[Congressional Record (Bound Edition), Volume 157 (2011), Part 7]
[Extensions of Remarks]
[Page 9519]
[From the U.S. Government Publishing Office, www.gpo.gov]




 THE INTRODUCTION OF THE DEREK M. HODGE VIRGIN ISLANDS IMPROVEMENT ACT 
                                OF 2011

                                 ______
                                 

                       HON. DONNA M. CHRISTENSEN

                         of the virgin islands

                    in the house of representatives

                        Thursday, June 16, 2011

  Mrs. CHRISTENSEN. Mr. Speaker, I rise today to introduce the Derek M. 
Hodge U.S. Virgin Islands Public-Private Investment Act. This 
legislation would create an innovative pilot program to leverage 
private pension assets to raise approximately $250 million a year 
dedicated to the infrastructure of the U.S. Virgin Islands, while 
simultaneously raising an additional $500 million a year for the U.S. 
Treasury.
  In short, the bill would allow taxpayers a onetime transfer of 
existing IRA, 401k, and other tax deferred investments--up to a total 
limit of $50 billion--into a special fund with no tax or penalties at 
the time of the initial transfer. The transferred funds would receive 
``Roth'' like treatment at retirement if taxes are paid as follows:
  For the first ten years, a 1.5 percent tax would be collected by the 
U.S. Treasury and divided 1.0 percent to the U.S. Treasury and 0.5 
percent to the Virgin Islands.
  During the second ten years, a 1.0 percent tax would be divided 
equally between the U.S. Treasury and the Virgin Islands.
  After twenty years, a 1 percent tax would be continually collected 
only for the benefit of the U.S. Treasury.
  The tax funds allocated to the Virgin Islands would be deposited in 
an escrow account. The Department of Interior would approve the release 
of the escrowed funds to pay for projects set out under an approved 
reconstruction plan.
  Under my bill, the Virgin Islands would receive a twenty-year 
dedicated source of revenue that would enable it to build a modern 
infrastructure to move the islands toward self-sufficiency and reduce 
unemployment.
  Mr. Speaker, the Virgin Islands has neither the tax base nor will it 
receive sufficient federal assistance to make the necessary investments 
in basic infrastructure like water, sewer, storm-water, roads, 
telecommunications, and electric grid. The current infrastructure is 
not ``hardened'' against frequent tropic storms, and therefore must be 
repaired often--further exacerbating the unwillingness of the private 
sector to invest in basic industries on the islands. These investments 
would substantially mitigate the federal government's cost for 
rebuilding after tropical storms and are essential to job creation and 
providing basic services to the citizens of the Virgin Islands.
  Mr. Speaker, the legislation I introduce today is named in honor of 
former Virgin Islands Lieutenant Governor and former President of the 
Legislature of the Virgin Islands, Derek M. Hodge, who recently passed 
away. Derek was the driving force behind this bill and he dedicated the 
last several years of his towards its passage because of what it would 
mean for his beloved Virgin Islands. There would not be a more fitting 
tribute to his life's work than the enactment of this bill into law.
  In these days of budget cuts and growing unwillingness to fund for 
essential infrastructure, my bill will ensure the necessary investment 
in the Virgin Islands through a wholly voluntary funding source--a win 
for the citizens of the U.S. Virgin Islands and the American taxpayers.

                          ____________________