[Congressional Record (Bound Edition), Volume 151 (2005), Part 15]
[Senate]
[Pages 21033-21034]
[From the U.S. Government Publishing Office, www.gpo.gov]




                          HURRICANE TAX RELIEF

  Mr. FRIST. Mr. President, last night we cleared by unanimous consent 
the Grassley-Baucus Hurricane Tax Relief package.
  In the wake of Hurricane Katrina--and with Hurricane Rita now bearing 
down--this legislation is sorely needed.
  I want to thank Senator Grassley, Senator Baucus and Senator Lott for 
their hard work and leadership to get immediate assistance to the 
hurricane victims.
  All of America is pulling together to support the people of Alabama, 
Louisiana, and Mississippi.
  Since Hurricane Katrina devastated the Gulf Coast, Americans from all 
walks of life, from all across the country, have poured out their 
hearts to help.
  In just 3 weeks, private citizens and businesses have donated 
hundreds of millions of dollars to assist in the relief and recovery 
effort.
  Schools across the country are opening their doors to the thousands 
of displaced students.
  Communities are taking up collections of blankets, clothes, toys, and 
food.
  Families are literally opening their homes to shelter and comfort the 
survivors.
  In the past three weeks, I've had the opportunity to see, firsthand, 
America's compassion at work.
  In the first week after the hurricane hit, I traveled to the gulf to 
do volunteer medical work. I flew to the New Orleans airport and met up 
with medical colleagues I know from Vanderbilt and Boston.
  Many had been so moved by the stories they saw and read in the news 
that they voluntarily organized themselves to head to the Gulf Coast to 
offer their help.
  I met Knox County volunteers from my home State who had been flying 
helicopter missions for days.
  I saw a constant stream of people pitching in, helping out, and 
providing spiritual and material comfort.
  The bill we passed vitally supports and rewards this tremendous 
charity.
  It recognizes that every sector of civic life is engaged in the 
massive recovery effort.
  For example, families who are housing hurricane survivors will be 
eligible to receive a personal tax exemption of $500 for every Katrina 
victim they take in.
  The bill encourages even more cash donations by waiving the income 
limits that are otherwise discouraging.
  The Grassley-Baucus package also rewards contributions from the 
business sector.
  Katrina is estimated to have swept away 400,000 jobs. Under this 
bill, companies that hire displaced workers are eligible to receive a 
Working Opportunity Tax Credit of up to $2400 per employee.
  Hundreds of schools are also in desperate need of extra school books 
for the wave of displaced students coming through their doors.
  Under this legislation, companies can receive an enhanced deduction 
for donating books until the new year. Food donations will also receive 
an enhanced deduction.
  As another way to promote cash donations, the bill increases by 50 
percent the amount of cash contributions a company can deduct.
  The Grassley-Baucus package also offers help to the hurricane 
victims, themselves, in both time and money.
  It allows families to dip into their retirement funds without penalty 
so that they can make ends meet while they struggle to regain their 
footing.
  It also makes sure that if a mortgage company or credit card company, 
for example, decides to forgive a loan or a debt, there won't be any 
income tax due on that amount.
  Another important provision of the bill is its extension of time.
  All of these families need time to find a place to live, to get a 
job, to get back on their feet and rebuild their lives.
  To help ease the pressure, people whose homes are located in the 
presidentially-declared disaster area will have up to 5 years to 
purchase new property.
  Their tax filing deadline will be extended until February of next 
year.

[[Page 21034]]

  These are only first steps. But they're important first steps that 
lift some of the pressure on these traumatized families.
  I want to assure these good people that the United States Senate 
remains hard at work and focused on helping them recover. We are 
committed to the well being of our fellow citizens.
  America is a family. And we pull together in times of need. And we 
will grow closer, stronger and more compassionate as we confront the 
challenges ahead.

                          ____________________