[Congressional Record (Bound Edition), Volume 149 (2003), Part 19]
[House]
[Pages 26332-26337]
[From the U.S. Government Publishing Office, www.gpo.gov]




                     FALLEN PATRIOTS TAX RELIEF ACT

  Mr. SAM JOHNSON of Texas. Mr. Speaker, I move to suspend the rules 
and pass the bill (H.R. 3365) to amend title 10, United States Code, 
and the Internal Revenue Code of 1986 to increase the death gratuity 
payable with respect to deceased members of the Armed Forces and to 
exclude such gratuity from gross income.
  The Clerk read as follows:

                               H.R. 3365

       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 Patriots Tax Relief 
     Act''.

     SEC. 2. FINDINGS.

       The Congress finds the following:
       (1) The tragic events of September 11, 2001, and subsequent 
     worldwide combat operations in the Global War on Terrorism 
     and in Operation Iraqi Freedom have highlighted the 
     significant contributions of members of the Armed Forces in 
     support of the national security of the United States and the 
     sacrifices made by those members in the defense of freedom.
       (2) The sacrifices made by the members of the Armed Forces 
     are significant and are worthy of meaningful expressions of 
     gratitude by the Government of the United States, especially 
     in the case of sacrifice through loss of life.

[[Page 26333]]

       (3) The death gratuity payment made by the United States 
     Government for deaths while in military service has 
     historically been tax exempt.
       (4) The military death gratuity payment should remain tax 
     exempt in order to assist families of fallen patriots to 
     continue their quality of life during their greatest time of 
     need.
       (5) The Congress should periodically increase the amount of 
     the military death gratuity payment to ensure that its value 
     is not diminished.

     SEC. 3. INCREASE IN DEATH GRATUITY PAYABLE WITH RESPECT TO 
                   DECEASED MEMBERS OF THE ARMED FORCES.

       (a) Amount of Death Gratuity.--Section 1478(a) of title 10, 
     United States Code, is amended by striking ``$6,000'' and 
     inserting ``$12,000''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect as of September 11, 2001, and shall apply 
     with respect to deaths occurring on or after that date.

     SEC. 4. RESTORATION OF FULL EXCLUSION FROM GROSS INCOME OF 
                   DEATH GRATUITY PAYMENT.

       (a) In General.--Paragraph (3) of section 134(b) of the 
     Internal Revenue Code of 1986 (relating to qualified military 
     benefit) is amended by adding at the end the following new 
     subparagraph:
       ``(C) Exception for death gratuity adjustments made by 
     law.--Subparagraph (A) shall not apply to any adjustment to 
     the amount of death gratuity payable under chapter 75 of 
     title 10, United States Code, which is pursuant to a 
     provision of law enacted on or before the date of the 
     enactment of this subparagraph.''.
       (b) Conforming Amendment.--Section 134(b)(3)(A) of such 
     Code is amended by striking ``subparagraph (B)'' and 
     inserting ``subparagraphs (B) and (C)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to deaths occurring after September 
     10, 2001.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Texas (Mr. Sam Johnson) and the gentleman from New York (Mr. McNulty) 
each will control 20 minutes.
  The Chair recognizes the gentleman from Texas (Mr. Sam Johnson).
  Mr. SAM JOHNSON of Texas. Mr. Speaker, I yield myself such time as I 
may consume.
  Mr. Speaker, I rise today in support of this bill, the Fallen 
Patriots Tax Relief Act. It is important to me, and I think to the 
whole Congress, that we get this enacted right away. It is 
unconscionable to me that a knock at the door by a military chaplain is 
followed by a knock on the door from the tax man.
  Sadly, this is the case. I had the distinct honor of serving my 
country in the Air Force for about 29 years. So my family and I know 
something about this part of military life, and I will never forget, 
after I got home from being a prisoner of war, that my wife said that 
one of her worst moments was when the military chaplain pulled up in 
front of the house after I was shot down and her heart just stopped. 
She did not know what they were going to say, but she knew it was not 
going to be good, and I cannot imagine today the unspeakable despair of 
a family who just lost the loved one in service of their country only 
to be followed up by the horror of a visit from the tax man. That is 
just wrong. This bill fixes that. We need to change that law today.
  This bill permits the entire amount of the death benefit gratuity to 
be tax free. It also increases the amount of the death benefit to 
$12,000, which is more in line with the value of these benefits when 
they were initially created.
  This is a clean bill. There is absolutely no good reason for it to 
get fouled up in the same legislative back water that stalled three 
previous provisions of this bill.
  Sadly, every day we hear of deaths in Iraq and other military hot 
spots around the globe. In the 2 years since 9/11, it has been 
increasingly important that we eliminate the unfair, immoral tax on the 
death benefit of a servicemember's loved ones who receive that from the 
Armed Forces.
  Mr. Speaker, I reserve the balance of my time.
  Mr. McNULTY. Mr. Speaker, I yield myself such time as I may consume.
  There is no need for me to reiterate the details of this bill. The 
gentleman from Texas has outlined them. I strongly support the bill, 
and I agree with him wholeheartedly, that its passage is long overdue.
  I will also say that it is one of my great honors to serve in the 
United States Congress with my friend Sam Johnson. He rendered 
outstanding service as a member of our Armed Forces over a very long 
period of time. He was also, as my colleagues all know, a prisoner of 
war for 7 years and endured torture during his service on behalf of our 
country. Thankfully, he came back home and has rendered outstanding 
service to his community, to his State, and his Nation ever since.

