In One Eye

Wednesday, September 21, 2005
 
This doesn't surprise anyone, does it?
Tax breaks designed to help Hurricane Katrina victims get their hands on needed cash could do more for higher income survivors than for the neediest, a congressional report says.

The Congressional Research Service, an office that provides nonpartisan legislative analysis to lawmakers, pointed to several items in virtually identical bills that passed in the House and Senate last week.

One helps hurricane victims get access to their savings by waiving penalties imposed on taxpayers who tap into their retirement savings accounts before retirement. Others let taxpayers write off more of their destroyed property, and erase taxes regularly imposed when a debt, like a mortgage, is forgiven.

The report says lower income survivors are less likely to have retirement accounts like 401(k)s and IRAs to tap into for recovery. Because many lower income individuals and families pay little tax, assistance efforts that lower their taxes may do little good, the report said.
Ho hum. Just another policy of the plutocracy the US government has become.