I reserve the balance of my time.
  Mr. RAMSTAD. Mr. Speaker, I am pleased to yield 1 minute to the 
gentleman from New Hampshire (Mr. Sununu), an important cosponsor of 
this legislation, a strong advocate to law enforcement, and a fellow 
member of the Law Enforcement Caucus.
  Mr. SUNUNU. Mr. Speaker, it is a great privilege to rise in support 
of the Fallen Hero Survivor Benefit Fairness Act. I want to begin by 
thanking the gentleman from Minnesota (Mr. Ramstad), who is chairman of 
the Law Enforcement Caucus and who has worked hard and successfully to 
bring this important bill through the Committee on Ways and Means and 
to the floor.
  As he and previous speakers have indicated, this legislation extends 
the tax-free treatment to the survivors of those law enforcement 
officers and public safety officers lost in the line of duty, not just 
for those lost after 1996. It makes good sense. It is fair. It is just.
  Especially during a week when we honor law enforcement officers and 
those who have fallen in the line of duty, it is an important gesture, 
a step forward that gives them the financial security and the piece of 
mind they so justly deserve.
  I introduced similar legislation 2 years ago with the gentleman from 
Michigan (Mr. Stupak) after sharing the stories with several families 
in New Hampshire that faced the consequences of having lost a loved one 
serving in the line of duty prior to 1996.
  It is my pleasure to support the legislation, and it is a pleasure to 
step forward on a piece of legislation that has such a bipartisan 
commitment behind it. I thank my colleagues for their support.
  Mr. McNULTY. Mr. Speaker, I am pleased to yield such time as he may 
consume to the distinguished gentleman from Michigan (Mr. Stupak), a 
friend, a colleague, and a former police officer who himself put his 
life on the line for the folks in his community.
  Mr. STUPAK. Mr. Speaker, I thank the gentleman from New York for 
yielding me this time.
  Mr. Speaker, I want to thank the gentleman from Minnesota (Mr. 
Ramstad), my colleague and cochair of the Law Enforcement Caucus, for 
his hard work on this resolution and the gentleman from New Hampshire 
(Mr. Sununu) and the gentleman from New York (Mr. McNulty) and all the 
members of the Committee on Ways and Means for bringing this 
legislation to the point where we are today.
  Public safety officers put their lives on the line every day to 
protect and serve the people of this country. Yet, unbelievably enough, 
until 1997, survivor benefits for public safety officers who died in 
the line of duty were subject to Federal income taxes. The families, 
loved ones had done so much for this country, and their spouses and 
children sacrifice as well, yet the Federal Government would tax the 
benefits they so need.

                              {time}  1530

  In 1997, as I attended the Police Officers Memorial, I was made aware 
of this injustice of taxing survivor benefits. Because of the quirk in 
the law, those law enforcement officers who were disabled, their 
benefits were not taxed; yet those who died, their benefits were taxed 
by the Federal Government. So I spoke then with the co-chair of the 
Congressional Law Enforcement Caucus, the gentleman from Minnesota (Mr. 
Ramstad). We spoke with the President, got the support of the 
administration; we worked with members of the Committee on Ways and 
Means, especially the gentlewoman from Florida (Mrs. Thurman); and we 
moved legislation to try to correct this injustice. The Congressional 
Law Enforcement Caucus wholeheartedly supported it.
  In 1997, Congress started to fix this serious problem. The Taxpayers 
Relief Act of 1997 provided that the survivor benefits of officers 
killed on or after December 31, 1996, would not be subject to taxation. 
However, we had budget constraints back then; and we could not extend 
this legislation to everyone. But we did not give up. These were not 
minor omissions. The bill left numerous deserving families without 
assistance.
  I am pleased to report that through this legislation today, authored 
by my colleague, the gentleman from Minnesota (Mr. Ramstad) and my 
cochairman of the Congressional Law Enforcement Caucus, who has worked 
so hard on this issue, we now have this bill for passage before the 
House of Representatives. Today, we close this unfair loophole by 
ensuring that the survivor benefits of all officers, regardless of the 
date they perished, will be exempt from taxes.
  We must provide for those families that have suffered the devastating 
loss of losing their loved ones to the call of duty. These families 
deserve our support when the unthinkable happens and their loved one is 
struck down. We have to look out for them, just as their husbands, 
their wives, their mothers, and fathers look out for us every day, 
risking their commitments to their families for the greater commitment 
they have made to this country.
  Mr. McNULTY. Mr. Speaker, I yield myself such time as I may consume 
to simply say that in the name of basic tax fairness and on behalf of 
all of the survivors of the heroes who put their lives on the line and 
gave their lives for our communities, I urge all of my colleagues to 
support this legislation.
  Mr. Speaker, I have no further requests for time, and I yield back 
the balance of my time.
  Mr. RAMSTAD. Mr. Speaker, I yield myself such time as I may consume 
to again thank my co-chair of the Congressional Law Enforcement Caucus, 
the gentleman from Michigan (Mr. Stupak), and the gentleman from New 
York (Mr. McNulty), the gentlewoman from Florida (Mrs. Thurman), and 
the 13 other Ways and Means colleagues who cosponsored this important 
legislation. I also want to thank the gentleman from New Hampshire (Mr. 
Sununu) again for his hard work on this issue and the gentleman from 
California (Mr. Thomas), the chairman of the Committee on Ways and 
Means, for expediting this legislation at my request.
  This is the least we can do, Mr. Speaker, for our fallen law 
enforcement heroes and other public safety officers killed in the line 
of duty, to give all of the survivors of public safety officers who 
give their lives for our public safety the tax-free benefits regardless 
of when their officer relative was killed. So I urge Members to support 
this important legislation.
  Mr. DeLAY. Mr. Speaker, current law unfairly divides our fallen 
heroes into two camps. Officers who sacrificed their lives after 1997 
are granted the fair and reasonable recognition of allowing their 
families to draw survivor benefits without paying taxes on the 
benefits.
  Society recognizes that officers who make the supreme sacrifice 
deserve to be treated in a special way through this provision, which is 
designed to express our gratitude to the surviving family members.

[[Page 8082]]

  Unfortunately, this distinction does not currently apply to the 
surviving families of officers who fell before January 1987. The law 
discriminates against these law enforcement officers because it denies 
their families the right to draw their survivor's benefits without 
taxes.
  We need to treat all of our fallen officers equally. We should single 
out those brave officers who give their lives protecting society. We 
should demonstrate a special reverence for their demanding and 
dangerous work as law enforcement officers. Easing the burden on 
surviving family members is a fair and appropriate gesture to convey 
our thanks and respect. Members should show our appreciation by 
supporting this legislation.
  Mr. RAMSTAD. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Barr of Georgia). The question is on the 
motion offered by the gentleman from Minnesota (Mr. Ramstad) that the 
House suspend the rules and pass the bill, H.R. 1727, as amended.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds of 
those present have voted in the affirmative.
  Mr. RAMSTAD. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.

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