                              {time}  1400

  I am grateful to him, and I am grateful to all of those who served in 
our Armed Forces through the years.
  As I get older, I work more at keeping my priorities straight. Part 
of that for me is to remember that had it not been for all of the men 
and women who served in the United States military through the years, 
the rest of us would not have the privilege of going around bragging, 
as I often do, about how we live in the freest and most open democracy 
on the face of the Earth.
  Freedom is not free. We have paid a tremendous price for it. Part of 
that price is visible in this Chamber. And today we are talking about 
those who made the supreme sacrifice. The gentleman from Texas (Mr. Sam 
Johnson) was a prisoner of war in the same war that took the life of my 
brother, HM3 Bill McNulty; and I think that is why I feel especially 
close to Sam.
  Mr. Speaker, this is a very, very minor benefit to the families of 
those who made the supreme sacrifice, and we ought to pass it with 
dispatch. I strongly support this bill, and I urge all of my colleagues 
to vote for it.
  Mr. Speaker, I am pleased to yield 4 minutes to the gentleman from 
Massachusetts (Mr. McGovern).
  Mr. McGOVERN. Mr. Speaker, I thank the gentleman for yielding me this 
time and for his long leadership on tax fairness and support for our 
men and women in uniform. I also want to publicly express my 
appreciation for the leadership and the service of the gentleman from 
Texas (Mr. Sam Johnson).
  Mr. Speaker, I rise in strong support of H.R. 3365. I had the 
opportunity last night to speak about the need to change the current 
military death gratuity, so I simply want to thank my colleague from 
Arizona (Mr. Renzi) for making sure that the House delays no longer in 
acting on this urgent issue. I also want to commend the tireless work 
of the gentleman from Texas (Mr. Edwards) and the gentleman from North 
Carolina (Mr. Jones), who were pioneers on this issue and so many 
others that benefit our military and their families.
  I want to thank my good friend and colleague, and the ranking 
minority member of the House Committee on Armed Services, the gentleman 
from Missouri (Mr. Skeleton), for ensuring that language to increase 
the death gratuity and to make it retroactive to September 11, 2001, 
will be included in the defense authorization conference report.
  Mr. Speaker, I heard from many military veterans in my district about 
this issue. In April, Mr. Philip Kurdulis of Worcester, Massachusetts, 
in particular, motivated me to fix the problems with the death 
gratuity. He wrote: ``Dear Representative McGovern: I was shocked to 
find out that the death benefit for our servicemen and women is only 
$6,000, and that $3,000 of that is taxed. We need to do the right thing 
as a country for the brave men and women who have made the ultimate 
sacrifice for their country. The Congress had no problem coming up with 
$1.6 million each for the families and survivors of the World Trade 
Tower victims. I do not begrudge this money; however we should do much 
more for the brave men and women we sent to avenge them. Deaths in our 
current war in Iraq and the conflict in Afghanistan have been 
relatively few in number. I believe it should be affordable, therefore, 
to increase the death benefit. I propose legislation to correct this 
grossly inadequate compensation. As a 10-year veteran of the Army 
Reserve, I ask you to `Achieve the Honorable' in this matter.''
  Mr. Speaker, I also want to thank Mr. Gary Brown, who is the director 
of

