Unanimous Vote Grants Tax Relief To Families Of Attack Victims

by Mike Godfrey, Tax-News.com, Washington

17 September 2001

It was announced last week that a 418-0 vote in the US House of Representatives passed a bill granting tax relief to the families of those killed in the New York, Washington, and Pennsylvania tragedies.

The bill provides that taxes on the estates of the victims of Tuesday's incidents will be greatly reduced, and that the families of victims will be exempted from federal income taxes for one year. Compensation payments made by an airline or Federal Emergency Management Agency will also be exempt from federal taxes.

The authorities recognise that this will be small comfort to grieving families at the moment, but believe that it will be appreciated in the long run. 'It may not seem to be meaningful now,' explained House Ways and Means Committee chairman Bill Thomas, 'but I can tell you a few months from now when they are sitting doing those very difficult accounting things to realise their tax obligations for this year have been forgiven will be a significant gesture.'

Thomas also suggested that lawmakers are considering a parcel of business tax incentives, including investment credits, accelerated depreciation schedules, and the hotly disputed capital gains tax reduction, in order to create a 'reasonable supportive environment for short-term business investment' and stimulate the sluggish US economy. It is believed that this economic package may come under discussion as early as next week.

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