Military Families Financial Security Act

Madam Speaker, I move to suspend the rules and pass the bill (H.R. 3997) to amend the Internal Revenue Code of 1986 to provide earnings assistance and tax relief to members of the uniformed services, volunteer firefighters, and Peace Corps volunteers, and for other purposes, as amended.

Madam Speaker, Martin Luther King said, ``Everybody can be great because anybody can serve. You only need a heart full of grace and a soul generated by love.''

Those that volunteer to serve our country deserve our thanks and our support. Members of our Armed Forces make tremendous sacrifices as they honorably perform their duties and deserve so much in return for their service.

The Heroes Earnings Assistance and Relief Act is an important piece of legislation that would eliminate many inequities that presently exist in Federal statutes affecting those performing service to our country.

The bill makes several improvements in the Tax Code for servicemembers and their families. It includes a provision to remove obstacles for Americans who wish to serve our Nation overseas through the Peace Corps by providing relief from capital gains taxes on the sale of a home.

Additionally, the bill makes several important changes to the Supplemental Security Income program, known as SSI. The SSI program provides critical benefits for servicemembers who are caring for a severely disabled spouse or child. This bill would change SSI's treatment of certain forms of military compensation when determining SSI eligibility and benefit amounts for military families. As a result, more military families will be able to benefit from this important safety net. This bill would remove penalties that presently exist for blind,

disabled, and elderly veterans under the SSI program.

And, finally, the bill would end the disparate treatment of compensation that is paid to some AmeriCorps volunteers but not to others under the SSI program. This modest change would enable disabled Americans to serve their country and their community despite their disability. For some Americans, AmeriCorps can provide a pathway for the disabled to gain the skills to reenter the workforce.

At this time, I would like to enter into the Record the following documents.

Stories of Americans With Disabilities in National Service

People with disabilities volunteer for the same reasons

that anyone else does--to give back to their communities, to

improve their surroundings, and to be active and engaged in

life. Some national service participants who have

disabilities volunteer with organizations that serve other

people with disabilities, while others focus their efforts on

helping to meet a wide range of critical community needs. The

individuals profiled here represent a small sampling of the

many people with disabilities involved in the Corporation for

National and Community Service's Senior Corps, AmeriCorps,

and Learn and Serve America programs.

americorps*state and national

Steve Hoad, AmeriCorps Alumnus 2001, AmeriCorps*VISTA

Alumnus 2003 Augusta, Maine; disability: blind.

Steve Hoad served with the Maine Conservation Corps in

Augusta as a coordinator of volunteers on a statewide basis.

The program, called SERVE--Maine (State Environmental

Resource Volunteer Effort for Maine), identifies volunteers

for outdoor or natural resource projects sponsored by

government agencies or nonprofit groups. As a person who is

blind, Steve thinks it's important for lots of organizations,

including the Corporation for National and Community Service,

to address inclusion. Steve feels his contributions are

important for the additional reason that, in his opinion, ``.

. . people with disabilities have been left on the sidelines

and pushed into isolation by a couple of different ideas that

people seem to have. One is that because maybe someone looks

different or acts differently or speaks differently, that

they're not as smart; and the other is that because someone

is disabled, they can't contribute anything, they need to be

helped. Those two ideas become very exclusionary.''

americorps*vista

Dawn Facka, AmeriCorps*VISTA Alumna 2001, Anchorage,

Alaska; current location: Charleston, South Carolina;

disability: hearing impaired.

Dawn Facka, a service-learning coordinator with

AmeriCorps*VISTA, advocates for people with disabilities and

serves as a role model for young men and women with

disabilities that come to serve in AmeriCorps Programs. In

addition, she teaches others about the importance of

inclusion and facilitates disability awareness and diversity

training to AmeriCorps*NCCC members. She strives to create a

work environment that is welcoming and understanding to those

individuals with disabilities by advocating for community

involvement and supporting organizations that support and

help individuals with disabilities. She says that ``If

AmeriCorps, had not opened the doors of opportunity to me, I

most likely would still be ashamed and embarrassed of who I

am and [how] society has labeled me. I would still be

apologizing to people who did not tolerate or accept my

hearing loss. I can't begin to show my gratitude . . . to

AmeriCorps for showing me another world.''

americorps*nccc

Joe Tierney, AmeriCorps*NCCC Alumnus 2001 and 2002,

Charleston, South Carolina; current location: Boston,

Massachusetts; disability: traumatic brain injury.