[[Page 26334]]

the VA office in Marlborough, Massachusetts, who encouraged me to 
introduce legislation to remedy the problems with the current death 
gratuity, which I did on September 5 when I introduced H.R. 3019, a 
bill that is basically identical to the one we are considering today.
  Mr. Speaker, as of this morning, 352 American military personnel have 
lost their lives in Iraq. At least 67 others have perished in Operation 
Enduring Freedom, mainly in Afghanistan. Among the fallen, nine are 
from Massachusetts. In the face of such loss, Members of Congress stand 
united in our need to express our condolences and respect to the 
families who have lost a loved one and to ensure that their most 
immediate needs are provided for. Today, the House will do the right 
thing by our military families and pass H.R. 3365; but, Mr. Speaker, we 
cannot stop there. We must make sure that this bill reaches the 
President's desk before we adjourn. Only then can we be sure that 
grieving military families will not be burdened with an unexpected tax 
bill.
  We must also move now to complete our work on the Armed Forces Tax 
Fairness Act, which provides additional assistance to our uniformed men 
and women, especially our overstressed Guard and Reserves.
  It is more than a bit ironic, Mr. Speaker, that yesterday the 
majority in the Committee on Ways and Means approved legislation to 
provide $140 billion in corporate tax breaks but cannot seem to find 
the time to send this very modest bill of tax relief for our military 
to the President of the United States.
  Mr. Speaker, I would urge my colleagues to vote ``yes'' on H.R. 3365, 
and I call upon the House leadership to send the Armed Forces Tax 
Fairness Act to the President.
  Mr. Speaker, I submit for the Record the names of the servicemen from 
Massachusetts who have been killed in combat.

  Members of U.S. Armed Forces From Massachusetts Killed in Action or 
        Died While on Active Duty September 11, 2001-Curent Date

(Information may be partial or incomplete; sources: CNN ``Forces: U.S. 
 and Coalition Casualities'' and Central Command Public Affairs Office/
                      U.S. Department of Defense)

       Staff Sergeant Joseph P. Bellavia; Age: 28; Unit: 716th 
     Military Police Battalion, 16th Military Police Brigade, 
     XVIII Airborne Corps, U.S. Army; Hometown: Wakefield, MA; 
     Date and Place of Death: October 16, 2003 in Karbala, Iraq.
       Specialist Matthew G. Boule; Age: 22; Unit: 2nd Battalion, 
     3rd Aviation Regiment, 3rd Infantry Division, U.S. Army; 
     Hometown: Dracut, MA; Date and Place of Death: April 2, 2003 
     in central Iraq.
       Staff Sergeant Joseph Camara; Age: 40; Unit: 115th Military 
     Police Company, Army National Guard; Hometown: New Bedford, 
     MA; Date and Place of Death: May 21, 2003 in an area south of 
     Baghdad, Iraq.
       Sergeant Justin W. Garvey; Age: 21; Unit: 1st Battalion, 
     187th Infantry Regiment, 3rd Brigade, 101st Airborne 
     Division, U.S. Army; Hometown: Townsend, MA; Date and Place 
     of Death: July 20, 2003 in Tallifar, Iraq.
       Private First Class John D. Hart; Age: 20; Unit: 1st 
     Battalion, 508th Infantry Regiment, 173rd Airborne Brigade, 
     U.S. Army; Hometown: Bedford, MA; Date and Place of Death: 
     October 18, 2003 in Taza, Iraq.
       1st Lieutenant Brian M. McPhillips; Age: 25; Unit: 2nd Tank 
     Battalion, 2nd Marine Division, U.S. Marines; Hometown: 
     Pembroke, MA; Date and Place of Death: July 27, 2003 in 
     central Iraq.
       Captain Benjamin W. Sammis; Age: 29; Unit: Marine Aircraft 
     Group 39, 3rd Marine Aircraft Wing, U.S. Marines; Hometown: 
     Rehobeth, MA; Date and Place of Death: April 4, 2003 in Ali 
     Aziziyal, Iraq.
       Sergeant First Class Daniel H. Petithory; Age: 32; Unit: 
     U.S. Army; Hometown: Cheshire, MA; Date and Place of Death: 
     December 5, 2001 in Afghanistan.
       Staff Sergeant Bruce A. Rushforth, Jr.; Age: 35; Unit: U.S. 
     Army; Hometown: Middleboro, MA; Date and Place of Death: 
     February 21, 2002 in the Philippines.

