What's New

Committee Schedule

Prints and Publications

Rules and Jurisdiction

Legislative Resources

Search the
Committee's site

Committee Membership

Committee News Releases

Chairmen's Portraits Page

FULL COMMITTEE

Tax Issues Only

SUBCOMMITTEES:

Trade

Oversight

Health

Social Security

Human Resources

Select Revenue Measures

Privacy, Copyright, and Permission to Link Statement

Committee on Ways and Means

FOR IMMEDIATE RELEASE
September 13, 2001
Majority 202 225 8933
Minority 202 225 3526

VICTIMS OF TUESDAY’S TRAGEDY TO RECEIVE TAX RELIEF UNDER BIPARTISAN BILL OFFERED BY THOMAS AND RANGEL

The victims of Tuesday’s terrorist attacks would receive the tax benefits normally extended to victims of war under legislation being considered this afternoon by the U.S. House of Representatives. The bill would bring direct and immediate tax relief to individuals affected by Tuesday’s tragic events.

“Our heartfelt sympathies go out to the victims and their families,” said Ways and Means Chairman Bill Thomas (R-California). “We cannot lift the heavy burden of their loss from their shoulders.  We cannot bring back their loved ones. But we can and will relieve the immediate financial pressures imposed by tax obligations.”

 “Those who died in these attacks and their aftermath are heroes of war,” said Ranking Member Charles Rangel (D-New York). “The Federal government must do all it can to honor those heroes and offer assistance to those left behind so that their grief is not deepened by any additional suffering.  The very least that must be done is give their families all of the benefits we have offered to the families of those killed in war zones in the past.” He continued, “I thank Chairman Thomas for making this action as absolutely bipartisan as it must be in response to such an atrocity.”

 The legislation being considered today includes the following provisions:

Reduction of Estate Tax

• Section 2201 of the Tax Code provides an estate tax reduction for Members of the armed forces who are killed while serving in a combat zone or who die as a result of injuries suffered while serving in a combat zone.  The provision reduces estate tax liability by more than half.

• The proposal would extend this estate tax treatment to individuals who were killed as a result of Tuesday’s terrorist attack or who die as a result of injuries suffered from that attack. 

Exemption from Income Tax in the Year of Death

• Section 692(c) of the Tax Code exempts Federal military and civilian employees from paying Federal income taxes in the year of their death if they die during (or as a result of injuries suffered in) a military or terrorist act outside of the United States. 

• The proposal would extend this Federal income tax relief to individuals who died as a result of Tuesday’s terrorist attack or who die from injuries suffered as a result of that attack.

Exempt United Airline Payments to Passengers from Tax

• The proposal would clarify that the $25,000 per passenger payments made by United Airline will be exempt from Federal income taxes, if such a clarification is needed.  Any similar payments made by American Airlines would receive similar treatment.

Exempt FEMA Assistance Payments from Tax

• The proposal would ensure that assistance payments from the Federal Emergency Management Agency are exempt from Federal income tax.

Click here for a copy of the bill, H.R. 2884, "Victims of Terrorism Relief Act of 2001."