Baca Wants Tax Relief for Wildfire Victims
Rep. Joe Baca, D-Rialto, introduced legislation in the House of Representatives that would provide tax relief to the victims of the California Wildfires. The California Wildfire Tax Relief Act of 2007 has already garnered bipartisan support and would provide special exemptions to the more than 2,000 homeowners who had their houses destroyed.
“Nothing we can do will replace the losses suffered by too many Californians this past week,” Baca said. “But we can help to make the rebuilding process as smooth as possible. Giving tax relief to those who have already suffered through so much is a good start in helping them return their lives to normal.”
The California Wildfire Tax Relief Act helps wildfire victims by:
* Providing special rules for the use of retirement funds to let people tap into savings without federal penalties.
* Suspending the limitation on individual and corporate tax deductions to motivate charitable giving.
* Excluding from gross income certain non-business discharges of indebtedness of individuals – allowing people to not pay income tax on discharged debt from creditors.
“Our brave men and women on the ground did a great job in stopping the devastation of the wildfires, and sheltering and caring for those affected by this tragedy,” Baca said. “It is now time for the federal government to ensure our recovering communities have all the resources they need. While this tax relief is on an individual scale, it will hopefully make the rebuilding process a little easier for our families and communities.”
The wildfires that began on October 21, 2007, swept through San Bernardino , Riverside , San Diego , Los Angeles , Ventura , Santa Barbara and Orange Counties . Recent estimates show that the fires destroyed 2,813 structures – including 2,007 homes. They are estimated to have burnt 518,489 acres - an area more than double the size of New York City - while killing seven people and injuring 113 firefighters and 26 civilians.
“After all the fires are out, and everyone is housed, fed, and clothed - we must craft a long-term solution that takes a realistic look at how to prevent future disasters of this magnitude,” Baca said. “But for now, I am glad to introduce this legislation that provides more immediate relief to the victims of the wildfires.”
The California Wildfire Tax Relief Act currently is co-sponsored by seven Members of the House of Representatives. The bill has been referred to the House Committee on Ways and Means and the Committee on the Budget to await further activity.
-- George Watson