[Congressional Record (Bound Edition), Volume 149 (2003), Part 19]
[Extensions of Remarks]
[Page 26140]
[From the U.S. Government Publishing Office, www.gpo.gov]




                 INCREASING THE MILITARY DEATH GRATUITY

                                 ______
                                 

                           HON. MAXINE WATERS

                             of california

                    in the house of representatives

                       Tuesday, October 28, 2003

  Ms. WATERS. Mr. Speaker, I rise to urge my colleagues to support and 
pass Congressman McGovern's bill, H.R. 3365, which would increase the 
military death gratuity from $6,000 to $12,000 and make the entire 
benefit tax exempt. I am proud to be a cosponsor of this bill and hope 
that Congress will act swiftly to pass it.
  It is wrong that one-half of the military death benefit is currently 
subject to taxation. Families of patriots should not be penalized by 
being taxed on a benefit meant to show the nation's gratitude for their 
family member's sacrifice. We must restore the original intent of this 
benefit and not unduly burden families with an unexpected tax bill. The 
death benefit paid to the survivor of a military member has 
historically been exempt from taxation. An oversight in the tax code 
after the gratuity was increased to $6,000 in 1991 left half of this 
payment subject to taxation. Only the passage of H.R. 3566 or H.R. 3019 
will remedy this unfair taxation problem for our military families.
  Mr. Speaker, as a nation and as Members of Congress, we need to do 
all that we can for the families of the brave men and women who have 
made the ultimate sacrifice for our country's freedom.
  The death benefit was designed to assist survivors of deceased 
members of the military with their financial needs during the period 
following the soldier's death and before other survivor benefits become 
available. For many families of active duty military personnel, the 
current benefit is not enough to cover necessary immediate family 
expenses. This is due, in part, to the payment now being subject to 
taxation, and to families' financial distress due to longer and longer 
deployments. The latter is especially true in the case of our National 
Guard and Reserves, whose military salaries rarely match their civilian 
incomes. For these reasons, it is essential to provide a substantial 
increase in the death benefit and return it to its tax-exempt status.
  The bill is retroactive to September 11, 2001 because the families of 
all those who sacrificed their lives in the War on Terrorism deserve 
these enhanced benefits. H.R. 3566 and H.R. 3019 are retroactive for 
military deaths occurring on or after September 11, 2001 so that these 
enhanced benefits are provided to all who have sacrificed their lives 
in the war on terrorism.
  Mr. Speaker, the Republicans recognize that they are on the wrong 
side of many critical veterans issues. They are now working overtime in 
order to get back into favor with veterans groups by having Mr. Renzi 
offer a bill that is identical to the McGovern bill. But Mr. Speaker, 
the American people will see through these election year ploys. Having 
a Republican offer a Democratic bill will not obscure the fact that the 
Republicans in this Congress and this Administration are not meeting 
the needs of our veterans.
  Mr. Speaker, the President campaigned for his office claiming to be a 
friend of veterans. In fact, at the beginning of his term, he said 
``Veterans are a priority for this Administration . . . and that 
priority is reflected in my budget.'' Let's look at the record.
  This is an Administration that has starved veterans programs--and 
other domestic programs--in favor of massive tax cuts that few people 
benefit from.
  The Fiscal Year 2004 budget was the highlight of the Republican 
effort to strip veterans programs in order to make room for tax cuts. 
During the debate of this bill, the Republicans attempted to cut $25 
billion from veterans programs at a time when the Department of 
Veterans Affairs was already severely underfunded.
  Every facet of the VA would have been affected by these cuts. Funding 
for healthcare, disability compensation, pension, education and 
survivors benefits, just to name a few, all would have been reduced. In 
the face of stiff Democratic opposition, this funding was largely 
restored, but there is still a significant gap between what the VA 
needs and what the Republican party is willing to provide.
  The Democrats have been fighting to fully fund veterans programs and 
provide the benefits that they have earned and deserve. H.R. 3365, 
Congressman McGovern's bill, is the latest in a long line of Democratic 
efforts to improve the quality of life for our veterans. Whether we are 
talking about ending the disabled veterans tax, fully funding veterans 
health care programs, or increasing Montgomery GI Bill educational 
benefits, Democrats have been at the forefront of helping Veterans.
  Mr. Speaker, Congress should have acted long ago to correct the 
legislative oversight that resulted in subjecting part of the military 
death benefit to taxes, and to increase the benefit. An enhanced, tax-
free death gratuity is a key benefit for the families of soldiers who 
died fighting on our behalf.
  I know that my colleagues will join me in supporting this important 
bill. It is long overdue. I thank Representative McGovern for 
introducing this important legislation.