House, Senate Pass Katrina Tax Cut Bills

WASHINGTON -- The House and Senate each passed tax cut bills Thursday aimed at helping victims of Hurricane Katrina as government money continues to flow in response to the devastation, The Associated Press reported.

The tax cuts are designed to give people affected by the hurricane easier access to their retirement savings and to encourage charitable giving, among other incentives aimed at easing suffering from Katrina. Each chamber passed its bill by a voice vote.

Lawmakers still need to reconcile the minor House-Senate differences in the legislation before it can be sent to President Bush for his signature.

The House and Senate tax plan, among other steps, waives penalties for hurricane victims who tap into their retirement savings accounts, helps the working poor hold onto an earned income tax credit, and provides a tax break to anyone who houses evacuees for two months or more.

-- NYSSCPA.org News Staff

Posted on 9/15/05