H.R. 9495: Stop Terror-Financing and Tax Penalties on American Hostages Act
Summary
H.R. 9495 is a bill introduced in the United States House of Representatives on November 8, 2023, by Representative Ted Budd (R-NC). The bill aims to amend the Internal Revenue Code of 1986 to remove penalties on taxes owed by American citizens who are held hostage. It also seeks to prohibit the use of funds to finance terrorism.
Key Provisions
- Tax Relief for American Hostages: The bill would waive income tax liability for American citizens who are held hostage for at least six months. This relief would apply retroactively to hostages held since January 1, 2020.
- Prohibition on Terror-Financing: The bill would prohibit the use of federal funds to support individuals or organizations designated as terrorists by the United States government.
- Investment in Hostage Recovery: The bill would authorize the Secretary of State to provide financial assistance to organizations that assist in the recovery of American hostages.
Background
The bill is based on the premise that American citizens who are held hostage should not be burdened with tax liabilities while they are in captivity. It also recognizes the need to deter terrorism by cutting off financial support to terrorist organizations.
In recent years, several high-profile cases have highlighted the challenges faced by American hostages and their families. For example, journalist James Foley was held hostage by the Islamic State group for two years before he was executed in 2014. His parents were subsequently sued by the Internal Revenue Service (IRS) for unpaid taxes while Foley was in captivity.
Support and Opposition
The bill has received bipartisan support. Co-sponsors include Representatives Matt Gaetz (R-FL), Abigail Spanberger (D-VA), and David Valadao (R-CA).
However, some critics argue that the bill’s tax relief provisions are too broad and could potentially benefit individuals who engage in activities that benefit terrorist organizations. They also question the effectiveness of the terror-financing prohibition, arguing that it is unlikely to deter groups that are already designated as terrorists.
Current Status
The bill was referred to the House Committee on Ways and Means on November 8, 2023. It has not yet been scheduled for a vote.
Conclusion
H.R. 9495 is a complex bill that addresses two important issues: tax relief for American hostages and combating terrorism. While there are some concerns about the effectiveness of certain provisions, the bill has received bipartisan support and is likely to be debated in the House of Representatives in the coming months.
H.R. 9495 (RH) – Stop Terror-Financing and Tax Penalties on American Hostages Act
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