Jason Smith Leads Discussion On Bipartisan Tax Legislation To ‘Support Disaster Victims’

4 months ago

During House floor remarks on Tuesday, Rep. Jason Smith (R-MO) led a discussion about the Federal Disaster Tax Relief Act.

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Transcript

00:00 Thank you, Mr. Speaker. I rise today in support of HR 5863, the Federal Disaster Tax Relief Act,

00:08 introduced by my Ways and Means Committee colleague, Representative Greg Stubbe of Florida.

00:13 This legislation was approved last year by the Ways and Means Committee,

00:17 38 to 0,

00:20 because families and communities across the country who suffered disasters need support.

00:27 In fact, bipartisan support for this legislation was so strong that it was approved a second time

00:34 by the Ways and Means Committee as part of the Tax Relief for American Families and Workers Act.

00:39 This legislation not only helps victims of disasters,

00:43 but also provides broad and immediate tax relief for American workers, farmers,

00:49 families, and small businesses, which is why the House of Representatives passed it with 84%

00:56 support earlier this year. I encourage my Senate colleagues to take up that legislation

01:01 to support disaster victims and help the millions of Americans treading water in today's economy.

01:07 The Federal Disaster Tax Relief Act provides assistance to communities across the country,

01:14 bringing relief to those recovering and rebuilding after tragic floods and tornadoes,

01:21 like those that affected communities in my home state of Missouri in the winter of

01:26 2021 and the summer of 2023.

01:29 Hurricanes like Hurricane I, Hurricane N, that claimed countless lives in Florida.

01:36 Wildfires like those that devastated communities in California and Hawaii, and the train derailment and

01:43 toxic chemical spill in East Palestine, Ohio.

01:48 I want to commend Representative Stubbe for his leadership on this issue.

01:52 His passion started with his desire to provide help to the families he represents who were devastated by the hurricane.

02:01 But in the interest of getting this done, he broadened his relief effort to include over 300 storms in

02:08 45 states. I encourage all of my colleagues to vote yes on this bill so that we are standing with and

02:16 supporting our fellow neighbors when they are most in need. I reserve.

02:20 The gentleman reserves. The gentleman in California is recognized.

02:22 Thank you, Mr. Speaker. I yield myself as much time as I may consume.

02:28 The gentleman is recognized.

02:29 Thank you, Mr. Speaker. I rise today in strong support of this legislation, and I want to thank

02:35 Chairman Smith of the Ways and Means Committee for all of the good work

02:39 he's done to ensure that we're able to help our constituents who are suffering as a result of natural

02:46 disasters, and to my colleague and friend, Mr. Stubbe, who without his leadership on the Ways and Means Committee,

02:53 we wouldn't be here today. And also, Mr. Lamalfa, my colleague to the north of my district,

03:00 who has worked with me over the years to address one component that is covered by this piece of legislation.

03:09 This has been a long time coming for my constituents. Too long. Way too long.

03:15 This is now the second time in five months that this House has come together to state plainly and in

03:22 bipartisan fashion that Americans should help one another when disaster strikes.

03:28 And while the Senate continues to play politics with what ought to be a bipartisan victory,

03:34 they've been sitting on the tax bill for five months, and I join Chairman Smith in

03:41 calling for them to move the entire bill, because there's so much in that for so many of our constituents

03:48 across the country. And I just want to briefly

03:52 reiterate how we got here today. In my district, wildfires in 2015, 2017, and

04:00 2018

04:02 devastated entire communities across my district and across the state of California.

04:08 Entire towns were destroyed.

04:11 Thousands of people lost homes.

04:13 Dozens of people lost their lives. In the aftermath,

04:18 the courts found that Pacific Gas and Electric was liable for causing some of these fires.

04:25 As part of its subsequent bankruptcy proceedings, the utility established a trust from which fire survivors are

04:33 generally eligible for compensation for losses

04:38 sustained during these fires.

04:40 Let me pause here to say one thing.