Joe Tierney dedicated two years of his life to service with

Americorps*NCCC. During these years he tutored children,

built houses, designed and built wheelchair ramps, surveyed

and mapped a historical graveyard, blazed trails, worked at a

camp for children and adults with disabilities, and much

more. Of his time there he writes, ``Throughout my service I

met some amazing individuals, traveled to some fascinating

locations, and learned a variety of skills, but most

importantly my service gave me the opportunity to recover,

the ability to experience life with a smile. I made the

decision to join AmeriCorps because I felt an obligation to

give back, I understood that I was very fortunate to have

recovered and that I would have never done it without the

help of many thoughtful, committed, competent individuals.''

learn and serve america

Jared (not his real name), Learn and Serve America Alumnus

2002, Hampshire, Massachusetts; current location: Hampshire,

Massachusetts; disability: significant disabilities.

Jared (not his real name), a high school student with

significant disabilities, participated fully in a water

quality testing initiative though a school-based service-

learning project in Western Massachusetts. During the

project, Jared spoke of all that he learned about water

quality and the effects on the environment. His family and

teachers were impressed with the project because it provided

Jared with a meaningful experience to give back to his

community as well as taught him vital life skills. His mother

speaks of the project as being one of the few opportunities

Jared has had to mingle with other students outside of

special education.

rsvp

Dean Homerick, RSVP Volunteer, current location: Lexington,

Ohio; disability: debilitating arthritis.

Dean Homerick began service as an RSVP volunteer as soon as

he became eligible--the day he turned 55. He is involved in

environmental issues and emergency operations. He volunteers

regularly at the Columbus Zoo, participating in education

programs to teach children about animals, as well as

volunteering at a local nature center and at the Ohio Bird

Sanctuary, where he edits a monthly newsletter. He also

volunteers for the American Red Cross and is the volunteer

coordinator for the Richland County Emergency Operations

Center, charged with alerting volunteers in the event of an

emergency.

corporation for national and community service

The Corporation for National and Community Service provides

opportunities for Americans of all ages and backgrounds to

serve their communities and country through three programs:

Senior Corps, AmeriCorps, and Learn and Serve America. This

year, more than 1.6 million individuals will participate in

the Corporation's programs, helping thousands of nonprofit

organizations, faith- based groups, schools, and government

agencies build their capacity to meet critical local needs in

education, the environment, public safety, disaster relief,

and other areas. Together with the USA Freedom Corps, the

Corporation is working to build a culture of citizenship,

service, and responsibility in America.

Madam Speaker, I yield 2 minutes to the gentleman from Massachusetts (Mr. Neal).

Madam Speaker, I ask unanimous consent to allow Mr. Neal to handle the rest of the time.

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 6081) to amend the Internal Revenue Code of 1986 to provide benefits for military personnel, and for other purposes, as amended.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, the bill before us has been passed before, and they call it the HEART bill, Heroes Earnings Assistance and Relief Tax Act of 2008. I would prefer to call it the ``Thank You'' bill. Thank you for the tens of thousands of American men and women who have come to America's call to fight this war and to place themselves at risk because our Commander in Chief and our Nation have called them.

It is very difficult for me to think of any people that we should be saying ``thank you'' more to than this group, who are not Democrats and Republicans, are not politicians, but people whom America has depended on since its very beginning, and, that is, people who are willing to make the ultimate sacrifice because their country asked them to do it.

We have recently passed a bill which is the equivalent, if not expanded, the GI Bill, so that those that do get back, many of them without limbs, many of them without jobs, would be able to get a decent education. This kind of enhances the ability for them to get their pensions, to get homes, and to remove the impediments that these brave people deserve. And one of the things that we're proudest of is that we have removed some type of impediment that will allow our fighting soldiers to be able to get the benefits of some of our tax laws even though they have married immigrants. So it is something that I am certain that everyone in this House and most all Americans would be supporting.

