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| Wed, Aug. 20, 2008 |  |
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| | House votes to stiffen bankruptcy rules, end estate tax
Sunday, Apr 17, 2005 By Tony Batt Stephens Washington Bureau WASHINGTON -- Filing for bankruptcy will no longer provide as much relief for people burdened with debt, according to a bill approved 302-126 last week by the House. The legislation would raise filing fees and paperwork requirements and give creditors many new legal rights in the bankruptcy process. Advocates of the bill, which include President Bush, cited a surge in bankruptcy filings in the last decade and said reforms are necessary to prevent abuses of the system. Opponents charged the bill is a payoff to credit card companies and the financial services industry. They complained many families will be barred from extinguishing their debt and getting a fresh start because they will be barred from taking advantage of the more generous provisions of the bankruptcy code. The Senate passed similar legislation earlier this year and the president is expected to sign a final bill soon. Reps. Marion Berry, D-Gillett; John Boozman, R-Rogers; and Mike Ross, D-Prescott; voted for stiffer bankruptcy guidelines. Rep. Vic Snyder, D-Little Rock, voted against stiffer bankruptcy guidelines. Killing the death tax The House voted 272-162 to permanently repeal the estate tax, also known as the death tax, which is levied on inheritances. Without the repeal, estates of more than $1 million will be subject to a 55 percent tax by 2011. Supporters of permanent repeal said the estate tax is a form of double taxation because an estate's assets already have been taxed once as income. Permanent repeal also would help family businesses and small farms in their estate planning, they said. Critics claimed permanent repeal would shield the estates of the very wealthiest Americans and cost the government $290 billion through 2015. This was the fourth consecutive year the House has passed a bill to permanently repeal the estate tax. The legislation's prospects in the Senate are uncertain. Berry, Boozman and Ross voted for permanent repeal of the estate tax. Snyder voted against permanent repeal of the estate tax. Veterans spending rejected The Senate voted 54-46 against adding $2 billion to the fiscal 2005 budget to pay for an expected increase in veterans' health care. Sen. Patty Murray, D-Wash., introduced the amendment, saying an influx of many new veterans will need more help than the deteriorating facilities of the Department of Veterans Affairs can offer. Republicans blasted the proposal, citing a letter from Veterans Affairs Secretary Jim Nicholson who said the department has all the money it needs to get through Sept. 30. Sens. Blanche Lincoln and Mark Pryor, both D-Ark., voted for the veterans' amendment. Military death benefits raised A proposal by former Democratic presidential nominee Sen. John Kerry of Massachusetts to increase death benefits for families of soldiers killed in action passed the Senate by a vote of 75-25. Kerry's proposal would raise the "death gratuity" from $12,420 to $100,000 for members of the armed forces who were on active duty after Oct. 7, 2001. Opponents argued the increase should be restricted to those killed inside a combat zone. Lincoln and Pryor voted for the Kerry amendment. Civilian pay protected Federal employees activated for National Guard duty would not lose any money they would have received in their civilian jobs, according to an amendment approved 61-39 by the Senate. Sen. Richard Durbin, D-Ill., the amendment's sponsor, said there are about 120,000 federal workers in the National Guard. When activated, they lose an average of $368 per week, and Durbin said that's one of the main reasons so few re-enlist. Critics argued members of the National Guard understand the financial implications of serving when they enlist. Paying them more than other members of their military units could hurt morale, they said. Lincoln and Pryor voted to make up the difference in pay for federal employees who join the National Guard. -30- |