04:42 No

04:44 disaster survivor is ever made

04:46 whole.

04:49 No one is ever made whole. People lost their homes and everything in their homes. Family pictures,

04:56 family heirlooms, family records. They lost businesses, and as I said earlier,

05:03 sadly, they lost family members. And while the courts

05:07 eventually created a path to compensation, it took years to get there. Years

05:13 my constituents didn't have. They couldn't wait around for three, four, six years to get a payment from that trust. And

05:21 then because the trust was structured in the form of stock shares, and because stock shares need to be

05:28 monetized carefully and slowly in order to maximize

05:32 return to survivors, the payments to survivors came in batches.

05:37 Nobody is getting, repeat, nobody is getting a hundred percent of what they lost. And

05:44 then to add insult to injury,

05:46 right as our constituents started to get even a little bit of compensation, our

05:52 constituents are told they may actually owe taxes on these payments.

05:57 Because depending upon the taxpayer, the payments may qualify as income. In

06:03 four years of working on this issue,

06:05 I have yet to encounter a single person on either side of the aisle who believes this is fair.

06:13 That's why we've been so successful in passing this legislation

06:17 numerous times out of the Ways and Means Committee and off the floor of this house. This bill has been stalled,

06:25 advanced, then held up. It's been marked up, passed the House, and stalled again.

06:31 The Senate ought to quit dithering on what's an

06:34 objectively good bill for our country and just pass it. But because they are unwilling to do so, we're here again

06:42 tonight to take this matter up. I'm grateful, as I said to my colleagues on both sides of the aisle.

06:49 Mr. Neal, our ranking member on Ways and Means, has been a great colleague and a great champion for this.

06:55 The chairman, Mr. Smith, and as I mentioned earlier,

06:58 Mr. Stube, one of our colleagues on the committee.

07:02 I wish such an unusual strategy to get here wasn't necessary,

07:07 but I'm committed, and I think my colleagues here are committed, to pulling every lever at our disposal

07:13 to get this bill passed. This is a fundamental question of fairness,

07:18 and I urge all my colleagues to vote in favor of this bill, and I reserve the balance of my time.

07:25 The gentleman reserves. The gentleman in Missouri is recognized.

07:28 Thank you. I want to thank

07:30 Congressman Thompson for his advocacy as well on this legislation and helping move it through our committee

07:38 in a very bipartisan effort.

07:40 I yield such time as he may consume to the author of this legislation, the gentleman from Florida, Mr. Stube.

07:48 The gentleman from Florida is recognized.

07:50 Thank you, Mr. Speaker. Thank you, Mr. Chairman.

07:52 Mr. Speaker, I stand in support of H.R. 5863, the Federal Disaster Tax Relief Act of 2023.

07:58 In a historic act last week, a majority of the House of Representatives made clear that the House should act

08:03 to provide tax relief to victims of natural disasters all across America.

08:08 I want to thank every member that stood with me in this fight, and I'm thankful for this bill is finally being debated on the floor.

08:13 On September 28, 2022, southwest Florida was ravaged by Hurricane Ian,

08:18 one of the most devastating hurricanes to ever hit our nation.

08:21 NOAA ranks Hurricane Ian as the third most costliest hurricane in United States history,

08:27 killing nearly 150 people and causing billions of dollars in damages.

08:31 For Floridians, we know that the recovery from Hurricane Ian is far from over.

08:35 Despite experiencing numerous hurricanes yearly, Floridians are resilient.

08:39 I have been working tirelessly on disaster relief legislation for Floridians

08:43 to recover from various storms that have decimated so many communities around our state.

08:48 The most recurring and pressing issue I hear in my district is that the Suncoast is still waiting for Congress to do its job to provide much-needed relief.

08:57 More than a year and a half after the landfall of Hurricane Ian,

09:00 Congress has yet to provide disaster relief for those impacted financially by Ian.

09:05 I've received thousands of letters, calls, and pleas for help from people in my district,

09:10 who have incurred tens of thousands of dollars in recovery expenses and are having a hard time getting ahead.