What a great honor it is for me to yield the balance of my time in support of this bill to Admiral Joe Sestak from the Seventh District of Pennsylvania. It's so easy for all of us to talk about sacrifices and so seldom that we find someone who has dedicated 31 years of his very young life for the defense of this great Nation of ours.

He has been the commander of an aircraft carrier of 30 U.S. and allied ships, over 15,000 sailors, 100 aircrafts; and this is only part of what the three-star Admiral in the United States Navy has done. How lucky we are in this Nation and, more specifically, in this Congress to have this distinguished Member speak in support of this bill, one who probably knows more about the needs of our service people than most of us ever hope to find out.

So with the Speaker's permission and unanimous consent of this body, I ask you to allow me to yield the balance of my time for purposes of picking other speakers to Congressman/Representative/Admiral Joe Sestak of the Seventh District of Pennsylvania.

Mr. Speaker, today, we may each have our own convictions about this war, and no matter what those may be, I think I can safely say that we stand united in our support for our troops and their families.

No one here today can challenge the commitment, the dedication, or the bravery of our men and women who have responded to this national call.

They have made sacrifices that very few Americans have ever been called on to make--many have paid with their lives, and many others with the loss of limbs and mental injuries we will never be able to comprehend.

We all know the great value of education benefits for our military. I wil1. continue to fight for an increase that exceeds what our President has requested in GI education benefits and in military pay for our sons and daughters who serve in the military. Our men and women need it and they have earned every bit of it, and more.

The bill being considered today cannot make up for the debt we owe to these men and women and their families. We cannot make up for the loss of life and limb and the mental anguish they will endure.

But today, we will play a small positive role that I know is supported by every Member of this body. Today, we will vote to pass a small token of our gratitude--a small step in the right direction.

This bill is expected to be taken up by the Senate after we pass it here today and sent to the President this week. This is very fitting as we leave to celebrate Memorial Day--a day of remembrance for all who sacrificed in war for our country.

There is a provision in this bill that has been added since we passed the bill last year. The

provision would ensure that a member of the military, who is married to an immigrant spouse would qualify for the stimulus rebate payment even if such spouse does not yet have a Social Security number.

This fix was necessary because in the zeal to impose anti-immigrant philosophy, language was added to the legislation for the stimulus rebate payments which now has a negative effect on some of our military and their families, even as they are off fighting a war.

This should serve as a great lesson in caution and being circumspect before we allow our deep-seated feelings to get the best of us.

We must learn from these lessons even as we fight to improve the lives of those who fight for our country through improved GI education benefits, pay increase, better health care services, and increased disability benefits.

This bill has been a labor of love. We passed a very similar bill (H.R. 3997) 410-0 on December 18, 2009, and had hoped to get it signed into law before the end of last year. Yet, despite the total bipartisan nature of this bill, we were unable to get it to the President's desk before the end of December, 2007. So, here we are again. Persistent to the end.

This bill is small but means a lot to many people. The Committee has received more calls on this bill than we could have imagined. People are calling to find out when the bill will become law.

Today gives us fresh hope--it looks like we will actually do it this time. I am proud to be a part of this small but important effort for our military men and women and their families who continue to give so much to our country.

Madam Speaker, I yield myself such time as I may consume.

Madam Speaker, we cannot express enough the tremendous debt of gratitude we owe the brave men and women who defend our freedoms every day. It is with great honor that I join my colleagues on the House floor today and

help lead the debate on H.R. 3997, the Heroes Earnings Assistance and Relief Tax Act. This legislation is more than a simple cleanup of some of the disincentives, distortions and oversights that have disadvantaged our active duty military and veterans in the Tax Code.

This legislation is significant because it sends a clear message that even as many of our best and brightest are currently in harm's way in theaters where they are facing hostile fire, this Congress is prepared to work on a bipartisan basis to consider every option and every opportunity to improve the lives of their families and their predecessors.

The $2.3 billion tax package which was reported out of the House Ways and Means Committee last week will bolster tax and Social Security benefits for military servicemembers, veterans and volunteers. This important measure will allow our active military men and women to benefit from the earned income tax credit by allowing them to pair their nontaxable combat pay with their earned income.

