Press Releases
Rep. Don Young Introduces Exxon Valdez Oil Spill Tax Treatment Act
Washington, D.C.,
March 7, 2007
The Exxon Valdez Oil Spill Tax Treatment Act (H.R. 1334) has been introduced by Alaska Congressman Don Young and Congressman Dave Reichert (R-WA).
This bill would give the plaintiffs in the Exxon Valdez oil spill settlement the ability to increase retirement contributions and would provide tax relief through income averaging. “This bill does not prejudge the outcome of the case - it simply specifies the tax treatment of the potential awards for when this case is finally resolved,†said Rep. Young, the Ranking Member of the House Committee on Natural Resources. “I look forward to an eventual end to all of the litigation and a fair resolution to this ongoing dispute. This bill will provide some financial relief to the commercial fisherman and many others who were impacted by the spill nearly 18 years ago. Due to the direct hit their livelihoods took, they were unable to properly plan for their future retirement. We are looking to help lift some of that burden with H.R. 1334.†"When the Exxon Valdez crashed into Bligh Reef, it had a terrible impact on thousands of fishermen," Congressman Dave Reichert (WA-08) said. "Because Exxon Mobil has repeatedly delayed court ordered payments to those affected by the worst environmental disaster in our nation’s history, many of those affected nearly 18 years ago are now facing retirement. I am pleased to work with Congressman Don Young to introduce a bill which will help the affected fishermen with their retirement plans. Exxon Mobil has delayed payment to those affected for far too long. This bill will help ensure that when Exxon finally does pay, those affected will not have to worry about their retirement." Specifically, this bill would: · Increase the caps on both deductions and income for traditional IRA’s to the extent of the income a plaintiff receives from the settlement or judgment. · Allow plaintiffs to make contributions to Roth IRA’s and other retirement plans to the extent of the income received from settlement or judgment. · Allow plaintiffs to average their (lost) income for the period of time between December 31 of the year they received the settlement or judgment payment and January 1 1994 – the year of the original jury award in Federal Court. Fishermen are currently allowed to average their income over three years. For more information, access the Committee on Natural Resources’ Minority website at: http://republicans.resourcescommittee.house.gov/index.shtml # # # |