Statements on Introduced Bills and Joint Resolutions

STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

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By Mr. GRASSLEY (for himself, Mr. BAUCUS, Mr. LOTT, Ms. LANDRIEU, Mr. VITTER, Mr. COCHRAN, and Mr. SHELBY):

S. 1696. A bill to provide tax relief for the victims of Hurricane Katrina, to provide incentives for charitable giving, and for other purposes; to the Committee on Finance.

Mr. President, a little over 2 weeks ago, the Gulf Coast region endured a tragedy of historic proportions. I have heard personal accounts of how Americans across this country have come together in a communal effort to help those affected. Congress needs to come together to pass tax relief that will help those in need.

The total damage left in the wake of Hurricane Katrina is unknown. But the latest numbers are overwhelming. 377,000 displaced persons are spread across 33 States and the District of Columbia. They have sought refuge in shelters, hotels, homes, and with family all over the country. They are hungry. They are homeless. And they need our immediate help.

Millions of Americans immediately swung into action to help by donating goods, time, and money to their Gulf Coast neighbors. In my home State of Montana, thousands have risen to the occasion to offer a helping a hand to those who have been hit by the effects of Hurricane Katrina.

Four firefighters have been dispatched from Kalispell to New Orleans to act as community liaisons. Forty-four Montana Red Cross volunteers are already assisting Katrina victims.

Students at Rose Park Elementary School in Billings are making handmade cards to raise money. Players and coaches of the Billings Bulls hockey will hold an auction next week. Each will provide one day's worth of labor and the proceeds will go directly to the Red Cross.

In Three Forks, volunteers with the Veterans for Foreign Wars and Boy Scouts will be combing the streets with buckets asking for donations.

In Bozeman, the local National Guard members and Gallatin County emergency service workers collected cash donations from spectators at the first Montana State University home football game last Saturday. Immediately after the game, a free concert took place and the Red Cross was present to accept contributions.

The Gallatin County Sheriff's Office sent 120 dolls and blankets to children caught in the disaster.

The Greater Gallatin United Way has decided to ``adopt'' Alexandria, Louisiana, a town that has taken in more than 6,500 evacuees, in an effort to focus its giving on one geographic area. Mount Ellis Academy students raised nearly $10,000 for the United Way last Sunday afternoon.

And businesses are also rising to the cause. Ag Express, a Billings-based trucking company, is collecting donations of clothing, blankets, diapers, water and other supplies. The company is working with FEMA and plans to leave Thursday to deliver the load to Baton Rouge, LA.

Wheat Montana Bakery, Carpet One and Corcoran Trucking worked together to send 4,600 loaves of bread and 41,000 hamburger buns to the Astrodome in Houston, TX.

In Three Forks, Hegar's Septic Service is giving $5 to the Red Cross for every septic tank it pumps.

First Security Bank in Bozeman, MT is sending a freight truck with bottled water and medical supplies. They are also donating eight ATM machines to the Louisiana Banker Association. They will be hooked up to temporary banking stations in areas that already have electricity.

Mr. President, I am proud of the spirit and generosity of the citizens and businesses of Montana and across this country. It is with this spirit in mind that I offer a tax relief package for the victims of this tragedy. My good friend Senator GRASSLEY and I worked closely with our Senate Colleagues in this effort. All six Senators from the affected States are cosponsors.

The relief package is aimed at four needs of the victims of the hurricane. One, they need cash and they need it fast. Two, they need jobs. Three, they need decent housing. And four, charities need help from Congress so they can help the victims of the hurricane.

First, displaced persons need money. Some of these displaced persons left everything behind. They need cash to buy basic essentials such as food and water.

Our bill allows victims of Hurricane Katrina to access retirement accounts for immediate cash assistance. Under current law, there is a 10 percent penalty for early distributions of money in these accounts. We waive that penalty and allow displaced persons to re-contribute to the retirement account over a 3-year period.

Second, many of these displaced persons want to get back into the workforce. We provide businesses with the tools they need to hire displaced workers. The Work Opportunity Tax Credit allows employers to claim a credit against wages paid to new workers that face barriers to employment. It applies to low-income families, veterans and other targeted groups. We expand the Work Opportunity Tax Credit to cover all survivors of Hurricane Katrina who lived in the disaster zone and became unemployed as a result of the hurricane.

We also allow employers located in the disaster zone to take a 40 percent tax credit on wages paid to employees on the first $6,000 of pay.

Third, the people affected by this tragedy need shelter. They need a warm, safe place to rest. Many folks across the country have opened up their hearts and opened up their homes. But it is not easy. It means extra living expenses--the water bill will be higher, the electric bill will be higher, and the grocery bill will be higher. This is a considerable burden that folks are doing voluntarily, out of the goodness of their hearts. We need to help.

That's why we allow individuals to claim an additional personal exemption of $500 for each displaced person they shelter for a minimum of 60 days. This money will help offset the costs incurred by these generous individuals.

Finally, the victims need the generosity of individuals and businesses across this country. There has been a surge in giving to charitable organizations and we should encourage this activity. Our bill provides incentives for corporations to increase gifts of cash, food, books and other items sorely needed in the affected areas and communities.

We also allow taxpayers to transfer money in retirement accounts to a charitable organizations tax free.

The Nation is depending on Congress to act, and to act quickly. I think we have responded with a good bill that provides swift relief for the millions affected by this catastrophe.

Hurricane Katrina will exacerbate the existing problems of poverty and the working poor. The images we have seen of Katrina's poverty-stricken victims over the last few weeks should serve as a wake-up call to policymakers--we must do more to help them help themselves.

I am currently drafting changes to the tax code which will enhance current incentives for the working poor and especially those with children. I look forward to working with my Colleagues in this effort as we continue to help those affected by Hurricane Katrina get back on their feet.

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