H.R. 3997 will ease the financial burden of losing a loved one by allowing survivors to put military death benefits into Roth IRAs without limitations. Furthermore, this legislation will ensure military Reservists will have the opportunity to make penalty-free withdrawals from their retirement plans, including 401(k) and IRA accounts. If deployed, these men and women will be able to provide the financial footing their families may depend on during their absence.

I am also pleased that the majority, in bringing this bill to the floor today, included in it an amendment I offered and withdrew in committee. I appreciate the bipartisan support displayed on this critical issue. Specifically, my provision will expand Social Security income benefits to our aged, disabled and blind veterans.

Under current law, the Social Security Administration counts annuities paid by State governments to veterans who are blind, disabled or aged as earned income. As a result, veterans in certain States like Pennsylvania, which provides paralyzed vets with an $1,800-per-year annuity, may be denied Federal benefits or receive a lower amount than veterans in States that do not provide such annuities. H.R. 3997 will correct this inequity in the law and ensure that annuities awarded by States to vets with certain disabilities are disregarded when determining SSI benefits.

Madam Speaker, the dedication and bravery made by American soldiers have allowed us to exercise our everyday freedoms. Many have made the ultimate sacrifice, and it is our duty in Congress to make sure that veterans rights and interests are protected and served. As many of us prepare for this upcoming Veterans Day, this legislation reaches our Chamber at the proper time and includes the right incentives to help our men and women in uniform. Overall, this legislation is a bundle of commonsense changes to help those who have contributed to the defense of our country and the protection of our freedoms. I am proud to be a supporter of this initiative, and I retain the balance of my time.

Madam Speaker, at this point, I would like to yield 2 minutes to a leader on our committee, the distinguished gentleman from Illinois (Mr. Weller).

Madam Speaker, it is now my privilege to yield 2 minutes to another member of our committee and a strong advocate of the cause of veterans, the gentleman from Texas (Mr. Brady).

Madam Speaker, may I inquire how much time is remaining on both sides.

Madam Speaker, at this point, it would be my honor to yield 4 minutes to a leader in our committee who made a seminal contribution to the SSI component of this legislation, the gentleman from New York (Mr. Reynolds).

(Mr. REYNOLDS asked and was given permission to revise and extend his remarks.)

Madam Speaker, it is now my privilege to yield 3 minutes to the gentleman from North Carolina (Mr. Jones), a strong advocate of the cause of veterans.

Madam Speaker, it is now my privilege to yield 4 minutes to the distinguished gentleman from Kansas (Mr. Moran), a true advocate of the veterans, as well as all of the military facilities in his district.

Madam Speaker, I reserve the balance of my time.

Mr. Speaker, may I inquire of the other gentleman, does he have just one more speaker?

Mr. Speaker, I yield myself the balance of my time.

In conclusion, I believe the case has been made compellingly that this legislation consists of many components, but they have been developed within the Ways and Means Committee as a benefit for our veterans and our active duty military.

I don't believe there is a great controversy here. What I do believe is there is a lesson. When Republicans and Democrats work together on a bipartisan basis, when they put aside political posturing, when they put aside ideological poses, when they insist on procedural fairness, then I think we can find common ground to move forward on things that are genuinely important.

I want to particularly credit the chairman of our committee, Mr. Rangel, and the gentleman from Massachusetts, the chairman of our Select Revenue Subcommittee, for having moved this legislation forward and having set a very high standard. And I would like to take credit for the fact that there has been substantial Republican participation in the development of this bill.

This bill, I think, is important to move forward now, but not only for what it consists of, but for what it symbolizes, and that is what this Chamber can achieve when both parties work together.

Mr. Speaker, I yield back the balance of my time.

General Leave

Mr. Speaker, I have asked the nonpartisan Joint Committee on Taxation to make available to the public a technical explanation of the tax provisions of H.R. 6081. The technical explanation expresses the committee's understanding and the legislative intent behind this important legislation. This explanation, document JCX-44-08, is currently available on the Joint Committee's Web site.

General Leave

I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material on H.R. 6081, as amended.

I yield the gentleman from Washington 2 minutes.

(Mr. McDERMOTT asked and was given permission to revise and extend his remarks.)