  Mr. SAM JOHNSON of Texas. Mr. Speaker, I reserve the balance of my 
time.
  Mr. McNULTY. Mr. Speaker, I am pleased to yield 5 minutes to the 
gentleman from Missouri (Mr. Skelton), my former colleague on the 
Committee on Armed Services and the ranking minority member of the 
Committee on Armed Services of the House of Representatives.
  Mr. SKELTON. Mr. Speaker, I thank the gentleman for his leadership on 
this, and my friend, the gentleman from Massachusetts (Mr. McGovern), 
for his hard work in seeing to it this bill gets here; and I thank as 
well our friend, the gentleman from Texas (Mr. Sam Johnson).
  Mr. Speaker, I rise in support of this bill, and I thank those who 
have offered it and have cosponsored it. The bill before us increases 
the death gratuity from $6,000 to $12,000; but more important, it would 
provide that the entire payment be tax free.
  Congress first established the benefit for death back in 1908, and 
there is a long history of this. As a result of increasing the benefit 
from $3,000 to $6,000, and the way the law was written at the time, 
part of that remained taxable. We are now increasing this to $12,000 
and making it all nontaxable.
  About a month ago, I went to Iraq. I had the opportunity to see some 
young men and young women in uniform doing their duty. It is arduous 
and difficult, and I felt very proud of them. Whether they had a star 
on their shoulder or whether they be buck privates, they were doing 
masterful jobs, for which they were well trained. They are the cream of 
the crop of our youth in this country. We thank them for that.
  Three days our group spent in Iraq, flying in and out of Baghdad from 
Kuwait. We had to spend the night in Kuwait, for security reasons, we 
were told. The second night, Sunday night, we flew from Baghdad back to 
Iraq, and in the C-130 airplane there was with us a body bag carrying 
the body of a young soldier. It caused me to stop and think that these 
young Americans are literally putting their lives on the line, and the 
best thing we can do is to show gratitude and appreciation.
  Cicero once said that gratitude was the greatest of all virtues, and 
I think that he was right. So how do we do that today? We do it with 
this bill, introduced by the gentleman from Massachusetts (Mr. 
McGovern), the gentleman from Arizona (Mr. Renzi), the gentleman from 
New York (Mr. McNulty), and the gentleman from Texas (Mr. Sam Johnson). 
This shows gratitude to those unfortunate families that lose a loved 
one, and it is a good thing that we can do.
  I wholeheartedly support it, both the increase and the tax benefit 
therefrom, because gratitude is the greatest of all virtues and this is 
one small way we can express it.
  Mr. Speaker, I rise to support my colleagues, Mr. Renzi and Mr. 
McGovern, in their efforts to provide a tax-free, increased death 
gratuity payment to survivors of deceased service members. The bill 
before us would increase the death gratuity payment from $6,000 to 
$12,000, but more importantly, it would provide that the entire payment 
be tax free.
  Congress first established the death gratuity payment in 1908. At the 
time, it provided six months pay to the survivors of deceased service 
members. The death gratuity was necessary because there was no 
government life insurance program and career personnel often could not 
obtain or afford adequate commercial life insurance. The death gratuity 
payment was used to provide immediate financial assistance to families 
of deceased military members to meet immediate expenses.
  The death gratuity program was repealed in 1917 when Congress 
established the predecessor to the current Dependency and Indemnity 
Compensation Program. However, only two years later, Congress would 
restore this important benefit. Over time as inflation and pay 
increases eroded the principle of a six-month pay payment, all 
survivors regardless of rank began to receive the higher payment of 
$3,000.
  The maximum $3,000 tax-free benefit would not see a notable increase 
until 1991, as our Nation sent its sons and daughters in uniform to war 
in the Persian Gulf conflict. Congress, recognizing the sacrifices that 
our military families were experiencing, doubled the death gratuity 
payment from $3,000 to $6,000. Unfortunately, the additional increase 
of $3,000 was determined to be a taxable benefit.
  Today, over 120,000 American troops are back in the Persian Gulf to 
help liberate the Iraqi people. Since the start of the Iraq conflict, 
over 229 service members have given their lives in combat and another 
127 have been killed in the line of duty. In addition, 31 service 
members have lost their lives in combat in Afghanistan in Operation 
Enduring Freedom, and 58 Armed Forces personnel have been killed in 
service to their Nation.