09:16 On eight separate occasions since 2002, Congress has provided tax relief to victims of natural disasters.

09:23 Since 2021, over 300 disasters across 47 states have been declared without Congress taking action.

09:31 Additionally, wildfires across the western United States and Maui have greatly impacted many Americans who have not received any relief from this body.

09:39 Similarly, the victims of the East Palestine train derailment are facing the same situation.

09:44 This bill helps everyday Americans and provides them the ability to deduct their expenses from a natural disaster from their taxes.

09:52 This bill will not just aid Hurricane Ian victims.

09:55 It will provide relief to the millions of Americans around the country who are victims of federally declared disasters.

10:01 It will help victims of flooding in the Midwest.

10:03 In the Pacific Northwest, victims of wildfires will get the relief they deserve.

10:08 Those affected by severe winter storms in the Northeast will benefit from this tax deduction.

10:13 Our friends in Texas who have experienced damage from a wide variety of disasters, including winter storms, tornadoes, flooding, and fires.

10:20 In short, this is not a problem that just affects Florida or California.

10:23 This impacts millions of American families and Congress must act to provide them relief.

10:29 I'm grateful to be supported by many of my colleagues on both sides of the aisle to lead the fight for Americans all across the country to get disaster relief.

10:37 Disaster relief is not a Democrat problem or a Republican problem.

10:40 It's something that all of us face.

10:42 I would like to give a sincere thanks to members and staff who have worked tirelessly on this bill.

10:47 I would like to give a special thanks to California Congressman Mike Thompson, Jimmy Panetta, Doug LaMalfa,

10:53 as well as Congresswoman Jill Takuda of Hawaii for their leadership on this effort.

10:58 I would also like to thank former Congressman Bill Johnson who represented East Palestine, Ohio, and played an important role with this bill.

11:05 And a special thanks to Ways and Means Committee Chairman Jason Smith for passing this bill out of the committee.

11:10 The constituents of my district and the districts each of you represent are in need of help.

11:15 And today I urge swift passage of this bill on the House floor and urge expeditious consideration in the Senate

11:20 so that Americans all across America can get much needed relief. I yield back.

11:25 The gentleman from Florida yields back. The gentleman from Missouri reserves. The gentleman from California is recognized.

11:29 Mr. Speaker, I'd like to yield two minutes to the gentlelady from Hawaii, Ms. Takuda,

11:35 who knows firsthand the tragedy of wildfire. Her constituents experienced a horrific, horrific disaster in her district, in her home state.

11:46 And she has been there with them every step of the way and she's here with on their behalf again tonight.

11:53 Thank you for your support and I yield. The gentlelady from Hawaii is recognized for two minutes.

11:57 Thank you, Mr. Speaker. I rise in strong support of H.R. 5863, the Federal Disaster Tax Relief Act of 2023.

12:05 It will keep survivors' hard-earned money in their pockets and help them in getting their lives back to normal as soon as possible, whatever that normal might look like.

12:15 Seeing the overwhelming challenges faced by the survivors of the Maui wildfires, our ohana,

12:20 I introduced H.R. 5873, the Natural Disaster Tax Relief Act of 2023, last October, to lessen the tax burden faced by disaster survivors

12:30 and ensure they have the financial resources to support their ohana.

12:34 Since then, far too many people continue to struggle with recovery costs that no one could ever budget for.

12:40 Across our countries, through all disasters, current, those to come, and so far in the past,

12:46 they've reached deep into their savings, they've gone into debt to feed their keiki, to cover their mortgages,

12:52 to pay for education and health care costs, and rebuild their homes, businesses, and livelihoods.

12:58 I want to thank my friends and colleagues, Congressman Greg Stubbe and Doug LaMalfa,

13:01 for incorporating elements of my legislation into this bill as we continue to fight for its critical passage.

13:08 Like me, they know all too well that there will never be enough to replace all that people lost.

13:14 As the good congressman from California mentioned, no one will be made whole.