I yield the gentleman 30 additional seconds.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I joined up in the military during the Vietnam conflict, and at that time, and still today, we don't have human resource departments in the U.S. military. You tend, as a young division officer, to take care of the challenges that your young men and women have, and their families yourself, whether it's an eviction notice or whether it's a health issue, or whether it is, as thousands at that time and through the eighties used to have to go out and get their food stamps in order to continue their quality of life, you took care of them.

This bill takes a significant step, I believe. As Mr. Rangel insinuated, it's a small step, but it is a significant step. I say that because the most moving picture I have ever seen in the Pentagon is one that is across from the Secretary of Defense's office. It's of a young servicemember kneeling in church and alongside of him is his wife and a young child. And under it is this great saying from the Bible, where God turns to Isaiah and says, ``Whom shall I send, and who will go for us?'' and Isaiah replies, ``Here am I. Send me.''

We send them, and we need to welcome them when they come back. The commissary bags also used to have on them, ``The hardest job in the military is a military spouse.'' What this bill does is takes care of the cost of life. But it also is significant that it takes care of the cost of loss of life. Because what distinguishes this profession from anyone else's is that it has the dignity of danger about it, where the loss of life may occur.

So in this bill it ensures if an employer still wants to, even after a death of a servicemember, contribute to his retirement plan, he can. It also then permits the spouse, having lost a servicemember, can actually then place this military gratuity benefit into an IRA without any penalty. It does much for our servicemembers; that lets them take combat pay, for example, and place it towards earned income so that they can move into the middle class as an earned income tax credit.

In my mind, this is an excellent bill that has come out, and it has bipartisan agreement. But the reason I think this is so important today is that our servicemembers returning from overseas, 19 percent of them have post-traumatic stress disorder, 33 percent of them have a mental challenge, from depression to anxiety.

This war is different. In World War II, the average soldier went into battle 182 days. He had time to rest in between major battles to get his nerves back in shape. Our soldiers in Iraq go

outside the wire every day for 15 straight months into a combat-like situation. They are a strong generation, but this war is different.

So therefore as we keep that in mind for those who say, Here am I, send me, we should also keep in mind that what we are doing here is when the great warriors Jonathan and David departed for the last time in the Bible, Jonathan turned to David and said, Tomorrow there shall be a new moon and thou shall be missed because thy seat shall be empty.

This seat should never be empty. It should be filled with a legacy of what they have done for this Nation. This bill, in my mind, takes a step, a small but significant step to remembering that these men and women who have served this Nation should continue to be welcomed home by us with a legacy of thanks that this bill does.

I reserve the balance of my time.

I yield 2 minutes to the gentleman from Illinois.

I yield the gentleman an additional 30 seconds.

Mr. Speaker, I yield 2 minutes to my colleague from Indiana (Mr. Ellsworth).

Mr. Speaker, I yield 2 minutes to my fellow Pennsylvanian (Mr. Altmire).

Mr. Speaker, I yield 2 minutes to the gentlewoman from California (Mrs. Davis).

Mr. Speaker, I yield myself the remainder of my time.

When General Akhromeyev came from the Soviet Union to visit the United States when the Soviet Union was breaking up, Admiral Crowe took him to many places, including an aircraft carrier. When he departed the aircraft carrier, he was asked by Admiral Crowe, Chairman of Our Joint Chiefs of Staff, ``What most impressed you?'' He turned to him and looked him in the eye and said, ``Your enlisted man.''

It is why General Washington, when he established the very first ribbon in the United States Army, a piece of purple ribbon which is today's Purple Heart, dictated that that award would only be given to enlisted men. The enlisted servicemembers are the heart of our military, and this bill is focused upon them. They are the ones who say, ``Here am I. Send me.''

I commend both sides of the aisle for recognizing who most deserves being remembered for the sacrifice to this Nation. It is the enlisted man and woman.

Mr. Speaker, I yield back the remainder of my time.

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

I thank the gentleman from Pennsylvania.

I want to thank both Chairman Rangel and Ranking Member McCrery, as well as Chairman Neal and Chairman McDermott and Ranking Members English and Weller, for their outstanding leadership in crafting this legislation.