[[Page 26335]]

  We have a moral obligation to provide assistance to these families 
and help them through this difficult time. Increasing the death 
gratuity to $12,000 for these military families, and those who may lose 
their service member in the war against terrorism, will provide 
immediate financial assistance to families in those first turbulent and 
stressful weeks.
  As my colleagues are aware, the conferees to the defense 
authorization bill are also considering a conference provision that 
would increase the death gratuity to $12,000 for survivors of deceased 
service members.
  While I am relatively confident that provision will be accepted by 
the conferees, what is really needed is to make this payment tax-free. 
Which is why I am pleased that my colleagues from the Ways and Means 
Committee are here today to help ensure that the death gratuity 
payments paid to military families are tax-free. These families should 
not have to worry that this additional money, provided to them in a 
time of need, may end up being a financial hardship at the end of the 
year.
  I urge my colleagues to recognize the sacrifices and dedication of 
those who serve in uniform, and support this effort to provide these 
families the additional financial resources to help them during a 
heartbreaking and distressing time.
  Mr. SAM JOHNSON of Texas. Mr. Speaker, I yield myself such time as I 
may consume to thank the gentleman from Missouri for his comments.
  Mr. Speaker, I reserve the balance of my time.
  Mr. McNULTY. Mr. Speaker, I am pleased to yield 3 minutes to the 
gentlewoman from California (Ms. Woolsey), my friend and colleague.
  Ms. WOOLSEY. Mr. Speaker, yesterday the 352nd and 353rd American 
servicemembers were killed since the start of the war in Iraq. That 
means almost twice as many soldiers have died since the President 
declared an end to major fighting operations than during the 2 months 
of actual war. Something is drastically wrong here.
  We are not adequately showing our gratitude to those who have 
sacrificed for us. As a result, 353 of our soldiers have lost their 
lives, which speaks to the administration's haphazard planning for the 
postconflict phase in Iraq, costing those 353 Americans their lives and 
thousands who have been wounded.
  We must support our brave men and women stationed in Iraq and 
Afghanistan, and we must also make a commitment to support the widows 
and widowers of those soldiers who are killed halfway around the world. 
And we can do that by passing H.R. 3365, doubling the amount paid to 
survivors of service men and women killed on the battlefield from 
$6,000 to $12,000, at the same time making this benefit completely tax 
free. After all, taxing families of patriots does not seem very 
patriotic to me.
  It appears this bill has strong bipartisan support, and yet we have 
not always been so dedicated to our soldiers. On October 20, here in 
this House, less than 2 weeks ago, this body voted on an amendment to 
the $87 billion supplemental bill that would have added $1,500 as a 
bonus for troops serving in Iraq and Afghanistan. Unfortunately, this 
amendment failed by a vote of 213 to 213, with most Democrats voting in 
favor of the bonus and most Republicans voting against the bonus.
  The Republican administration thrust upon us this budget-busting $87 
billion supplemental spending bill for Iraq and Afghanistan, and then 
the House had the audacity to vote against the bonus for our troops; 
our troops who are in harm's way; our troops who have been wounded, and 
whose lives will be changed and altered forever; and our troops who 
have given up their lives for this country.
  We must support our troops. We must compensate them for their service 
to this country should disaster strike. As any pundit would have 
predicted, and which has happened 353 times to date in Iraq in the last 
7 months, we must support the families of those who make the ultimate 
sacrifice. Mr. Speaker, this is the very least we can do. To that end, 
I am proud to support H.R. 3365.
  Mr. SAM JOHNSON of Texas. Mr. Speaker, I reserve the balance of my 
time.
  Mr. McNULTY. Mr. Speaker, I yield myself such time as I may consume. 
I join with the others in commending the gentleman from Arizona and the 
gentleman from Massachusetts for their sponsorship of this bill. I 
thank the ranking minority member of the Committee on Ways and Means, 
the gentleman from New York (Mr. Rangel), for designating me to manage 
the bill on the Democratic side.
  As I said in the beginning, this is a minor tax benefit that we are 
giving to those who have made the supreme sacrifice. I wish we were 
doing more, but I strongly agree with my friend and colleague, the 
gentleman from Texas, that this is long overdue. We need to do this 
with dispatch, and we need to do it for the families of those who have 
lost their loved ones.
  One of the fundamental principles is that ``life is to give, not to 
take.'' Sitting across from me in this Chamber is a gentleman who has 
given a great deal throughout his life, and especially during his 
military service. Veterans of this country and the families of those 
who have lost loved ones could have no better friend than the gentleman 
from Texas (Mr. Sam Johnson). He is one of the reasons why, when I get 
up in the morning, the first two things I do are to thank God for my 
life and veterans, like the gentleman from Texas, for my way of life.
  I urge all of my colleagues to support this bill.
  Mr. Speaker, I yield back the balance of my time.
  Mr. SAM JOHNSON of Texas. Mr. Speaker, I yield myself such time as I 
may consume.
  Mr. Speaker, I thank the gentleman from New York for his kind words 
and support, and the support of all the Democrats, which has happened 
in this House previously.
  Mr. Speaker, the House has acted repeatedly on this issue. The 
Committee on Ways and Means marked up a similar bill in the committee 
on February 27. That has been a long time ago.

