Thomas R. Suozzi

“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 am celebrating the 100th anniversary of the Long Island Association. For a century, this group has brought business, labor, and government together to help our local economy grow. We still need them today to help us solve problems with housing, transportation, energy, and taxes.”

“Mr. Speaker, I am so happy to be joining with my colleagues in the spirit of bipartisanship to celebrate the 100th anniversary of the Long Island Association. It has been a long journey, where over 100 years, a few name changes, under different leadership, and over a transition from farmland to suburbia to one of the densest, most productive regions in the Nation, the Long Island Association has brought together the best minds in business, labor, education, government, and the not-for-profit community to lay out a vision to move our community forward. The Long Island Association has helped lead the way to make Long Island one of the most powerful regional economies in the United States of America. Now, the Long Island Association has not done everything right. In preparing for this speech, I learned that the Long Island Association, along with none other than Robert Moses, proposed a bridge from Connecticut to Long Island. It might have been a good idea for business and traffic, but it would have ruined my beaches. I have been in public life for over 30 years, first elected as mayor in 1993. As a result, I had the opportunity to be friendly with each leader of the Long Island Association during that time, from Jim Larocca to Matt Crosson to Kevin Law to Matt Cohen, and now the extraordinary Stacey Sikes. I worked together with Stacey when I was Nassau County Executive. I saw firsthand her intelligence, work ethic, integrity, and her ability to bring people together. She, together with our chairman, Larry Waldman, and so many other good people on the board, we realize the Long Island Association is in very good hands. For a century, the Long Island Association has been in the room for nearly every major conversation about our region’s future. It helped advocate for the creation of Jones Beach State Park. It advocated for the Long Island Expressway and the Grand Central Parkway. It was there for the growth of Levittown and the merger of North Shore University Hospital and the Glen Cove Hospital, which laid the foundation for what is now Northwell Health. The Long Island Association has supported the growth of research and innovation and has brought together leaders to address the workforce development, housing, clean water, energy, and the stewardship of our natural resources like the Long Island Sound. The association knows what businesses and workers need. It knows where Long Island commerce is pulling ahead and where it is falling behind. It understands the challenges we are facing when it comes to housing, transportation, workforce shortages, and energy reliability. It knows who needs to be in the room to ensure Long Island stays competitive in a rapidly changing economy. We need the Long Island Association now more than ever. In our contemporary world, with the division between Democrats and Republicans and a fractured media environment, it is hard to know who to trust. We need the Long Island Association to continue to bring us together in search of a common vision to make Long Island the best place to live, work, and enjoy our lives. The challenges we face today are different than they were 100 years ago, but the need for people to work together to cross party lines, to cross from business to labor, from elected officials to the not-for- profit community and education is the same need we have always had. We must work together to build upon the progress that has been made to increase the SALT deduction and make life more affordable for Long Islanders. We must work together to build more housing in downtowns so that we can expand the tax base and create an environment that is attractive and affordable to young people, and thereby expand our workforce and create cool downtowns. We must work together to ensure that our energy is sustainable, reliable, and affordable. We must work together to improve our infrastructure, reduce traffic, and hasten our commutes. We must work together to protect the environment and to keep our communities safe so that we can maintain one of the greatest qualities of life of any region in the Nation. Working together, Democrats and Republicans, in league with our partners represented by the Long Island Association, we know that Long Island’s best days are ahead. Congratulations on an extraordinary first century, and here is to the next 100 years.”