Inside the brain of the smartest man in Washington

FEMA Disaster Payments are not Taxable

March 15th, 2005

Washington, DC: Legislation cosponsored by Congressman Ron Paul passed in the U.S. House of Representatives yesterday. HR 1134, introduced by Congressman Mark Foley of Florida, will ensure that FEMA grants do not add to the tax burden of disaster victims. Paul and dozens of other members from flood-prone and hurricane-prone districts petitioned the House Ways and Means committee for prompt consideration of HR 1134, and the bill passed unanimously yesterday.

Federal tax laws did not specifically address the issue of taxing federal disaster relief, but some FEMA officials have suggested that grants should be considered taxable income. HR 1134 settles the issue by stating in black and white that federal disaster mitigation payments are excluded from gross income.

“It makes no sense for the IRS to tax FEMA or other federal disaster grants,” Paul stated. “The people of the 14th district of Texas already pay plenty of taxes to fund FEMA. Why should they be hit with another tax bill when FEMA returns some small measure of those taxes in the form of disaster relief? The IRS doesn’t tax people when the federal government builds a new bridge or highway in their neighborhood. FEMA is simply another federally-funded program, and it is preposterous to consider FEMA grants taxable income.”

The Treasury Department assures Congressman Paul’s office that official IRS policy now reflects HR 1134, and that taxpayers who received FEMA assistance in 2004 should not include that assistance as income on their 1040 forms.

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Reject the Latest Foreign Welfare Scheme

March 14th, 2005

<br /> Reject the Latest Foreign Welfare Scheme<br />

Providing for the establishment of a commission in the House of Representatives to assist parliaments in emerging democracies.

Mr. Speaker, I rise in opposition to this legislation. We have absolutely no constitutional authority to establish a commission to “assist” parliaments throughout the world. Despite all the high-sounding rhetoric surrounding this legislation, we should not fool ourselves. This is nothing more than yet another scheme to funnel United States tax dollars to foreign governments. It is an international welfare scheme and an open door to more U.S. meddling in the internal affairs of foreign countries.

How can we tell an American family struggling to pay its bills that it must pay more taxes so a foreign parliament can purchase fancy plasma screen televisions, or the latest computer equipment, or ultra-modern communications equipment? Can anyone here justify this?

Mr. Speaker, this bill will do more than just take money from Americans. This commission will enable members of Congress and congressional staff employees to travel the world meddling in the affairs of foreign governing bodies. It is counterproductive to tell other nations how they should govern themselves, as even if we come loaded with dollars to hand out, our meddling is always resented by the local population — just as we would resent a foreign government telling us how to govern ourselves. Don’t we have enough of our own problems to solve without going abroad in search of foreign parliaments to aid?

I urge my colleagues to reject this wasteful and counterproductive scheme.

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Congratulations to James Robert Brooks

March 10th, 2005

Washington, DC: Congratulations are in order for James Robert Brooks, a 2001 graduate of Brazosport High School. James, a senior at the prestigious Air Force Academy in Colorado, was nominated for the Academy by Congressman Paul. James will graduate this spring and become an officer in the United States Air Force.

James, 21, is the son of Lynn Brooks and the late Phillip Brooks of Lake Jackson. He is the first Brazosport High student to earn a nomination to the Academy, where he fought in the Air Force Wing Open boxing tournament. James has been assigned to pilot training at Columbus Air Force Base in Mississippi upon graduation, where he may learn to fly anything from helicopters to the A-10 “Warthog” combat aircraft.

“I very much enjoy nominating young people for our military academies,” Congressman Paul stated. “It’s gratifying to watch a young man like James not only earn admission to the Air Force Academy, but also succeed in his studies there. His acceptance into a pilot training program demonstrates the Air Force has great faith in his capabilities. He should be commended for these accomplishments, and I wish him well as he embarks on his Air Force career.”

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