ICYMI: Sen. Cruz: Congress Is Helping Millions of Texans Hurt by Hurricanes

WASHINGTON, D.C. – U.S. Sen. Ted Cruz (R-Texas) today joined the ‘Michael Berry Show’ to discuss his efforts to provide tax relief for Texans as part of the Disaster Tax Relief and Airport and Airway Extension Act of 2017, which was signed into law last week by President Donald Trump. The bill was sponsored by Sen. Cruz and cosponsored by Sens. John Cornyn (R-Texas) and Marco Rubio (R-Fla.) and it is the fourth Cruz bill to be signed by the President this Congress. Sen. Cruz also discussed his priorities for fundamental tax reform.

Audio from Sen. Cruz’s interview with Michael Berry may be found here.

“Last week we actually saw a significant accomplishment for the people of Texas. Which is that Congress enacted tax relief for hurricane victims, for victims of Harvey and Irma and Maria. And it was legislation I introduced - it was Cruz-Cornyn-Rubio legislation and it was directed in providing immediate relief to Texans who were hit by this terrible storm.”

Sen. Cruz discussed the provisions included in the Disaster Tax Relief and Airport and Airway Extension Act of 2017, highlighting the additional deductions and waived penalties for storm victims.

“It provides number one for people who have losses in the storm that uncompensated losses, that they can deduct those on their taxes free of the current cap that requires that the losses exceed of 10% of adjusted gross income. So it makes it easier to deduct those losses on your taxes. It also provides that folks hit by the storm can withdraw money from 401k plans, retirement plans to use to rebuild from the storm without having to pay the 10 percent penalty that you normally pay.”

Sen. Cruz continued, “And it also has two other elements. It encourages charitable giving all over the country, so that people can make contributions to disaster relief organizations, free of the caps and limits that ordinarily apply to charitable giving. And for employers, if you’ve got a small business, that paid it’s employees during the hurricane or in the aftermath, even when the business was shut down. You know a lot of our employers did that, went ahead and paid their employees. And provide the tax credit for that business for having paid your employees through the hurricane even if they weren’t able to work because of the disaster. All of those were targeted tax relief aimed at Texans who were hit by Harvey, and that legislation the Cruz-Cornyn-Rubio legislation passed the Senate, passed the House, and last week, President Trump signed it into law.”

Sen. Cruz also discussed his priorities for fundamental tax reform, including simplification.

“I am working night and day on it [tax reform]. I just left two meetings with my colleagues on the topic of tax reform. I think we’ll get it done. I think virtually every Republican wants to get it done. What’s an open question is how big and bold it will be? What I am pressing for, is do something with some real bang for the buck. I think politically it’s almost as hard to do something small and piddly as it is to do something that is, that really has a positive affect – that cuts taxes, that helps small businesses, that helps families. And I hope we do that because that will have an incredible effect on the economy.”

Sen. Cruz continued, “As you know, being able to fill out your taxes on a postcard is something I’ve campaigned on and pushed hard for, for many years. And I was very gratified that the Administration’s proposal and the proposal in both houses incorporates that suggestion that I’ve been fighting for, for a long time, which is simplifying the code so people can fill out their taxes on a postcard.”

As a result of Sen. Cruz and Sen. Cornyn's work with the Texas Congressional delegation, on September 7, Congress passed H.R. 601, the Continuing Appropriations Act, 2018 and Supplemental Appropriations for Disaster Relief Requirements Act, 2017, sending an initial payment of $15.25 billion to supplement hurricane relief efforts. These funds immediately targeted areas hit by Hurricane Harvey, and focused on initial clean-up and rebuilding. 

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