                              {time}  1415

  In the full House we passed a similar bill on March 20 by a vote of 
422-0. An amended version of this bill then passed the Senate by a vote 
of 97-0, but it did not get out of conference. The House passed the 
concept again on April 9 by voice vote, so I guess we are just having a 
hard time keeping this bill narrow enough to get it enacted. It is so 
narrow now, I do not think we could squeeze it any tighter.
  I do not believe the problems with this bill rest on this side of the 
Capitol. Unfortunately, House rules do not allow me to talk about where 
the roadblocks are to enactment, but it is not on this side of the 
Capitol.
  I have a provision regarding military academy scholarships and 
college savings plans that I would like to get enacted this year, but 
if it would mean holding up, for even one more day, the elimination of 
this immoral tax on military death benefits, I would forgo having any 
other provisions added.
  Frankly, I do not care what the reasons are for not having this 
concept enacted into law, it is just wrong to tax military death 
benefits. And as the gentleman from New York (Mr. McNulty) pointed out, 
it is a minor tax bill. Let us pass this bill today with another strong 
vote and get the job done before the end of this year. It is the least 
we can do for the families who have lost a loved one in service to 
their country. It is for America. We need to do it for America.
  Mr. RENZI. Mr. Speaker, today the House is considering H.R. 3365, the 
Fallen Patriots Tax Relief Act. I am moved by the bipartisanship that 
has carried this bill through the House. The outstanding leadership of 
my colleagues, Mr. Jones of South Carolina and Mr. McGovern of 
Massachusetts, illustrates the dedication of this Congress to support 
service members and their families who have sacrificed so much for this 
great country. In addition, I want to thank the gentlemen for their 
guidance on this bill and for their eager cooperation in drafting H.R. 
3365.
  This legislation will increase the death gratuity payment to $12,000 
and will return the payment to its historical tax-exempt status. This 
payment must remain a gift to surviving families as a gesture of a 
grateful nation that dignifies their ultimate sacrifice of their loved 
ones. At a time when our nation is sending its sons and daughters to 
war, it is unconscionable to ask their families to shoulder a tax 
burden on a gift of thanks intended to be free

[[Page 26336]]

from taxation. It is because of three of my constituents who gave their 
lives to defend our freedom that I became involved with this 
legislation.
  Spencer Karol, from Holbrook, Arizona, was a 20-year-old Army 
Specialist with the 165th Military Intelligence Battalion. He enlisted 
in the Army with two friends and was sent to Iraq. Specialist Karol 
died when his vehicle was hit by an explosive device on patrol at Ar 
Ramadi looking for enemy combatants on October 6, 2003. This 
legislation would give Specialist Karol's mother the ability to meet 
the funeral expenses of burying her eldest son.
  Specialist Lori Piestewa, was assigned to the 507th Maintenance 
Division, and was the first Native American woman killed in action. 
Under current law, Lori's family must pay taxes on the death benefit 
they have received. This legislation will correct this injustice.
  Alyssa Peterson, a 27-year-old Army Specialist, was an athlete and 
graduated at the top of her class. She was fluent in several languages 
and gracious to her family and friends. I would like to share with you 
an essay that this precocious young woman wrote when she was a fifth 
grade student at Sechrist Middle School, in Flagstaff Arizona. She 
wrote:

       What is an American Patriot?
       I believe that an American Patriot can be anyone who lives 
     in America. I think that no matter what anyone does with 
     their time, they can be a patriot each day. To be a patriot 
     you need to be a loyal American. You need to stand up for 
     what is right. You need to be the best person you can be.
       A patriot needs to help America be a better place to live. 
     Cleaning up litter is being patriotic. Obeying traffic rules 
     is being patriotic. Helping our neighbors and giving of 
     ourselves is being patriotic. Participating in your school 
     activities is being patriotic, just like adults participating 
     in voting for our government leaders and laws is patriotic. A 
     patriot obeys all the laws of the land.
       Patriotism is an attitude which shows up in our everyday 
     actions. No one needs to wait to be a patriot.

