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Committee on Ways and Means - Charles B. Rangel, Chairman
Committee on Ways and Means - Charles B. Rangel, Chairman Committee on Ways and Means - Charles B. Rangel, Chairman
All Bills for raising Revenue shall originate in the House of Representatives Charles B. Rangel, Chairman
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House Committee on Ways and Means

For Immediate Release:
Wednesday, October 17, 2007
Contact:
J. Jioni Palmer or Matthew Beck (202) 225-8933
William Tranghese (202) 225-0612

Neal Opening Statement at the Joint Hearing on the “Heroes Earnings Assistance and Relief Tax Act of 2007"
Legislation designed to help members of our armed forces and their families, as well as others volunteering in service to America

WASHINGTON, D.C. – At a joint hearing of the Subcommittees on Select Revenue Measures and Income Security and Family Support today U.S. Representative Richard Neal (D-MA) gave the following opening remarks:
 
“I call this hearing to order.

“This country is fortunate that so many soldiers and sailors have been willing to sacrifice for our defense.  That sacrifice often comes in different forms.  For the reservist or Member of the National Guard who is called up to duty for extended periods, it can mean stepping off the career ladder or shuttering their own business.  For the husband or wife of an active duty soldier, sacrifice can mean managing the household as a single parent.  As the mother, father, or child of someone serving our country, sacrifice can mean losing a loved one. 

“We have all witnessed the depth of this sacrifice as we tour local military hospitals, visit veterans’ assistance centers, or attend funerals.  Just last week, another young son from Western Massachusetts was lost.  Army Private Kenneth Iwasinski was killed by an IED in Baghdad.  He was scheduled to return home earlier this year but his tour was extended.  Kenneth was the 78th fallen hero from my home state and I extend my deepest sympathies to his parents, Tracy Taylor of Chicopee, Massachusetts, and Dominick Iwasinski of Belchertown.  You do not have to look far in any city or town in America to find extraordinary service and sacrifice for our country.

“It has been said that, “In war, there are no unwounded soldiers.”  This could probably apply to many military families, as well. 

“It is truly a shared sacrifice, even when only one member of the family has volunteered their service.  The family can suffer financially as well as emotionally during extended tours.  It is the responsibility of this Committee to ensure that the tax code and other income security provisions do not create problems, but rather solve them so that families and soldiers can heal emotionally, physically, and financially, and move on with their lives.

“Today, the Select Revenue Measures Subcommittee along with the Income Security and Family Support Subcommittee will hear from a variety of witnesses on draft legislation to extend, modify, and create a number of incentives to assist these families that have sacrificed so much for us. 

“This legislation would make permanent the current provision waiving the 10% withdrawal penalty for those called up to active duty who need to tap into retirement accounts.  We have Rep. Lampson to thank for this one, and he will be testifying on this today.

“The draft would also allow families to roll over amounts received as death gratuity payments into Roth IRA’s or Education Savings Accounts, an idea from Rep. Walter Jones, who will be before us as well.  The draft makes a number of changes relating to Supplemental Security Income, or SSI, eligibility and military service, based on suggestions from Rep. Susan Davis, who joins us today, and Rep. Tom Reynolds, a senior member of this Committee. 

“Already, a number of Members, including Rep. Nancy Boyda, Rep. Zack Space, Rep. Gabrielle Giffords, and Rep. Bruce Braley, have filed legislation to make permanent the special rule treating combat pay as earned income for purposes of the Earned Income Tax Credit, or EITC.  The draft bill we are discussing today includes that important provision and we thank those Members for championing this issue.

“The draft bill will provide a number of changes to allow employers the flexibility to extend benefits to workers called up to duty, and will expand certain provisions that provide mortgage assistance to veterans through qualified bond programs. 

“The draft bill also includes incentives for those who volunteer their service stateside, such as firefighters and emergency responders, as has been suggested in legislation by Mr. Larson.

“As you can see, we have reviewed a number of good suggestions from Members of the House, and we are still doing so.  It is our hope that a final bill will be a bipartisan product that the full Committee can mark up in the next few weeks.

“To assist us today in understanding all of these provisions, we welcome today on our first panel, Representative Davis, Representative Lampson, and Representative Jones.

“On our second panel, we will hear from Mr. David Rust, the acting Deputy Commissioner for Disability and Income Security Programs at the Social Security Administration.  Mr. Rust will discuss the SSI provisions under consideration.

“And on our third panel, we will welcome Jack Downing, President and CEO of the United Veterans of America, based in Leeds, Massachusetts.  Mr. Downing heads an early intervention program to assist recently returned veterans in transitioning back into the workforce.

“We will also hear from Ms. Victoria Jackson of Yakima, Washington, who lost her husband earlier this year, and almost lost his retirement savings as well.

“We will hear from Mr. John McAuliffe, the Connecticut State Director of the National Volunteer Fire Council, from Wethersfield, Connecticut.

“And we will hear from Ms. Jessica Perdew, representing the National Military Family Association in Alexandria, Virginia.

From Albany, New York, we are pleased to be joined by Ms. Michelle LaRock, the Deputy Director of Program Development at the Division of Veterans’ Affairs, who will discuss the state annuity program for blind veterans.”

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