Pathological

["Michael Keaney" <Michael.Keaney@xxxxxx>]

>From the Guardian's breaking news pages:

http://www.guardian.co.uk/uslatest/story/0,1282,-1169377,00.html

Tax Relief For Victims' Families

Thursday September 13, 2001 4:50 PM

WASHINGTON (AP) - Victims of the terrorist attacks and their
families would get tax breaks previously reserved for foreign
combat zones under a bill announced Thursday by House
leaders.

The victims' relief bill, which could pass the House as early as
Thursday, would forgive income taxes for victims of the terrorist
attacks and effectively cut in half any tax that applies to their
estates. It would also make federal disaster aid tax-free and
ensure that payments from airlines to families of passengers
killed in the four crashes would be tax-free.

Such tax breaks currently apply only to military personnel and
civilians in foreign combat zones, said Rep. Bill Thomas,
R-Calif., chairman of the House Ways and Means Committee.
Until these terrorist attacks, there had never been a need for
such laws to respond to incidents inside U.S. borders.

``The package is self-evidently necessary,'' he said. ``It is a
response to an attack that was tantamount to war.''

There was no immediate official estimate of the bill's cost to the
government, but Thomas pegged it at ``perhaps tens of millions''
of dollars.

``It is not a large amount. But for those people directly involved,
it is a positive and appropriate gesture,'' he said.

House Republicans also began putting together a broader
economic stimulus plan focused on cuts in the capital-gains tax
on investments and business tax incentives.

``The most objective counterterrorism weapon we have in the
long run is that there is no long-term setback to our economy,
so that we can continue to grow and be strong,'' Thomas said.

The larger economic stimulus package is expected to begin
taking shape next week. Thomas said it could include cutting
the top capital-gains tax rate from 20 percent to as low as 15
percent to spur investment and prop up the nation's equity
markets.

Business tax incentives could include increasing the amount of
business costs smaller companies can write off and giving larger
corporations investment tax credits, he said.

The aim, Thomas said, it so ``make sure there's adequate
stimulus in the economy so we can pick up where we left off a
week ago.''

The Treasury Department is also working on administrative tax
relief measures related to the terrorist attacks, including a
two-week delay in transportation tax deposits made by airlines.
Other steps affecting businesses and individuals could be
announced as early as this week.