  I commend Alyssa's words to your attention. It is now time to pass 
this necessary legislation and pay proper tribute to those who have 
served our nation.
  Mr. SOUDER. Mr. Speaker, I come before you today in support of H.R. 
3365, the Fallen Patriots Tax Relief Act. While there has been debate 
over how strong our national defense should be in order to preserve the 
freedom of others, I think you will find that everyone in this chamber 
is in agreement when it comes to the treatment of our fallen soldiers 
and their families. This bill would be an invaluable way of expressing 
our country's gratitude to the brave men and women who have died giving 
their last full measure of devotion.
  In March of this year, Marine Lance Corporal David K. Fribley, from 
Atwood, Indiana, and seven of his fellow Marines, were killed in the 
opening march of Operation Iraqi Freedom. While the gratuity that is 
owed to the Fribley family has historically been exempt from taxation, 
an oversight in the tax code after 1991 left half of the $6,000 
gratuity subject to taxation. Families who have had to suffer because 
of the loss of a loved one are now being asked to pay taxes on what was 
set up to be a one time, tax-free gift. It is for this reason and for 
families like the Fribley's that I pledge my full support to this bill. 
If adopted, this legislation would increase the gratuity payable to 
survivors of deceased members of the armed forces to $12,000 
retroactive to September 11, 2001, and would make the payment fully 
tax-exempt.
  As we carry on this struggle against evil, it is a most tragic fact 
of war that we are sure to lose more young people like Lance Corporal 
David Fribley. As they courageously make the sacrifice for our liberty 
and the safety of our world, we must never fail to honor their memory 
and see that their loss has not been in vain.
  Mr. ORTIZ. Mr. Speaker, the bill we pass today is indeed the least we 
could possibly do for the young men and women who have carried our 
battle to the enemy in the global war in which we are engaged. We 
should be ashamed that the Congress is only now providing enhanced 
civil and economic protections for military personnel on active duty.
  At a time when we are asking our military to carry an incredibly 
heavy burden, the Congress is deeply concerned about making life as 
easy as possible for our servicemembers and their families, and this 
bill is the way to begin.
  While our troops are on duty overseas and elsewhere, separated from 
their families and--in the case of Guard and Reserve troops called up--
struggling on less salary than they make in the civilian world, we are 
hopeful this legislation will help those military families better cope 
with economic challenges.
  This bill would increase the death gratuity payable to the families 
of deceased members of the Armed Forces and to exclude such gratuity 
from gross income. The intent is to assist surviving family of active 
duty service members with immediate expenses following notification of 
the death of a loved one.
  This bill would double the death gratuity from $6,000 to $12,000 and 
apply it retroactively to all deaths after September 10, 2001. The bill 
would also exempt from taxation the full $12,000 payment. Currently, 
only $3,000 of the current payment of $6,000 is exempt from taxation.
  Given our experience here in South Texas in helping families who have 
lost loved ones, I can tell you that this Congress can do much more 
financially to ease their suffering, but I'm pleased that at least we 
are no longer taxing their death benefits.
  Mr. ALEXANDER. Mr. Speaker, I rise today in support of H.R. 3365/H.R. 
3019 (Renzi/McGovern), the Fallen Patriots Tax Relief Act. I am a proud 
cosponsor of both of these bills because they honor our fallen service 
men and women. This bill doubles the military death benefit paid to 
survivors of military personnel killed in the line of duty from $6,000 
to $12,000. It also makes the $12,000 death benefit tax-free. The 
change would be effective retroactive to deaths occurring on or after 
September 11, 2001. (Under current law, the military death benefit is 
$6,000, of which $3,000 is subject to federal tax). As a nation and as 
Members of Congress, we need to do the best we can for the families of 
the brave men and women who have made the ultimate sacrifice for our 
country's freedom.
  For the last several months, I have supported measures that give our 
armed forces the resources necessary to provide our soldiers and their 
families with a better quality of life. I have supported restoring the 
child tax credit for the families of 260,000 children of active duty 
military personnel. I also supported a provision on the house floor to 
add a $1,500 bonus for troops serving in Iraq and Afghanistan. 
Unfortunately, this provision failed on a tie vote. When Democrats 
offered to transfer $3.6 billion from Iraqi reconstruction to providing 
more support for our troops--including important quality-of-life 
measures such as improved health care benefits I voted yes because I 
believe that we should do all we can to protect and care for our men 
and women in uniform. H.R. 3566/H.R. 3019 (Renzi/McGovern) is no 
different. Support for our troops is a priority for me and I am proud 
to support this benefit for their families.
  I am glad that the Renzi/McGovern bill makes the military death 
benefit tax-exempt. It is wrong that one-half of the military death 
benefit is currently subject to taxation. Families of patriots should 
not be penalized on a benefit meant to show the nation's gratitude for 
their 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/H.R. 3019 (Renzi/McGovern) will 
remedy this unfair taxation problem for our military families.
  I commend my colleagues Representatives McGovern and Renzi for 
sponsoring this important measure, and I look forward to supporting 
this bill and supporting our troops.
  Mr. SAM JOHNSON of Texas. Mr. Speaker, I rise today in support of 
H.R. 3365, the Fallen Patriots Tax Relief Act. It is important that we 
get this bill enacted into law right away. It is unconscionable that a 
knock at the door by a military chaplain is followed by a knock on the 
door from the tax man. But sadly, this is the case.
  I had the distinct honor of serving my country in the Air Force for 
about 29 years. So my family and I know something about military life. 
And my wife, Shirley, has said that one of her worst moments was when 
the military chaplain pulled up in front of the house after I was shot 
down in Vietnam, and her heart just stopped. She didn't know what they 
were going to say, but she knew it was not going to be good.
  I can't imagine the unspeakable despair of a family who just lost a 
loved one in service of their country, only to be followed up by the 
horror of a visit from the taxman. That is just wrong. So this bill 
fixes that. Let us change this law today.
  This bill permits the entire amount of the death benefit gratuity to 
be tax free. It also increases the amount of the death benefit to 
$12,000, which is more in line with the value of these benefits when 
they were initially created. This is a clean bill. There is absolutely 
no good reason for it to get fouled up in the same legislative 
backwater that has stalled three previous versions of this bill.
  You know, there a lot of good stories out there that don't get 
reported. For example, I've

