Judy Chu

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Mr. Speaker, I yield myself such time as I may consume. I rise today in support of H.R. 9500, the Tax Relief for Fraud Victims Act. I would like to thank my colleagues, Mr. Miller and Mr. Suozzi, for their leadership on this bill. This bill corrects a longstanding policy mistake in the tax code. During President Trump's first administration, Republicans passed the Tax Cuts and Jobs Act--or what Democrats like to call the Trump tax scam--where they chose to limit the deduction for casualty and theft losses by limiting that deduction only to those losses that were incurred in a Presidential-declared disaster. Then, the so-called One Big Beautiful Bill Act--or what we Democrats like to call the big, ugly bill--doubled down on this policy, extending it permanently. This policy left many financially harmed taxpayers even worse off beyond just their financial losses. Victims of theft, victims of fraud, and those that suffered casualty losses due to no fault of their own were now unable to deduct those losses from their taxes, a double whammy after suffering such a loss. I am glad to see that my Republican colleagues have seen the error of their ways and have decided to reverse this policy. Additionally, I am glad to see that the policy allows retroactive relief for those who were the victims of fraud during the time this policy was in effect. Additionally, I acknowledge the tireless work of my colleagues, Representatives John Larson and Joe Courtney, who for years have been advocating on behalf of their constituents who suffered significant losses due to crumbling foundations in their homes as a result of pyrrhotite in a local quarry. Under this bill, these taxpayers will also be eligible for retroactive relief. In sum, this bill is a long overdue reversal of a policy that harmed many taxpayers, and I am glad to support this change to give taxpayers, who may have suffered an unfortunate life event, fair treatment by our tax system. Mr. Speaker, I reserve the balance of my time.