13:19 But that being said, anything, anything we can do to lighten the tax burdens and the financial struggles they face

13:25 will go a long way to rebuilding lives and rebuilding communities.

13:29 I am proud to join Congressman Stubbe, LaMalfa, and Thompson on the floor today to pass this bill out of the House,

13:35 and I implore the Senate to embrace their kuleana and pass this bill.

13:40 Disaster does not discriminate. It doesn't care if you're Democrat, Independent, or Republican.

13:46 But when it hits, people need help.

13:49 We must pass this critical bipartisan piece of legislation now.

13:53 Thank you, Mr. Speaker, and I yield back.

13:55 The gentleman from California Reserves and the gentleman from Missouri is recognized.

14:03 Thank you, Mr. Speaker. I yield such time as he may consume.

14:06 The gentleman from California, Mr. LaMalfa.

14:09 The gentleman from California is recognized.

14:11 Thank you, Mr. Speaker, and thank you so much, Chairman Smith, for helping us with our legislation all this time here.

14:19 And I'm very grateful also to Mr. Stubbe for allowing our bill to be piggybacked with his in this effort here,

14:28 as well as the 7024 Tax Relief for American Families and Workers Act, which is still waiting over in the Senate.

14:34 I hope we get that one, but I'm grateful for everybody to join this effort here today,

14:39 a strong bipartisan effort to move this narrower, much more very important disaster relief package to help people all across the country, has been said.

14:51 My colleague, Mike Thompson, thank you so much for our partnership on this.

14:54 It's taken some time and we're getting there. I'm glad to see.

14:59 And, you know, with the losses that we've suffered along with our constituents, our constituents, of course, especially,

15:07 it's very painful to see and to not be able to go back to them and say we've gotten a result yet.

15:14 But my own constituents, I commend them. I'm grateful for them.

15:18 They've been very, very patient. The victims of the Camp Fire, 85 lives were lost.

15:24 Zog Fire, my neighbors down there in Santa Rosa area.

15:29 And of course, my good friend, Miss Takuda over there, Lahaina,

15:32 who suffered even more greatly loss of life than what ours had been a record in Paradise.

15:37 We don't want to set records. We want to get results.

15:39 And so it's just been a great partnership on top of on top of disaster and heartache.

15:45 So just picture this, though, as I talk about Paradise, you wake up in the morning, you hear there's a fire.

15:51 All of a sudden there's an evacuation. People are crowding the narrow roadways,

15:57 trying to get up the hill or down the hill out of town, barely make it in some cases,

16:02 scorched vehicles, tires on fire, all that.

16:06 They're seeing their rearview mirror, their neighborhood engulfed in flames, their houses going down.

16:12 All their mementos, as was mentioned, are in them. They're wondering, did their neighbor get out?

16:16 Did the elderly lady get up the street? Thank goodness there was a firefighter or neighbor

16:20 that maybe helped that lady get out just in time so there was even not even worse loss of life.

16:27 The resilience of these folks in the fires that I've had in my district and my neighbors

16:34 and my other neighboring states is just amazing as they've stuck with us on this.

16:39 So a settlement happened with the utility to somehow partly compensate.

16:45 And indeed, they'll never be made whole. My colleagues have pointed that out well.

16:49 They can never be made whole, even with a lot of money.

16:53 That settlement should not be a taxable event.

16:57 Now think about it. Just break that down for a minute.

16:59 You're in your home. You've been paying off your mortgage. Maybe it's already paid off.

17:03 You've got your equity in your home. So this disaster happens. You lose your home.

17:08 All of a sudden you've got to rearrange your life. You've got to rebuild your life.

17:12 Well, that portion of that equity that now is going to be compensated for partly by the settlement with the utility,

17:18 that portion of your home is now a newly taxable event because of the IRS interpretation on that.

17:25 How is that right? How is that fair at all?

17:27 That you have ripped out of your life, your home, your family, whatever may have happened to you personally,

17:34 and now you have a taxable event on top of that piece of equity that was in your home

17:39 because of a bad interpretation here. That's why this legislation is necessary.

