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Advocacy Blog
Tuesday, September 13, 2005
Senate Rushes to Address Katrina Relief
The Senate this week may rush through a Katrina tax-relief
package.
For individuals, the package would exempt taxes on debt
that is forgiven and waive the penalty tax on early retirement-plan
withdrawals. Other incentives include a tax credit to encourage
employers to hire Katrina evacuees, and for companies in the disaster
zone to temporarily retain evacuees on their payroll. For people who
house evacuees, the legislation would provide an additional $500
personal exemption for every dislocated person not already included on
a taxpayer's return. A slew of other provisions would encourage
donations of books, food and cash.
The Senate might consider two other
hurricane-related bills this week to adjust federal flood insurance and
welfare laws. Both measures have cleared the House.
The tax package's total cost could run between $3
billion and $7 billion, early estimates show. The benefits would be
temporary, with most expiring at the end of this year.
The House Ways and Means Committee will consider
its own slate of hurricane-related tax relief, but aides cautioned that
the House's priorities could differ somewhat.
In a bipartisan statement issued Friday, Ways and
Means members said that in coming weeks they would look at tax relief
for individuals along with changes to unemployment, child support and
foster care laws. Future legislation would address rebuilding
incentives similar to the New York City revitalization efforts after
the Sept. 11, 2001, terrorist attacks, the statement said.
For the press
release
For a summary
of the legislation
Posted by Jennifer Lowe
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