Tax Breaks for Katrina May Aid Rich More

[UpInArms]

http://news.yahoo.com/news?tmpl=story&cid=512&e=8&u=/ap/20050921/ap_on_go_co/hurricanes_washington_hk4

WASHINGTON - House and Senate tax writers agreed Tuesday on a package of tax breaks designed to help Hurricane Katrina victims recoup their losses and access needed cash.

The Congressional Research Service, an office that provides lawmakers with nonpartisan legislative analysis, said some of those tax breaks could do more for higher income survivors than for the neediest.

The tax bill is one avenue lawmakers have pursued in sending relief to hurricane evacuees. Since Katrina hit the Gulf Coast in late August, Congress has approved $62 billion in emergency spending and promised more.

<snip>

House and Senate tax writers, meanwhile, agreed on a tax bill that helps Katrina victims access their savings by waiving penalties imposed for tapping retirement savings accounts before retirement. Other provisions let taxpayers write off more of their destroyed property and erase taxes regularly imposed when a debt, like a mortgage, is forgiven.

<snip>

The Congressional Research Service report said some elements of the tax assistance would do more for wealthier taxpayers because many lower income individuals and families pay little tax. Lower income survivors are also less likely to have retirement accounts like 401(k)s and IRAs.

...more...

[UrbScotty]

1. MAY aid rich more? As in "or may not?" (nt)

[pitohui]

2. as in they have a funny idea of "rich"

a person who has to tap into her retirement funds because she has no savings acct is not "rich," she is middle class & struggling to hold onto it, when she is old, she will quite likely be impoverished if she doesn't make a point of dying in her 60s or early 70s

jeez, resenting a "rich" person for not paying a tax penalty on taking money out of their retirement fund when they have just lost their home...that's pretty damn "rich" if you ask me

[Inland]

3. Someone screwed up! There shouldn't be a chance it might help non rich

But I'm sure it will be tweaked in committee.

[Moderator]

4. duplicate topic

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=1794630