Madam Speaker, we come together today not as Democrats and Republicans but as Americans. We are united in our respect for those who wear the uniform of the United States armed services. We are united in our desire to ensure that Federal programs within the Ways and Means Committee's jurisdiction, from the Tax Code to the SSI program, work effectively for members of the military, veterans, first responders and their families. I strongly urge the passage of this legislation.

I would like to highlight two specific provisions in the bill that have been of particular interest to me during my time in Congress. The first provision, section 202, is modeled on legislation, the Blind Veterans Fairness Act, that I first introduced in the year 2000. My legislation would correct a problem in the Federal SSI rules that affects blind veterans in four States, New York, New Jersey, Pennsylvania and Massachusetts, that provide these veterans modest annuities in recognition of the substantial sacrifice they have made in service to our country.

Regrettably, under current Federal law, these State annuities actually reduce any SSI payments for which blind veterans would otherwise be eligible. As we heard from Michelle LaRock of New York's Division of Veterans' Affairs at our Ways and Means Committee hearing 3 weeks ago, this quirk in the Federal SSI rules creates a hardship not only for the affected veterans themselves, but for the States that administer these annuity programs as well.

As in years past, the bill I have introduced in the 110th Congress, H.R. 649, has enjoyed bipartisan support. It has been strongly endorsed by the Blinded Veterans Association. I would also like to publicly thank Chairman Rangel, not just the Chair of our committee but the dean of my State's congressional delegation, for his cosponsorship of prior versions of this bill, and I look forward to working closely with him to see the proposal finally enacted into law.

Let me turn briefly to a separate provision, section 107 of the bill, which will permanently allow penalty-free withdrawals from IRAs, 401(k)'s and other retirement funds for Reservists and National Guardsmen called to active duty. As we all know, when Guardsmen and Reservists are called up, they often face significant reductions in pay compared to their civilian salaries, putting an economic strain on their families.

To lessen this economic hardship, many of them chose to draw down on their retirement funds. Unfortunately, under prior law, they faced a 10 percent early withdrawal tax when they did so, and they faced restrictions on making repayments to their retirement funds upon returning from active duty.

Last year's Pension Protection Act provided relief from this penalty tax and permitted unlimited repayments within 2 years after leaving active duty, but only for Guardsmen or Reservists called to active duty before December 31, 2007.

To ensure that this important relief remains available on a permanent basis going forward, I introduced H.R. 867, the Guardsmen and Reservist Tax Fairness Act, on February 7 of this year. This legislation has also attracted a bipartisan group of cosponsors, as well as endorsements from several leading veteran service organizations. I look forward to seeing these commonsense changes enacted into law over the coming weeks.

I urge a ``yes'' vote.

Blinded Veterans Association,

Washington, DC, February 9, 2007.

Hon. Thomas Reynolds,

House of Representatives,

Washington, DC.

Dear Representative Reynolds: On behalf of the Blinded

Veterans Association (BVA), the only congressionally

chartered Veterans Service Organization exclusively dedicated

to serving the needs of our Nation's blinded veterans and

their families we commend you for the introduction of H.R.

649 ``Blind Veterans Fairness Act.'' BVA is grateful to you

for sponsoring this bill for those blind veterans who have

their state annuities counted against the income levels by

Social Security. Cornell University Disability Statistics

research has found that the poverty rates for the disabled

working age population in 2004, ages 21-64, has risen to 3.33

times the rate of poverty for the non-disabled population.

They also found that the poverty rate for those with a

sensory disability in this age group was 24.6% in 2005 as

compared to 9.3% for the non-disability population.

These annuities from the states are clearly meant as a

``gift'' to help prevent these veterans from falling into

these terrible statistics and in appreciation for their

service to our nation. BVA appreciates that you not only

understand this issue, but are willing to take action to

correct the problems blinded veterans have had with these

annuities from some states being provided to them. These

should not be considered additional income by Social

Security, but instead a special disability benefit for their

service to our grateful nation. This penalty should be

removed and the annuities excluded from all income for

purposes of SSI for purposes of pension benefits.

BVA strongly supports H.R. 649, and we appreciate all your

strong efforts in regards to this issue for blinded veterans.

Sincerely,

Thomas Zampieri,

Director, Government Relations.