2002 Ron Paul 60:1
Mr. Speaker, I am pleased to
introduce the Public Safety Tax
Cut Act. This legislation will achieve two important public policy
goals. First, it will effectively overturn a ruling of the Internal Revenue Service
which has declared as taxable income the waiving of
fees by local governments who provide service for public safety volunteers.
2002 Ron Paul 60:2
Many local governments use volunteer firefighters and auxiliary police either in place of,
or as a supplement to, their public safety professionals. Often as an incentive to
would-be volunteers, the local entities waive all or a portion of the fees typically charged for
city services such as the provision of drinking water, sewer charges, or debris pick up.
2002 Ron Paul 60:3
Local entities make these decisions for the purpose of encouraging folks to volunteer, and
seldom do these benefits come anywhere near the level of a true compensation
for the many hours of training and service required of the volunteers. This, of course, does not even
mention the fact that these volunteers very possibly could be called into a situation where
they have to put their lives on the line.
2002 Ron Paul 60:4
Rather than encouraging this type of volunteerism, which is so
crucial, particularly to Americas
rural communities, the IRS has decided that the provision of the
benefits described above amount to taxable
income. Not only does this adversely affect the
financial position of the volunteer by imposing new taxes upon him or her, it has
in fact led local entities to stop
providing these benefits, thus taking away a key tool they have used to
recruit volunteers. That is why the IRS
ruling in this instance has a substantial negative
impact on the spirit of American volunteerism. How far could this go? For
example, would consistent application
mean that a local Salvation Army volunteer must be taxed for the value
of a complimentary ticket to that
organizations annual county dinner? This is obviously bad
policy.
2002 Ron Paul 60:5
This legislation would rectify
the situation by specifically exempting these types of
benefits from federal taxation.
2002 Ron Paul 60:6
Next, this legislation would
also provide paid professional police and fire officers with a
$1,000 per year tax credit. These professional public safety officers put
their lives on the line each and every
day, and I think we all agree that there is no way to properly
compensate them for the fabulous services they provide. In America we have a
tradition of local, as opposed to federal, law
enforcement and public safety provision. So, while it is not the role
of our federal government to increase the salaries of local officers, it
certainly is within our authority to increase their take-home pay by reducing the
amount of money that we take from their pockets via federal taxation, and that is
something this bill specifically does as well.
2002 Ron Paul 60:7
President George Bush has
called on Americans to volunteer their time and energy to
enhance public safety. Shouldn’t Congress do its part
by reducing taxes that discourage public safety volunteerism? Shouldn’t
Congress also show its appreciation to police officers and fire
fighters by reducing their taxes? I believe the answer to both of these questions
is a resounding "Yes," and therefore I am proud to introduce the Public
Safety Tax Cut Act. I request that my fellow Members join in support of
this key legislation.
This chapter appeared in Ron Pauls Congressional website at http://www.house.gov/paul/congrec/congrec2002/cr062502.htm