17:44 That's why it's been so strongly supported on both sides of the aisle all through the process here.

17:50 That's why we need to overcome these hurdles we have, whether it's over in the Senate or what have you, to get this done.

17:55 People deserve to have that predictability, that sustainability of their life,

18:04 to be able to put themselves back into a good way again.

18:08 So, fire victims, Camp Fire in my area, Zog Fire, our other neighbors there, relief is on the way here.

18:17 This has been a tremendous effort, a little out of the ordinary, to get this legislation back to this floor here tonight,

18:23 and I think it will pass resoundingly. I hope so. I ask for everybody's aye vote.

18:27 Again, I appreciate all my colleagues, both sides of the aisle, for stepping forward and doing right by the fire victims,

18:34 by the hurricane victims, by those folks in East Palestine, and others that are going to be added into this.

18:40 This is how legislation should look. This is how a country pulls together, and I'm glad to be part of it.

18:46 I yield back. Thank you.

18:47 The gentleman in California yields back. The gentleman in Missouri Reserves.

18:50 The gentleman in California is recognized.

18:52 Mr. Speaker, I have no further speakers, and I'm prepared to close.

18:56 We're prepared to close.

18:57 The gentleman is recognized.

18:59 Thank you, Mr. Speaker. Again, I'd like to thank Mr. Stube, Mr. LaMalfa, Chairman Smith,

19:06 and all of our colleagues on Ways and Means who worked so hard to bring this bill to fruition,

19:13 not once, not twice, but now three times.

19:16 And our friend from Hawaii, I know how difficult that is in your state, in your area,

19:24 what a devastating fire that was, and I know how hard you're working for your constituents,

19:29 and thank you for being on the floor today.

19:32 Mr. Speaker, Florida, Texas, South Carolina, Louisiana, Kentucky, Oregon, New York, California,

19:43 and over a dozen other states have been devastated by disasters.

19:50 There's not a single colleague in this House who should have to go through a disaster to know how bad it is.

19:57 This devastates communities. It devastates people's lives.

20:02 It disrupts communities. It disrupts people's lives.

20:06 People are killed. Businesses are lost. Homes and heirlooms are lost and destroyed.

20:13 The least that we can do is to come to the aid of our constituents, our fellow Americans,

20:21 in time of disaster and in time of great need.

20:25 And that's what we're doing today.

20:27 This is commendable work by the Ways and Means Committee,

20:31 and every member in this House should be proud to come to the floor

20:37 and vote to support their friends, their neighbors, their constituents in these very, very dark times.

20:46 And I yield back the balance of my time.

20:48 The gentleman in California yields back. The gentleman in Missouri is recognized.

20:51 Thank you, Mr. Speaker. Mr. Speaker, I would once again just commend the great work and advocacy

20:59 that Mr. Stubbe, Mr. LaMoffa, Mr. Thompson, I can tell you they've been advocating

21:06 since I've been chairman that this is an important piece of legislation to get across the finish line,

21:12 and let's hope that the United States Senate does the same thing.

21:16 With that, I urge all members to support this bill, and I yield back.

21:20 The question is, will the House spend the rules and pass the bill HR 5863?

21:25 As amended, those in favor say aye. Those opposed say no.

21:30 In the opinion of the Chair, two-thirds being in the affirmative.

21:32 Mr. Speaker. Mr. Woodruff, a gentleman from Missouri, seek recognition.

21:36 Mr. Speaker, on that I demand the yeas and nays.

21:41 The yeas and nays are requested. All those in favor taking this vote by the yeas and nays

21:44 will rise and remain standing until counted.

21:47 A sufficient number having risen, the yeas and nays are ordered.

21:50 Pursuant to Clause 8 of the Rule 20, further proceedings on this question will be postponed.

21:55 [ Silence ]

Jason Smith Leads Discussion On Bipartisan Tax Legislation To ‘Support Disaster Victims’

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