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heard of a company of marines that left Iraq this summer without one 
casualty. That's great news. But, more common is the news we see on 
T.V. As President Bush says, ``Iraq is still a dangerous place.''
  Sadly, nearly every day we hear of deaths in Iraq and other military 
hot spots around the globe. In the two years since 9/11 it has been 
increasingly important that we eliminate the unfair, immoral tax on the 
death benefit a service member's loved ones receive from the Armed 
Forces. In fact, this bill reaches back to that terrible day and also 
applies to families who will be receiving a visit from a chaplain in 
the future. I find it shameful that we continue to tax one-half of the 
death benefits paid to families.
  This must change before the end of the year. It is the least we can 
do. These families have given the ultimate sacrifice for our country. 
We must not take any more from them.
  Ms. SOLIS. Mr. Speaker, I rise in strong support of H.R. 3365, the 
Fallen Patriots Tax Relief Act.
  The Fallen Patriots Tax Relief Act is a positive step in honoring the 
men and women of the Armed Services, who have made the ultimate 
sacrifice and given their lives while serving our country.
  Unfortunately, the current death gratuity paid to the survivors of a 
military member is not adequate to cover funeral expenses, leaving them 
with the extra burden of covering these unexpected costs. The vast 
majority of the men and women in uniform come from hard working low-
income backgrounds, whose families should not be expected to cover 
these costs.
  On October 13, 2003, Private Jose Casanova, Jr. became the second 
constituent of mine to lose his life in Iraq.
  The financial assistance provided to the Casanova family for burial 
expenses was not sufficient. The family still had to pay money from 
their own funds despite having the funeral home and the local police 
department waive numerous fees and provide some services for free.
  This situation is not acceptable. Military families, like the 
Casanova family, deserve to be relieved of unnecessary financial costs 
associated with their fallen family members' deaths. This is the least 
we can do as a country.
  In honor and in memory of our fallen patriots, I strongly urge my 
colleagues to support this bill.
  Mr. SAM JOHNSON of Texas. Mr. Speaker, I yield back the balance of my 
time.
  The SPEAKER pro tempore (Mr. Terry). The question is on the motion 
offered by the gentleman from Texas (Mr. Sam Johnson) that the House 
suspend the rules and pass the bill, H.R. 3365.
  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. SAM JOHNSON of Texas. 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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