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House Passes Tax Break for Va. Tech Victims

December 5, 2007

By Sean Mussenden

WASHINGTON - The House voted today to give a tax break to families of victims of the Virginia Tech massacre.

The proposal, which passed by voice vote, would exempt from federal income tax payments from a school fund to those affected by the April 16 shooting rampage.

The Hokie Spirit Memorial Fund has paid out more than $8.5 million, including $208,000 to the families of each of the 32 men and women killed by gunman Seung-Hui Cho.

"These are funds some families desperately need to pay medical bills, funeral costs and to rebuild their lives. The last thing these families need to worry about is an additional tax burden," said Rep. Bob Goodlatte, R-Va., who sponsored the bill with Rep. Rick Boucher, D-Va., and other Virginia legislators.

Rep. Eric Cantor, R-Va., said in a statement that it would be an injustice for recipients to have to pay taxes on the payments.

"There can be no denying that the kind folks who made contributions did not intend to enrich the federal government's coffers," Cantor said.

The Hokie Spirit tax break likely will affect less than 100 individuals. Exempting the payments from income tax will cost the federal government less than $500,000, Boucher said, citing a study by the Congressional Budget Office.

That loss would be more than offset, he said, by a $1 increase in the penalty for late filing of partnership tax returns that has been paired with the Virginia Tech tax break.

This "removes an unnecessary tax burden for those affected most directly by the tragedy," said Boucher, whose district includes the Virginia Tech campus.

Sen. John Warner, R-Va., and Sen. Jim Webb, R-Va., are sponsoring similar legislation in the Senate. Sponsors of the tax break said they hope President Bush will sign it this month.

More than 21,000 donors - from elementary school children to the New York Yankees — contributed to the fund. Besides money given to families of victims of the attack, the fund also gave $104,000 each to five seriously injured people and $46,000 each to eight others who suffered less serious injuries. Another 34 people who were in the classrooms where the attacks took place got $11,500 each.

Congress gave similar tax treatment to victims of the Oklahoma City and Sept. 11 attacks, which supporters set a precedent for the bill that passed Tuesday.

Sean Mussenden can be reached at 202-662-7668 or smussdenden@mediageneral.com