Congress Eyes Tax Changes to Aid Hurricane Victims

Congress Eyes Tax Changes to Aid Hurricane Victims: "Congress Eyes Tax Changes to Aid Hurricane Victims

September 14, 2005

Lawmakers in the nation's capital have proposed tax changes to encourage charitable giving and help victims of Hurricane Katrina get back on their feet.

The Senate's top tax writers offered a package of tax aid that would let hurricane victims tap their retirement accounts without penalty. It also would assist businesses and encourage the donations of cash, food and school books.

Senators said the incentives, estimated roughly to reduce taxes by $5 billion to $7 billion, could pass quickly this week. It would be followed with provisions for health coverage for storm victims and, later, by tax incentives to rebuild battered towns and cities, they said."