“I like this bill. The last president's party was wrong. They hurt people. They hurt people more than once. People lost money. The tax system hurt them more. The last president's party did that. My party fixed it now. I want to say thanks for fixing it. Some people had problems with their homes. This bill helps them too. This bill helps people who lost money before. I support this bill. It fixes past mistakes. It is fair now.”

“I want the House to pass this bill. Past tax laws stopped people from deducting theft and casualty losses unless there was a declared disaster. This bill lets victims of fraud, theft, and damaged homes deduct those losses on their taxes, even for past years.”

“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.”

“Many Americans lose money to scams. The government taxes them on the stolen money. That's wrong. I want this bill to pass. It fixes the problem. Victims will not be taxed on money they lost. They won't pay penalties for withdrawing money either. We will help people who were victims before too. This is not a partisan issue. Everyone should support it.”

“I want the House to pass this bill. Right now, people who lose money to scams often still have to pay taxes or retirement penalties on that stolen money. This bill stops the government from taxing money that criminals stole from victims.”

“Mr. Speaker, I rise in support of H.R. 9500, the Tax Relief for Fraud Victims Act. I would first like to thank my colleagues on the other side of the aisle for partnering with me on this bipartisan, commonsense bill, which will ensure that Americans do not have to pay taxes on money that they were defrauded out of. Mr. Speaker, Americans are being scammed at incredible rates. According to the Federal Trade Commission, last year, 3 million American consumers reported over $15 billion in fraud losses, the highest for any year on record. This is an increase of over 25 percent from the previous year. That spike is driven by a rise in six-figure scams. Imagine losing the money that you were saving for a down payment, the money you had built up for your kid's education, or even a savings account that helps you sleep better. Our seniors are among the most vulnerable to scams. According to the AARP, which has endorsed this bill, 4 out of 10 older Americans have lost money to fraud. Last year, Americans aged 60 and older reported $7.7 billion in losses, a dramatic 60 percent more than the previous year. These numbers don't account for the widespread underreporting. The Federal Trade Commission estimates that Americans could be losing as much as $200 billion to criminal fraudsters every year. These aren't abstract numbers. These are our grandparents, small business owners, and the neighbor next door. When a victim uncovers a scam, they have to contend with the immediate ramifications, not only the devastating financial loss but also the shame they may feel. Then, after the scammer takes their money, the IRS comes for them, too. Imagine, you earn money or you withdraw it from your 401(k); you get cheated, defrauded; and then you have to pay taxes on those lost earnings or your lost 401(k) distributions. It is unfair. It pours salt in the wound of an already painful and incredibly stressful situation. This wasn't always the case, as was mentioned by Ms. Chu. Prior to the passage of the Tax Cuts and Jobs Act in 2017, victims of scams could deduct their losses from their taxes, but since then, these victims have been on the hook for hundreds of thousands of dollars in payments to the IRS despite their already precarious financial situation. It gets worse. Many scam victims who took money out of their 401(k) or IRA account to pay the scammer still have to pay the income taxes on the money they withdrew, and if the victim is under the age of 60, they get hit with an additional 10 percent early distribution penalty. They lose their retirement savings, then they get hit with a tax bill on top of that. Mr. Speaker, this is unfair, plain and simple. It is simply not right to make anyone pay taxes on money they don't have, especially after a traumatic event like discovering you were the victim of a scam. We have the opportunity tonight to right this wrong by supporting H.R. 9500, the Tax Relief for Fraud Victims Act. This bill would restore the theft loss deduction so that victims of a scam or fraud are not taxed on money that was stolen from them. This bill would also waive the 10 percent early withdrawal penalty when a victim was forced to pull money from their retirement account because of fraud. Most importantly, this bill provides retroactive relief for Americans who fell victim to scams or fraud while this deduction was unfairly restricted. Mr. Speaker, this is not a partisan issue. The Federal Government should not tax stolen money. That is why this bill passed through the Ways and Means Committee under Chairman Smith and Ranking Member Neal with unanimous support. By supporting this bill, Congress can right a wrong and make sure the government is not coming after victims who have lost everything to criminals. Mr. Speaker, I urge my colleagues to support H.R. 9500, the Tax Relief for Fraud Victims Act.”

“I want to end a bad policy. Scam victims should not be punished by taxes. This bill helps them. I want everyone to vote for this bill.”

“I urge both parties to vote for this bill. It fixes tax rules so victims of fraud and theft are treated fairly and not penalized.”

“Mr. Speaker, I yield myself the balance of my time. Mr. Speaker, by reversing this misguided policy, survivors of fraud, theft, and tremendous loss will no longer be penalized by the tax code and will still receive the fair treatment that they so rightfully deserve. Mr. Speaker, I urge my colleagues on both sides of the aisle to support this bill, and I yield back the balance of my time.”