[Congressional Record (Bound Edition), Volume 153 (2007), Part 20]
[House]
[Page 27854]
[From the U.S. Government Publishing Office, www.gpo.gov]




           MILITARY DEATH GRATUITIES TO TAX FAVORED ACCOUNTS

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from North Carolina (Mr. Jones) is recognized for 5 minutes.
  Mr. JONES of North Carolina. Mr. Speaker, I would like to thank 
Chairman Charlie Rangel and the House Ways and Means Committee for 
their work in putting together a package of legislation called the 
Heroes Earning Assistance and Relief Tax Act of 2007, which is designed 
to help members of the United States Armed Forces and their families. 
I'm especially grateful, Mr. Speaker, that the committee has indicated 
plans to include in this legislation a bill that I first introduced in 
2005.
  H.R. 418 would permit military families to receive the death gratuity 
to invest the full amount into certain tax-favored accounts. A death 
gratuity is a $100,000 payment paid to survivors of servicemembers 
whose death resulted from combat-related circumstances.
  Current tax law limits the amount that recipients of the death 
gratuity can place in tax-preferred accounts, such as a Roth IRA or 
Coverdell Education Savings Account. This legislation would change that 
to allow recipients to contribute up to the full amount of the gratuity 
payment to these accounts.
  Mr. Speaker, as the families of our fallen heroes try to put their 
lives back together, they need all the help they can get. The families 
should not have to worry about saving the death gratuity to pay for 
health care, college or other expenses and then have the government 
come in and tax the interest on that savings. This bill would help 
ensure that does not happen.
  Mr. Speaker, the need for this legislation was brought to my 
attention by Captain Michael Ceres, a constituent stationed at Marine 
Corps Air Station New River. Captain Ceres, who just returned from 
serving in Iraq, contacted my office and suggested that Congress should 
institute this change to ease the burden on grieving military families.
  Mr. Speaker, the Joint Committee on Taxation has scored this 
legislation at no cost, meaning that the actual cost of this proposal 
is less than $500,000 over 9 years. Our men and women in uniform serve 
this Nation with great honor and distinction; many give their lives for 
this country. We owe it to our fallen military heroes to expand this 
option of families who receive the death gratuity, families who have 
paid the ultimate cost with the loss of their loved one.
  H.R. 418 has also received the endorsement of The Military Coalition, 
a group of prominent national military and veterans organizations that 
represent more than 5.5 million members plus their families.
  Mr. Speaker, of the 35 organizations that have voiced their support 
for H.R. 418, let me name just a few: The Air Force association, 
AMVETS, Fleet Reserve Association, Gold Star Wives of America, Military 
Officers Association of America, Marine Corps League, Navy League of 
the United States, and there are many others.
  I call upon my colleagues to support the inclusion of H.R. 418 in the 
Heroes Earning Assistance and Tax Relief Act of 2007 in order to expand 
the options of military families whose loved ones have given their 
lives in the name of freedom and in defense of this Nation.
  Mr. Speaker, I close by asking God to please bless our men and women 
in uniform. I ask God to please bless the families of our men and women 
in uniform. And also, I will ask God to continue to bless America.

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